City firm behind BHP litigation faces legal action over unpaid barrister fee claims
A barrister for the law firm behind the record BHP litigation has alleged in a £2.6m lawsuit that the firm failed to pay him and now faces a counterclaim.
Ibar McCarthy, a barrister at Normanton Chambers, alleged City law firm Pogust Goodhead did not pay him for his work on the £36bn litigation against mining giant BHP for the collapse of the Mariana dam in the south-east of Brazil, which killed 19 people in 2015.
McCarthy was instructed on a full-time retainer agreement with Pogust Goodhead for the trial, the largest group action case in English history, and is claiming Pogust Goodhead breached its contractual obligations under a conditional fee arrangement, commonly known as a no-win, no-fee agreement.
McCarthy is also seeking damages in relation to the contractual claim, according to a claim form seen by Morning Wire.
A spokesperson for Pogust Goodhead told Morning Wire the firm “is aware of the claims being advanced” by McCarthy and said, “we reject the allegations against the firm and will defend any proceedings robustly.”
“Mr McCarthy has chosen to bring these matters before the High Court. [Pogust Goodhead] will therefore ensure that the court is presented with the full factual and evidential background, rather than the partial account now being advanced.”
“The firm intends to defend the claim and pursue its own counterclaim,” the spokesperson said.
They added the firm “has significant and longstanding concerns of its own regarding Mr McCarthy’s conduct and his association with the firm’s former management” which “extend to the circumstances surrounding his relationship with the firm, the financial arrangements entered into under the previous management and matters concerning Normanton Chambers.”
Patron Law, the firm acting for McCarthy in this case, declined to comment on Pogust Goodhead’s counterclaim comment.
High Court rejected pause on dispute
After years of litigation, Pogust Goodhead secured a landmark High Court victory last November, with the court ruling that BHP was liable for the 2015 Fundão dam collapse. The Court of Appeal in May refused the mining giant’s application for permission to appeal.
Last week, news broke that the Pogust Goodhead claims’ client committee requested a change of law firm from Pogust Goodhead to US firm Bailey & Glasser. On Friday, the High Court rejected an application from Bailey & Glasser to pause the BHP litigation.
This follows Morning Wire revealing last week that Pogust Goodhead’s ousted chief executive, Thomas Goodhead, led a bid to wrest the £36bn case from the firm, where he previously served as a director, to Bailey & Glasser, where he was briefly a director.
Ibar McCarthy, Normanton Chambers, and BHP were contacted for comment.