BDO refused appeal to pursue ex-Halliwells partner

BDO has been refused leave to appeal a decision that prevents it from pursuing a claim against a former Halliwells partner.

Acting as liquidators for Halliwells LLP, the firm had pursued former partner Michael Burns for money which it said that he owed to the business relating to drawings, unpaid tax and his share in proceeds from the “reverse premium” that partners were paid for signing a lease on the practice’s Spinningfields HQ.

BDO’s representatives had had sought to argue that Mr Burns breached his fiduciary duty as a partner by accepting a £377,000 sum from the reverse premium deal and was therefore not entitled to any protection a retirement deed was offered.

However, Mr Burns’ legal team successfully argued that he was covered by the retirement deed having left the firm in September 2009 – nine months before the company was placed into administration in July 2010.

The judge, Justice Warren, upheld its argument in April and BDO was refused leave to appeal his decision in the High Court yesterday. The firm now has to decide whether to pursue its case in the Court of Appeal.

Mr Burns, who is now at DLA Piper, was represented by John Lord at law firm Irwin Mitchell.