2plan awarded £87k in case against IFA

Openwork-owned adviser 2plan has been awarded more than £87,000 after winning a High Court battle against the husband and wife owners of an IFA business acquired by the company in 2009.

2plan had accused Peter and Adele Trotman, formerly of Source Financial, of failing to comply with contractual obligations following 2plan's acquisition of Source's IFA business in 2009.

The national IFA also faced a £500,000 counterclaim from Peter Trotman alleging fraudulent misrepresentation.

Trotman claimed that 2plan's CEO, Chris Smallwood (pictured), and managing director, Chris Davies, had promised him a lucrative position on the board to entice him to part with the Source business, when they had no intention of appointing him to such a position.

However, 2plan maintained that the offer to join the board was subject to a minimum number of Source's financial advisers transferring to 2plan.

Moreover, as negotiations progressed and it became clear that Peter Trotman could not deliver what he had initially suggested, the deal was re-negotiated and a contract was signed which provided Trotman with a self-employed position but not a board directorship.

Following a five day trial at Leeds High Court, 2plan has been awarded all sums claimed from Mr and Mrs Trotman and Mr Trotman's counterclaim was dismissed.

Chris Smallwood, CEO of 2plan, said: "We are delighted with the judgment which has vindicated our position.

"In light of the nature of the allegations made against 2plan and its directors, it was extremely important to us to prove that we are honest individuals who conduct business in good faith. Today's judgment has done just that."