FOXFORD: DIRECTORS CLEARED OF SHREDDING FILES ON AN ‘INDUSTRIAL SCALE’

A top lawyer’s firm shredded documents on ‘an industrial scale’ when another company presented them with 10,000 invoices, a tribunal was told.

Staff at Birchall Blackburn did not accept they were liable for the bills, which totalled up to £5 million, the Solicitors Disciplinary Tribunal heard.

The documents, which were in 30 lever arch files were simply destroyed in a ‘bizarre and unpredictable event.’

‘It all seems to be a bit of a mystery, but what we do have is shredding on an industrial scale,’ said Geoffrey Williams for the Solicitors’ Regulation Authority.

Company directors Moira Boyce, 50, and Michael Foxford, 49, faced allegations they had wrongly destroyed the documents.

In a separate charge Boyce admitted she had not properly informed miners and their families, who were claiming compensation for respiratory disease, about how to take their case forward.

A government scheme had been set up to ensure claimants got all the compensation they were due without money being deducted by the lawyers.

But 1,000 potential clients who came to Birchall Blackburn were not made fully aware of the options open to them.

They were told of a scheme operated by Birchall Blackburn in which 10 per cent of the total costs was deducted from the settlement as a ‘success fee.’

Mr Williams said: ‘Under the government scheme every claimant was guaranteed to receive every penny of compensation.

‘Solicitors were duty-bound to recommend this scheme.

‘For a time Mrs Boyce did not do that. Mrs Boyce committed 1,000 clients to a situation where they were legally obliged to suffer a success fee.’

Only a few clients were actually charged the success fee and the amounts were small, Mr Williams admitted.

Birchall Blackburn which has its headquarters in Avenham Street, Preston, has since refunded the success fees and dishonesty was alleged against anyone at the firm.

The firm also did not keep clients properly informed on an insurance scheme in which the company had an interest.

Boyce admitted failing to act in the best interests of her clients in relation to the success fee.

She and Foxford admitted failing to make full disclosure to clients about the insurance scheme.

A third solicitor at the firm John Didsbury, 52, was cleared of that allegation.

Boyce and Foxford were cleared of wrongly destroying the documents.

All three lawyers had previously been before the tribunal when an employee, who was subsequently jailed, mis-sold a high risk investment scheme. 

Tribunal chairman David Leverton said there was no evidence that the partners knew anything about the destruction of the 10,000 invoices.

‘This incident has been rightly described as  bizarre and unpredictable event,’ he said.

‘There is no evidence as to precisely what has happened in this case.

‘It is extremely unfortunate that these invoice were dumped in this firm for which they had no liability.’

Boyce was fined £2,500 for not acting in the clients’ best interests and she and Foxford were fined £1,000 for failing to properly disclose details of the insurance scheme.

In addition the firm was ordered to pay costs of £15,000.
ends