Dechert has lost a High Court challenge to its £16m legal bill for 23 months’ work assisting a FTSE 100 mining company with an internal governance review for the purpose of “self-reporting” to the Serious Fraud Office following allegations of fraud and bribery by a whistleblower.
Ruling in Eurasian Natural Resources Corporation (ENRC) v Dechert, Master Jason Rowley at the Senior Courts Costs Office said the “vast discrepancy” between Dechert’s estimates and the costs actually billed was a “special circumstance” that justified closer scrutiny. He noted the estimates were based on “highly unrealistic” assumptions as well as being “brief”, “only produced reactively” and “invariably underestimates”.
ENRC said it would now continue its claim for recovery of costs against Dechert in the High Court.
A Dechert spokesperson said: "We look forward now to proceeding with the costs assessment process."
