A businessman who has made a series of courtroom allegations against a top Manchester law firm has lost his latest legal battle. Abbey Solicitors and former client David Rose, 58, a residential and commercial landlord from Prestwich, are involved in a series of claims and counter claims at the High Court in Manchester.
In their latest courtroom battle, a judge has sided with a Abbey 'paralegal' Nick Henesy in a row over land deal in Stockport, and dismissed allegations by Mr Rose that he is the victim of 'a scheme that has been perpetrated against him'. Last year the Manchester Evening News reported Abbey was facing High Court allegations it failed Mr Rose over a £1m land deal in Broughton Park.
Court papers alleged Mr Henesy - said to be working under the supervision of the law firm's owner and founder Nadeem Ullah - lodged a 'deed of priority' which effectively diverted funds into a company Mr Henesy controlled. Mr Rose alleged only £200,000 was ever paid and that he has lost almost £800,000 on the deal.
The claim named a paralegal at Abbey, Nick Henesy, who was said to be acting 'under the supervision' of the firm's owner, Nadeem Ullah, 52, from Hale, Trafford. The dispute over the Broughton Park property is due to go for trial.
In the latest battle, Mr Henesy's company Creativity Etc, of which he is a director, splashed out on a top KC to bring a claim for £10,200 for three alleged breaches of contract by Mr Rose and his business partner David Waxman concerning a property on Lower Hillgate in Stockport. The property is thought to be to be valued at about £650,000.
A judge has ruled Rose and Waxman breached two clauses of a mortgage agreement and ordered them to pay damages totalling £7,912. Top commercial law advocate Ian Clarke KC, for Creativity, pressed the court to award costs to his client totalling £37,000 including £17,000 for the KC himself, even though the costs dwarfed the original claim.
At a hearing at Manchester's Civil Justice Centre, His Honour Judge Mark Halliwell awarded costs totalling almost £19,000 as the applicant had succeeded with most of its case and a bid by the businessmen to throw out the case entirely had failed. Victoria Roberts, for the two defendants, alleged Nick Henesey had been Mr Rose's 'trusted legal advisor at the time', and that a 'scheme has been perpetrated against him' which said was now being investigated 'by the authorities'.
The lawyer told the court there was a 'wide web of allegations of dishonesty'. The judge told the hearing that ultimately the claimants had been recovered an 'insubstantial' amount and went on: "Whilst the claimant is entitled to seek a Rolls Royce service... I'm satisfied it isn't reasonable for the entirety of those costs to be visited on the defendant."
He noted the KC's fee was 'more than twice the sum that's been recovered', ultimately awarding costs totalling £18,946. Judge Halliwell had earlier dismissed an application to adjourn the case to allow more time to investigate allegations of fraud and dishonesty particularly against Nick Henesy.
He said another case would consider the 'validity' of documents alleged to have been forged. The judge pointed out the defendants had three months' notice to deal with the application but only challenged it the day before it was due to be heard.
Judge Halliwell said the bid to adjourn was made 'in the hope something will turn up'. He added: "There's no good reason to believe that the allegations can be properly substantiated when these matters are investigated in the manner sought."
Mr Clarke KC said the cost of the breaches was 'not substantial' as the property had now been sold, and that the compensation sought was to cover the cost of 'dealing with the breaches'. The KC criticised the attempt to adjourn the case, saying it had only been lodged the day before. He also criticised the 'general allegations' of fraud and dishonesty which had been made 'without specificity'.
The barrister said the application had been 'so much froth'. Mr Clarke said Mr Rose was subject to an 'outstanding costs order' by another court totalling £205,000.
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