High Court Strikes Out Multi-Million Pound Claim Against KPMG

Background

The High Court, presided over by Deputy Judge Nicola Rushton KC, has struck out a substantial claim brought by Mr Bashar Bin Mahmood against KPMG LLP and Mr David James Costley-Wood. The claim, valued at over £1.2 billion, alleged professional negligence and misconduct during the administration of several insolvent companies between 2008 and 2010.

Previous Proceedings

This claim largely duplicated an earlier claim made by Mr Mahmood against the same defendants in the Central London County Court, which had been struck out in July 2023. The earlier claim was dismissed on the grounds of being without merit, and subsequent appeals were also rejected.

Current Proceedings

The current claim was issued in January 2024, prior to the resolution of Mr Mahmood's appeal attempts in the first claim. The defendants sought to strike out the current claim on the grounds of abuse of process, arguing it was a repetition of the earlier dismissed claim.

Abuse of Process

Deputy Judge Rushton found that the claim was indeed an abuse of process, as it sought to relitigate issues already decided in the previous claim. The judge noted that the first claim had been dismissed after substantive consideration of its merits, thus creating a cause of action estoppel.

Standing to Sue

Further complicating Mr Mahmood's position was the fact that he had been declared bankrupt in 2009, with the bankruptcy discharged in 2012. The judge found that any potential claims arising during the administration period were vested in the Official Receiver, not Mr Mahmood, thus he lacked standing to pursue the claim.

Conclusion

The court concluded that the claim was totally without merit and struck it out entirely. The judge also indicated that a civil restraint order might be considered due to the repetitive and meritless nature of the claims.

Implications

This case underscores the importance of finality in litigation and the court's unwillingness to entertain repeated claims on the same issues. It also highlights the procedural necessity for claimants to have standing before bringing a claim.

Learn More

For more information on professional negligence claims, see BeCivil's guide to English Data Protection Law.