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)

Blavo & Co. Solicitors Limited made thousands of dishonest claims for legal aid payments for mental health tribunal cases that did not exist, as evidenced by the lack of supporting files, unreconciled data with HMCTS, and fabricated documents. The Lord Chancellor was contractually entitled to nil assess the unsupported claims and recover the sums paid. John Blavo, as guarantor, is liable for the sums due under the deed of guarantee and indemnity.

Citation
[2018] EWHC 3556
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 Recovery Action (contract/fraud) / High Court Trial Judgment
Outcome
Judgment for the Claimant
Legal Topics
Legal Aid Fraud, Contractual Liability, Guarantee and Indemnity, Public Funds Recovery, Audit and Compliance, Evidence Assessment
Contract Law Fraud Public Law Legal Aid Fraud Contractual Liability Guarantee and Indemnity Public Funds Recovery Audit and Compliance +1 more

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Parties

The Lord Chancellor

Claimant

Blavo & Co. Solicitors Limited (in liquidation)

First Defendant

John Blavo

Second Defendant

Procedural Posture

Civil Recovery Action (contract/fraud) / High Court Trial Judgment

Legal Issues

  1. 1 Whether Blavo & Co. Solicitors Limited made dishonest claims for legal aid payments for non-existent mental health tribunal cases
  2. 2 Whether John Blavo is contractually 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 based on nil assessment of claims

Ratio Decidendi

Blavo & Co. Solicitors Limited made thousands of dishonest claims for legal aid payments for mental health tribunal cases that did not exist, as evidenced by the lack of supporting files, unreconciled data with HMCTS, and fabricated documents. The Lord Chancellor was contractually entitled to nil assess the unsupported claims and recover the sums paid. John Blavo, as guarantor, is liable for the sums due under the deed of guarantee and indemnity.

Court Disposition

Judgment for the Claimant

Orders

  • Blavo & Co. Solicitors Limited and John Blavo are jointly and severally liable to repay £22,731,521.38 to the Lord Chancellor.
  • Interest and costs awarded to the Claimant.