Brewin Dolphin has filed a law suit against Charles Stanley related to the mass departure of its 18 staff last March, who left to set up a Leicester base for Charles Stanley.
Brewin will also take legal action against six former senior employees from the office, including ex-branch head Ed Cufflin, four other divisional directors as well as its business development manager.
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The legal action will focus on any losses that may have arised from client money following the departure of staff at Brewin Dolphin to Chalres Stanley.
The lawsuit alleged that Brewin’s former employees have violated their contracts as well as their fiduciary and confidence obligation and collaborated with Charles Stanley to incur losses to Brewin’s business by unlawful means.
Additionally, Brewin claimed that the six employees acted as recruiting sergeants, resulting in the departure of the 12 other team members.
Charles Stanley has denied the claims and said it will vigorously resist them.
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By GlobalDataThe High Court said that it will make a claim for exemplary damages to be paid so that Charles Stanley will not make any profit from the former Brewin Dolphin staff.
Stephen Ford, head of investment management, Brewin Dolphin, said: "As you would expect we will act to protect our business and our clients’ interests, which are paramount and where we have been advised that contractual obligations have been broken."
Ford added that Brewin Dolphin was not prepared to make any further comment while the matter is subject to court proceedings.
