Eversheds Sutherland fees for advice on transfer of Carillion contracts revealed
Freedom of information request reveals fees for post-Carillion collapse work for Network Rail
July 11, 2018 at 07:17 AM
2 minute read
The original version of this story was published on Law.com
Evershed Sutherland was paid almost £500,000 for its work for Network Rail in the wake of the collapse of construction giant Carillion, a freedom of information (FOI) request has revealed.
The firm was brought in to advise on the transfer of Carillion contracts to Amey Rail, a deal that saved more than 600 jobs following the company's administration.
Eversheds was paid £450,550.34 for its work on the transfer of the contracts, which included the Midland Mainline Upgrade and the North West Electrification Programme, and which was carried out over just two weeks. The fees were paid for four months of advice given by the firm.
The FOI also revealed that Network Rail was advised by panel firms Dentons and Addleshaw Goddard in the light of the collapse.
Meanwhile, a separate FOI has revealed that Mayer Brown was paid £13,148.40 by the Pension Protection Fund for advice in relation to 13 pension schemes following the Carillion collapse. The trustees of 10 of the company's pension schemes appointed DWF, while the trustees of three schemes turned to Osborne Clarke.
Legal Week also revealed that Dentons took home £100,000 in fees for nine months of advice to the Cabinet Office following Carillion's administration, in the same week that a report by The National Audit Office said law firms are expected to earn a total of £20m for their work on the construction giant's insolvency.
In May, the parliamentary inquiry into the collapse accused magic circle law firms including Slaughter and May, Clifford Chance (CC) and Freshfields Bruckhaus Deringer of "squeezing fee income" from the company as it collapsed through "recklessness, hubris and greed".
Separately, a letter released by the firm last month revealed that Slaughters billed Carillion a total of £8.4m for advice in the 18 months prior to its liquidation in January this year.
Eversheds declined to comment. Mayer Brown was contacted for comment.
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