The largest ever action against solicitors in Scottish legal history has been settled out of court, with Aberdeen entrepreneur Bob Kidd accepting a “substantial” sum as part of a confidential agreement with Burness Paull whom he was suing for £160 million.
The settlement was announced in the Court of Session yesterday. The sum was not disclosed but is believed to be a small proportion of the claim.
Mr Kidd took his former solicitors to court over losses he claimed to have sustained following the sale of part of his interest in a company.
He had instructed Paull & Williamsons (P&W), which later became part of Burness Paull, in 2008 to act as solicitors in connection with the proposed sale of part of his shares in ITS Tubular Services (Holdings) Limited (ITS) to a US equity firm called Lime Rock Partners.
It later emerged that while one P&W partner was advising him on the deal, another P&W partner was covertly advising Lime Rock.
Mr Kidd argued that he had lost millions of pounds due to the law firm’s conduct. He was awarded an interim £1 million payment of expenses at an earlier hearing in the Court of Session last September.
A spokesperson for Burness Paull said: “The dispute between Robert Kidd and Paull & Williamsons LLP, arising out of historical events which occurred before its merger to form Burness Paull, has been resolved between the parties. The terms of the agreement are confidential. No further comment will be made concerning this matter.”