Sark Electricity Limited (SEL) was ordered to pay its former lawyers more than £180,000 in unpaid fees, but the firm could yet avoid paying the interest attached to the bill.
Collas Crill sued SEL over the unpaid legal fees, winning the case in September. However, enforcement of the judgment was stayed while a separate counterclaim against the law firm continued.
SEL had alleged negligence by the firm, which Collas Crill denied.
Guernsey’s Court of Appeal has now given SEL extra time to appeal the decision over the unpaid fees, but only in relation to the interest and indemnity costs.
Collas Crill acted for Sark Electricity between 2012 and 2025, when AFR was appointed instead.
The firm’s advocates advised SEL in its disputes with the Sark Electricity Price Control Commissioner, and during part of its ongoing dispute with Chief Pleas, which is buying the electricity company through a compulsory purchase order.
SEL’s Managing Director had previously confirmed in court that the company had received nearly £1m in invoices from Collas Crill before the two parted company.
Alan Witney-Price acknowledged paying more than £800,000 to the law firm, but alleged the fees were unreasonable.
The court heard that Mr Witney-Price had been paying £5,000 a month towards the debt. When those payments stopped, Collas Crill took the matter to court.
The former Bailiff, Sir Richard McMahon, found in favour of Collas Crill, ruling that SEL owed £182,558.50 in unpaid legal fees, plus interest understood to be in the region of £35,000.
Judge Dunlop, sitting as a single judge of the Court of Appeal, considered SEL’s application for permission to appeal the findings and has partially allowed it.
He has told SEL it can appeal only the “contractual interest rate applied and the resulting interest award” and “the characterisation of the costs as contractual and consequently indemnity costs”.
Judge Dunlop made clear that SEL has not challenged the principal debt, and that permission has not been granted to reopen any other aspect of the Bailiff’s decision.
SEL remains in private ownership, but the final pieces are being put in place ahead of Chief Pleas’ compulsory purchase of the company and the island’s electricity infrastructure.
The long-running compulsory purchase is still expected to go to court before the end of this year and be completed during 2027.
If it goes ahead, SEL will be bought by Chief Pleas before being transferred into community ownership.
