On 8th December 2011, on the basis that no debt existed, solicitor Andrew Upton provided Trustee Iain Forsyth with a comprehensive eight page submission requesting early rejection of an unsubstantiated Greenock Morton Supporters’ Trust claim against Jim Gallacher.
The Trustee refused!
The Accountant in Bankruptcy confirmed later to Mortonjag that the Trustee was at liberty to invalidate the G.M.S.T. claim at any point during the administration.
HE WAS NOT ‘OBLIGED’ TO AWAIT THE END OF THE TRUST DEED. HE CHOSE TO DO SO -A CHOICE WHICH DISADVANTAGED HIS CLIENT AND THE TRUE CREDITORS AS ANDREW UPTON HAD CAUTIONED.
Had Iain Forsyth taken half an hour to consider objectively the contents of Andrew Upton’s submission, he would inevitably have rejected the Trust’s unsubstantiated claim. His decision not to do so was ill-judged and biased in favour of the G.M.S.T.
Mr. Forsyth had foolishly succumbed to the ‘undue influence’ of fellow insolvency practitioner AND NON-CREDITOR Nick Robinson. In so doing, he abandoned a duty of care for his client and true creditors.
Robinson had ‘got to him’, and there is abundant evidence to suggest that those two colluded in order to secure a successful outcome for the G.M.S.T. That will be discussed in detail in later blogs.
Many of Iain Forsyth’s subsequent communications were virtually unintelligible, and he repeatedly contradicted himself, especially after the Accountant in Bankruptcy became involved.
His obstructive gobbledegook was designed to cloud issues and add to existing confusion, but from the outset he did make one thing clear. He emphatically stated that as Trustee, he ‘had no interest in’ the court action and that the Trust was free to proceed.
On that basis, Harper Macleod were instructed to recall the sist and seek dismissal of the G.M.S.T.’s incompetent action. That had been the original intention when Jim Gallacher’s Trust Deed was trawled up by Robinson.
It was critical, however, that the Sheriff fully understood that the Trust Deed was irrelevant to the court case, and Iain Forsyth had repeatedly stated informally that ‘it was in the Trust’s best interests to continue with the action’. He had also approved a £3,500 bond guaranteeing the Trust’s costs should it succeed.
Accordingly, Jim Gallacher arranged a meeting with his Trustee, hoping to persuade him to recommend in writing that the Trust continue the court action on the basis that that would be in ‘everybody’s best interests’. Those had been the Trustee’s exact words.
That meeting took place on Tuesday 10th January 2012, and in email to Mortonjag immediately afterwards, Jim Gallacher commented:
He kept saying ‘Robinson knows already that it’s in his best interests to pursue through the courts’.
When I asked him if he knew NIck Robinson he replied that ‘He had never met him, but had heard of him’.
Despite that amusingly evasive understatement, Jim left the meeting with a clear impression that his Trustee was about to recommend that the Trust continued with the Small Claim. Not at all!
Forsyth had deliberately avoided the issue!
It remained critical that the Trustee put in writing his repeated view that it was in the Trust’s best interests to have the case heard, and so Jim authorised Mortonjag to deal directly with the Trustee.
Mortonjag could hardly have asked him more politely to confirm in writing what he had previously stated repeatedly. Once again, he evaded an answer!
At least the slippery bean counter stressed for the umpteenth time that there was NOTHING to stop the court case being heard.
That was entirely at odds with Nick Robinson’s skewed version of insolvency law as applied to non-debtors which he continued to ram down the throats of Blair & Bryden LL.P., and those ‘guys’ on the Trust forum!
Without that essential input from the Trustee, the attempt to recall the sist and have the evidence heard by the court failed. On 12th March 2012, Mr. Upton noted:
‘Mr Harvey of Blair & Bryden submitted that it was a waste of court time and money to recall the case when a Trustee had been appointed under a Trust Deed, and the pursuer was content to await the adjudication of the Trustee in that case.’
Sheriff Herald kept the action sisted to allow the claim to be decided by the Trustee, which ‘put matters to bed’ until the end of the Trust Deed.
That was exactly what Nick Robinson had sought when he incepted his shameless scam.
THE TRUST DEED DRAWS TO A CLOSE, JIM GALLACHER CONTACTS HIS TRUSTEE , AND A MYSTERIOUS DOCUMENT IS DISCOVERED!