Leading legal IT supplier Capsoft UK, which provides 40% of all leading firms with software, has sacked three of its top executives. Managing director Terry Lawley, sales director Gary Rodriguez and senior account manager Thomas Callway have all been told to leave the company.

The company has also closed its London office, leaving it with one office in Edinburgh.The sackings follow a series of unsuccessful management buyout attempts – the first headed by Lawley and the second by Rodriguez.

Capsoft UK produces the Hotdocs document generation software for leading UK firms including Clifford Chance and Allen & Overy.

According to a senior company source, Lawley has also stepped down from the post of managing director at Everyform, a spin-off legal services company he launched under the Capsoft UK umbrella, which then demerged last year.

An industry source told Legal Week that Lawley was planning to start a rival legal services venture and that more staff from Capsoft UK were expected to defect to the new company.

Russel Shepherd, chairman of the holding company behind Capsoft UK and Everyforum, said: "I can confirm that Terry has been unsuccessful in trying to buy the company. He was with us for two years, for most of which time he was very useful."

Lawley, Rodriguez and Callway are understood to be preparing to challenge their dismissals at an industrial tribunal.

Until now Lawley and Shepherd have been business partners. The pair left legal services company Laserform two years ago to set up Capsoft UK.