Now Duff and Phelps to sue Crown Office for millions
Finance giants say wrongful arrests have caused ‘reputational damage’
A FINANCE firm whose staff were arrested during a “malicious” Rangers fraud probe want a multi-million pound compensation payout.
Duff & Phelps, which is based in New York, is to sue the Crown Office for “reputational damage”.
The firm has told the Dean of the Faculty of Advocates, Roddy Dunlop QC, to pursue the action at the Court of Session in Edinburgh.
The firm says it’s suffered significant lost earnings since employees David Whitehouse and Paul Clark were wrongfully arrested.
The pair, who have already won £21million in damages from prosecutors, were made administrators of Rangers in February 2012 after the club went bust.
They were accused of wrongdoing but cleared. Ex-lord advocate James Wolffe apologised to them “for a very serious failure in the system of prosecution”.
Now, Duff & Phelps is also seeking compensation.
Yesterday, the case called before judge Lord Tyre.
During the hearing, Mr Dunlop said he believed his client had the right to sue, adding: “The defender is getting at ‘we didn’t prosecute you Duff & Phelps so where’s the beef ?’
“The answer to that we give in our outline argument. In my submission, that is a crisp question of law.”
Court papers state Duff & Phelps is seeking £25million from the Crown Office.
Mr Dunlop told the court he wished to use information obtained from the litigation raised by Whitehouse in the action.
But he said he was looking for guidance on the issue as he is unable to use the information without the approval of the Crown Office and the judge as he risked placing himself in contempt in court.
Lord Tyre continued the case and a new hearing is expected in November.
The action is the latest development in the controversy involving prosecutors and those who were arrested during a police probe into Craig Whyte’s takeover of Rangers.
The club’s assets were sold to a consortium led by Charles Green, who became Rangers’ chief executive.
He received a £6.4million settlement from the Crown Office last week for being wrongly prosecuted.
David Grier, an adviser at Duff & Phelps during the takeover, was also arrested but cleared. He’s seeking a £9million settlement.