THE GLOBAL company responsible for running Rangers when it financially imploded are claiming misconduct in public office while pursuing a £25m claim against Scotland's most senior law officer over damage to their business over the malicious club fraud case scandal.
But the Lord Advocate is questioning the relevancy of the action by Duff and Phelps which comes after it was admitted their employees David Whitehouse and Paul Clark were maliciously prosecuted in their action taken against prosecutors and the police.
Both settled out of court in December and the Crown Office confirmed both men were awarded £10.5m damages, while legal costs will be at least £3m.
The new case means that the taxpayer faces a bill of over £110m for the wrongful prosecutions by the Crown Office and Police Scotland.
Mr Whitehouse, Mr Clark and five others were subjected to detention and criminal proceedings in relation to fraud allegations in the wake of Craig Whyte's disastrous purchase of Rangers from Sir David Murray for £1 in May 2011 and its subsequent sale before a judge dismissed all charges.
The fraud case arose after the club under Mr Whyte went into administration nine months after he bought it, with debts soaring over £100m while the team ended up relegated to the bottom rung of the Scottish football pyramid.
Roddy Dunlop QC for Duff and Phelps said: "Plainly, the basis for this case is not malicious prosecution, Duff and Phelps weren't prosecuted.
"But what we see is, misconduct in public office."
Mr Dunlop referred to a Roman law in which "if you throw a spear at A and hit B you are still liable."
"And when we say that simple reasoning applies equally here, is that genuinely resisisted, and if so on what basis, because unless there is a coherent basis for resisting, we suggest this is an appropriate case for summary decree at least," he said.
READ MORE: Rangers malicious fraud case scandal sees taxpayer face over £110m bill
A summary decree is an order which the court can grant if a party successfully persuades the court that there is no real defence to an action even though a defence has been presented.
Gerry Moynihan QC for the Lord Advocate indicated to Lord Tyre that he would be seeking dismissal of the case and that there were serious questions over quantifying the damages alleged to have been inflicted.
He said: "There is a legal argument to be had about whether the grounds of liability for malicious prosecution, are the same as those for misfeasance."
He added: "I can indicate to your Lordship that malice at the petition stage is disputed the relevancy of the pleadings in that regard, will be disputed. Causation, the absence of averment of sufficient causation is disputed.
"And the total consequence of quantification... is a basis upon which I will be seeking dismissal of the action full stop."
Five of the seven men charged in relation to Rangers fraud cases have been pursuing compensation complaints over wrongful arrest against either Police Scotland, the Crown Office or both with a collective claim now standing at £113m.
Court of Session judge Lord Tyre has also ruled that David Grier, a Duff and Phelps executive that there was no “probable cause” to prosecute Mr Grier who is also seeking £5m damages from the Lord Advocate and £9m from Police Scotland.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel