The liquidators of property investment business Tonstate Group are continuing their complicated legal battle to claw back money lost during a bitter family dispute. Law firm Rosling King is now in their crosshairs.
The backgroud dispute is between Tonstate and its former co-owner, property executive Edward Wojakovski. Tonstate claimed he wrongfully took more than £13m from the company. It took legal action against him and in 2019 a judge ordered Wojakovski to pay pack just short of £13m. Tonstate then moved to sue Wojakovski’s legal representative, Mishcon de Reya, for accepting payment in “tainted funds”, alleging the firm had not property checked the source of Wojakovski’s payments.
Mischon settled that claim last year for more than £5m. Separately, however, Tonstate is also suing its own former lawyer, Rosling King, for negligence while handling the early stages of its lawsuit against Wojakovski.
Rosling handled the case from February 2018 until its retainer was terminated in July 2019 and it was replaced with another firm. Tonstate issued court proceedings against Rosling a year later.
The dispute has developed slowly. According to court papers, Tonstate argues that Rosling was “generally aimless” in the conduct of the case prior to being sacked, while also billing more than £4m. It is seeking damages for breach of duty.
In a preliminary hearing in June, a lawyer for Rosling asked the case management judge, Mr Justice Leech, to strike out two-thirds of the case brought against the firm, and for summary judgment.
However, in a ruling handed down yesterday, the judge refused and said the points should be dealt with when the case comes to trial.
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