High Court battle ends in £87,000 victory for 2plan

2plan, which is based in Bridgewater Place in Leeds, was awarded the sum after it pursued a claim against Peter and Adele Trotman, formerly of Source Financial.

According to Rachel Crookes of law firm Keeble Hawson, who represented 2plan, the claim related to a failure by Source and Mr and Mrs Trotman to comply with contractual obligations following 2plan’s acquisition of Source’s IFA (independent financial advice) business in 2009.

2plan also faced a £500,000 counterclaim from Peter Trotman alleging fraudulent misrepresentation. Mr Trotman claimed that 2plan’s chief executive, Chris Smallwood, and managing director, Chris Davies, had promised him a lucrative position on the board to entice him to part with the Source business, when they had no intention of appointing him to such a position.

However, 2plan had always maintained that the offer to join the board was subject to a minimum number of Source’s financial advisers transferring to 2plan.

According to Ms Crookes, as negotiations progressed it became clear that Peter Trotman could not deliver what he had initially suggested. Ms Crookes said the deal was re-negotiated and a contract was signed which provided Mr Trotman with a self-employed position but not a board directorship. Ms Crookes, who is head of the litigation and dispute resolution team in the Leeds office of Keeble Hawson, said: “Following a five day trial at Leeds High Court I’m delighted that 2plan were awarded all sums claimed from Mr and Mrs Trotman and Mr Trotman’s counterclaim was dismissed.”

Mr Smallwood said: “We are delighted with the judgement which has vindicated our position.”

Peter Langan, the mercantile judge for the North Eastern Circuit, said in his ruling: “This case has received some publicity in the specialist financial press, which is unsurprising in view of the fact that allegations of fraud have been levelled at the two senior executives of a company which is well-known in the field in which it operates. I hope that there will be no doubt as to the message which should go out from this judgement: the allegations are wholly without foundation and there is no reason for anyone to suppose that the conduct of Mr Smallwood and Mr Davies with regard to the Source acquisition was in even the smallest degree dishonourable.”

Ms Crookes added: “Fraudulent misrepresentation is an extremely serious allegation. In the financial services industry companies rely heavily upon the reputations of their staff and Mr Smallwood and Mr Davies have built up excellent reputations over many years.”

A spokesman for Peter and Adele Trotman said they did not wish to comment.