Gibson Dunn defends GFH role after jailed ex-GC claims conflict
Gibson Dunn & Crutcher has defended its representation of Dubai-based private equity firm GFH Capital, after the client's former general counsel accused the firm of having a conflict of interest.
June 26, 2014 at 09:42 AM
4 minute read
Gibson Dunn & Crutcher has defended its representation of Dubai-based private equity firm GFH Capital, after the client's former general counsel accused the firm of having a conflict of interest.
David Haigh, the former managing director of Leeds United and one-time GC of GFH, has taken to Twitter to make the accusation against his former employer's lawyers.
Haigh is currently in jail in Dubai, having been arrested on 18 May after GFH accused him of committing fraud, embezzlement and money laundering while he was employed at the bank.
"David believes that GFH and its lawyers Gibson Dunn are deliberately misusing the Dubai processes to frustrate his right to defend himself against GFH's commercial claim to which he believes his email and phone records contain a full defence," said Haigh, in a statement published yesterday (25 June) on his behalf.
"He believes this to be in breach of his human rights and is shocked that Gibson Dunn – a law firm which he considers to be deeply conflicted in its present actions against him through its past work and professional relationships with him – is associated with such a process."
According to his spokesperson, Haigh "is allowed only minimal access to his lawyers whom he is currently unable to pay because of the freezing by the DIFC, at the request of GFH, of his bank accounts".
GFH denied this claim, stating that the world-wide freezing order was "applied for by GFH Capital and granted on the basis that Mr Haigh is permitted access to funds to pay his lawyers".
Gibson Dunn's litigation team is being led by partner Peter Gray, described by Haigh's spokesperson as "for many years a friend, legal adviser and business partner of [Haigh's]".
In an email to Legal Week, Gray called the conflict allegations "untrue and defamatory".
"GFH Capital considers it highly inappropriate that David Haigh continues to brief the media with repeated but vague allegations of impropriety against GFH Capital and its lawyers, but asserts before the DIFC Court that he is unable to answer GFH Capital's claim against him," said a GFH spokesperson, while declining to comment on Haigh's "general allegations".
However, GFH did say that an "unparticularised allegation" of a conflict of interest on the part of Gibson Dunn, first raised by Haigh in a court hearing on 3 June, had not been pursued.
"Mr Haigh's lawyers were invited by the Court to make an application if they wished to pursue those allegations," said GFH. "To date, no such application has been made."
The company also said Haigh is currently "detained in Dubai by judicial authority rather than police action, following applications for bail on his part".
GFH says Haigh misappropriated $5m (£3m) of the private equity company's funds "by creating or procuring the creation of false invoices and procuring payment of those false invoices", charges with Haigh denies.
GFH says Murray's clerk only raised two separate fee notes, for £8,350 and £3,505 respectively, during the period, and that the £1.3m of invoices were sent to an account not owned by Murray.
Haigh took over as the managing director of Leeds in July 2013, following its acquisition by Dubai based-GFH. He resigned from his post at GFH in April after Leeds was sold to Italian businessman Massimo Cellino.
Prior to his time at GFH and Leeds, Haigh worked in an in-house role at Barclays, and in private practice at Thomas Eggar, DLA Piper and Akin Gump.
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