The Lord Chancellor v Blavo & Co Solictors Ltd & Anor [2018] EWHC 3556 (QB) (21 December 2018)

The Lord Chancellor v Blavo & Co Solictors Ltd & Anor [2018] EWHC 3556 (QB) (21 December 2018)

The court found that Blavo & Co. Solicitors Limited made fraudulent claims for legal aid payments in respect of thousands of mental health tribunal cases that did not take place, as evidenced by the lack of supporting files, audit anomalies, and the absence of corresponding records in the HMCTS MARTHA database. The firm failed to provide files to substantiate the claims despite repeated requests and opportunities. The Lord Chancellor was entitled to recover the sums paid out for these non-existent cases. John Blavo, as guarantor under the deed of guarantee and indemnity, was held personally liable for the sums due from the law firm.

Citation
[2018] EWHC 3556 (QB)
Parties
Claimant: The Lord Chancellor; First Defendant: Blavo & Co. Solicitors Limited (In Liquidation); Second Defendant: John Blavo
Jurisdiction
England and Wales
Judgment Date
21 December 2018
Procedural Posture
Civil Claim for Recovery of Public Funds (legal Aid) / High Court Trial Judgment
Outcome
Judgment for the Claimant
Legal Topics
Legal Aid, Fraudulent Claims, Contractual Liability, Guarantee and Indemnity, Audit and Compliance, Public Funds Recovery
Civil Law Contract Law Fraud Public Law Legal Aid Fraudulent Claims Contractual Liability Guarantee and Indemnity +2 more

Case Brief

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Parties

The Lord Chancellor

Claimant

Blavo & Co. Solicitors Limited (In Liquidation)

First Defendant

John Blavo

Second Defendant

Procedural Posture

Civil Claim for Recovery of Public Funds (legal Aid) / High Court Trial Judgment

Legal Issues

  1. 1 Whether Blavo & Co. Solicitors Limited made fraudulent claims for legal aid payments for non-existent mental health tribunal cases
  2. 2 Whether John Blavo is liable under a deed of guarantee and indemnity for sums paid to the law firm
  3. 3 Whether the Lord Chancellor is entitled to recover over £22 million in public funds from the defendants

Ratio Decidendi

The court found that Blavo & Co. Solicitors Limited made fraudulent claims for legal aid payments in respect of thousands of mental health tribunal cases that did not take place, as evidenced by the lack of supporting files, audit anomalies, and the absence of corresponding records in the HMCTS MARTHA database. The firm failed to provide files to substantiate the claims despite repeated requests and opportunities. The Lord Chancellor was entitled to recover the sums paid out for these non-existent cases. John Blavo, as guarantor under the deed of guarantee and indemnity, was held personally liable for the sums due from the law firm.

Court Disposition

Judgment for the Claimant

Orders

  • Blavo & Co. Solicitors Limited and John Blavo are jointly and severally liable to repay £22,131,771.45 to the Lord Chancellor.
  • Interest and costs awarded to the Claimant.