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CompliNEWS   |   Financial Service Intelligence Watch Wednesday 08 May 2024

Judge dismisses sacked Deloitte partner's challenge

Legalbrief Today Issue 4849

A partner at Big Four accountancy firm Deloitte who was sacked for alleged bullying and large expenses claims has been ordered to pay £125 000 in legal costs for a one-day trial, after his challenge to the dismissal failed. According to a Law Gazette report, David Joseph, a forensic services partner at Deloitte’s Zurich office, was issued with a notice of retirement last year following an investigation into his conduct. It was widely reported that the firm found Joseph to be ‘bullying’ and ‘manipulative’, and that he created a ‘toxic working environment’. The firm also criticised Joseph’s use of expenses. Joseph went to the High Court to force Deloitte to convene a meeting of its 1 700 equity partners to review his dismissal. His claim was rejected, with the judge ruling that the request for a full partner meeting fell outside the time permitted. Joseph seeks to appeal the decision. In Joseph v Deloitte, Justice Whipple ordered that Joseph provide £125 000 to Deloitte by way of interim payment. The Big Four firm has racked up a total of £300 724 in legal costs, which Whipple called ‘rather excessive’. Meanwhile, Joseph has spent £138 225 on legal fees so far, according to the judgment. Under the notice of retirement Joseph’s partnership will terminate on 31 January.

Full Law Gazette report

Judgment (in French)