An oil tycoon is to sue his former lawyers and business partners in a legal action worth almost £600million. If successful, it would be the largest payout awarded in Scotland.
Aberdeen man Robert Kidd, 61, is seeking initial compensation of £175million, dating back to 2008, for a business deal involving his North Sea oil and gas drilling firm ITS Tubular Services. But the final payout could be about £580million once interest of eight per cent a year is added.
Kidd’s action is against Aberdeen law firm Ledingham Chalmers, US private equity house Lime Rock Partners and employees of both organisations.
Last month, the Court of Session in Edinburgh gave his compensation case the green light after they threw out a final appeal by Texas-based Lime Rock and Ledingham.
The legal dispute centres on a deal that saw Kidd sell Lime Rock a £34.5million stake in ITS. He retained a majority shareholding but in 2013 the firm went into administration with debts of about £145million.
Kidd previously received a £19million payout from another Scottish firm, Burness Paull, which was involved in the Lime Rock deal. Last year, Kidd also received a separate settlement from Glasgow lawyers Levy & McRae, which represented him in the case against Burness Paull, after claiming he had been over-billed.
At last month’s hearing, Lime Rock and Ledingham claimed Kidd was suing for the same losses which were covered by the earlier £19million settlement with Burness Paull. They were appealing a decision last November at the Court of Session to allow Kidd’s claim to go ahead.
Kidd, who grew up in a council estate in Aberdeen, set up ITS in the late 80s with just £5000. By 2008, the equipment rental firm employed 1000 people and was said to be worth £490million.
Kidd claims the sale left his own shareholding worthless. He believes individuals and companies involved in the deal had a conflict of interest and breached their legal duties to him.
A spokesman said: “Mr Kidd looks forward to progressing his claim.”
Jennifer Young, of Ledingham Chalmers, said: “We believe these allegations are unfounded.”
No one from Lime Rock responded to our request for comment.
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