A lawyer fired after raising concerns about corruption is seeking whistle-blower status in a U.K. lawsuit that could expand the protection to tens of thousands of professionals.
Krista Bates Van Winkelhof was a partner at Clyde & Co. LLP in Tanzania when she reported in 2010 that an African lawyer working in association with the U.K. law firm was involved in bribery and money laundering. She sued after being suspended and expelled from the partnership in 2011 and her case reaches the U.K.Supreme Court for a hearing today.
The U.K. has been cracking down on corruption by British companies overseas, giving prosecutors more power to file bribery charges. A victory for Van Winkelhof would expand whistle-blower rules, which normally protect salaried workers, to highly paid members of professional partnerships.
“This case isn’t just about lawyers,” said Joanna Blackburn, Van Winkelhof’s attorney. “It’s about accountants,hedge funds and a host of other professionals in jobs where whistle-blowing is absolutely vital.”
Clyde & Co., a London-based law firm with 35 offices around the globe, said the case threatens the viability of many limited liability partnerships, exposing them to lawsuits over incidents that occurred as far back as 1998.
Insolvency
“Such claims would cost partnerships significant amounts, rendering some insolvent, were compensation to be payable to those privileged enough to attain partnership,” the law firm said in a statement. The Court of Appeal ruled in favor of Clyde & Co. in 2012.
There are about 60,000 LLPs in the U.K., according to the companies register. The structure is popular because it limits the financial obligations of members in case of lawsuits or if a firm can’t repay its debts.
The suit doesn’t address Van Winkelhof’s underlying allegations, which Clyde & Co. denies, but only whether whistle-blower laws apply to professionals. If she wins, an employment tribunal will decide whether she is owed damages.
Van Winkelhof, who was based in Africa and also spent time in London, earned about 150,000 pounds ($250,000) a year plus a 20 percent share of profits from the joint venture with Tanzanian firm Ako Law, according to the 2012 Court of Appeal ruling in her case.
Money Laundering
She reported in 2010 that the managing partner of Ako was involved in money laundering and had paid bribes to secure work and affect the outcome of cases, according to the ruling. She also says she was subject to sexual discrimination because she told Clyde & Co. she was pregnant.
“The nature of the workplace has changed,” said Cathy James, the chief executive officer of Public Concern at Work, a whistle-blowing charity that is taking part in the Supreme Court case. “The ability of all members of the workforce, including LLP members to speak up about dangers or wrongdoing, without fear of reprisal is important to protect society.”
The case is: Clyde & Co. LLP and another (Respondents) v Winkelhof (Appellant), the Supreme Court of theUnited Kingdom, UKSC 2012/0229
To contact the reporter on this story: Kit Chellel in London at cchellel@bloomberg.net
To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net Peter Chapman