F&C Asset Management avoid indemnity costs
27th June 2012
A High Court judgement which ordered the investment group F&C Asset Management to pay indemnity costs following a bitter legal dispute has been overturned by the Court of Appeal (CoA).
F&C were involved in a lengthy row with Francois Barthelemy and Anthony Culligan, two hedge fund managers, after their partnership ended acrimoniously following the credit crunch of 2008.
A High Court case ended with the company being told to pay £4m to each of the individuals concerned after F&C had rejected a put option that would have allowed Barthelemy and Culligan to rid themselves of their stake in the group.
However, the CoA upheld an action from those with lawyer jobs representing F&C which claimed that the costs order was unjustly imposed because the business had not acted improperly at any point.
Making the ruling, Lord Justice Davis stated that the High Court had been wrong in its assertion that the instruction could be made under Part 36 of the Civil Procedure Rules.