A businessman can continue with a £20m counterclaim for negligence against a City law firm suing for fees of £194,000, but his bankrupt business partner cannot, the High Court has ruled. “The initial period of inactivity was the fault of CYK and the court, at least principally, rather than of Mr Davis or his co-defendant Mr Baker.” CYK later acted for Mr Davis and Mr Baker, who sued IBRC in October 2020 for misrepresentation and breaches of duty. HHJ Johns said Mr Baker’s counterclaim fell to be struck out unless it was a partnership asset, which would give him an interest in the litigation. The application was made on the basis that Mr Davis had not informed the law firm of Mr Baker’s bankruptcy, which CYK said was a failure to comply with the overriding objective.