Two departing Halliwells partners consider legal action against firm

Halliwells is facing potential legal action from two departed partners, it has emerged.

The duo, one of whom is still on gardening leave, have independently instructed law firms and counsel to seek advice in relation to potential disputes with the firm.

Insurance specialist and former Manchester dispute resolution chief Chris Phillips is set to launch a claim against Halliwells over the terms of his exit. Phillips, who also served as a member of Halliwells' strategic board, was asked to leave the firm more than two years ago but is in dispute over the terms of his notice period and gardening leave.

Now a consultant with Keoghs in Bolton, Phillips has instructed Liverpool firm Mason Jones and counsel Roderick L'Anson Banks from the Partnership Counsel. Phillips is also seeking advice on a number of other issues, including some relating to the terms of Halliwells' partnership deed, although no further action has been taken so far.

Separately, London corporate recovery partner Michael McCarthy – currently on gardening leave – has instructed DLA Piper's national employment head, Tim Marshall, and L'Anson Banks as he seeks advice over potential action relating to a number of issues, including departure terms.

McCarthy joined Halliwells in 2007, having previously served as head of insolvency with Richards Butler prior to its merger with Reed Smith.

In addition, several other partners have sought legal advice in relation to their departure terms without issuing claims.

News of the potential action comes after Legal Week reported that Halliwells is holding some of its departing partners to 12-month notice periods in the wake of a number of resignations. According to filings with Companies House, some 32 partners have resigned or been terminated from Halliwells since last November. Halliwells declined to comment.

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