Sark Electricity Limited is being sued for more than £180,000 by its own former lawyers over unpaid legal fees.
International law firm Collas Crill said Alan Witney-Price, SEL’s Managing Director, had agreed to pay £5,000 a month last September to settle the debt, which relates to legal work carried out between 2024 and 2025.
However, Mr Witney-Price claimed in court he later discovered that some of the legal advice his firm had received had been “negligent” and so the firm had therefore not paid the money.
Speaking via a video link, Mr Witney-Price alleged Collas Crill had failed to advise him correctly on several legal matters, including the potential legal costs he could recoup, and the impact of human rights law on one of the firm’s case.
Both sides were in court after Collas Crill had applied for SEL’s defence and counter claim to be struck off as having an “unrealistic” chance of success and for a summary judgement to be made.
Bailiff Richard McMahon said he reserved judgement and would let both sides know his decision in writing “in due course”, after considering their arguments.
If he decides in SEL’s favour there will be a trial at a later date, where more evidence would be heard.
SEL is currently embroiled in several legal battles, including with Sark’s parliament, Chief Pleas, which is trying to buy the electricity company through a compulsory purchase order.
Mr Witney-Price, who has previously gone by the name of Alan Jackson, said the troubled electricity company had received nearly £1m in invoices from Collas Crill since the two firms started working together nearly 10 years ago.
He said the electricity company had paid more than £800,000 to the law firm, prior to the disagreement.