The Firm Magazine reported today on up to date position re ESTO Collapse and GBA position:-

Which Is: -

"The GBA  are pushing for answers despite Esto collapse"

The President of the Glasgow Bar Association has confirmed that the organisation is still seeking answers to its queries over the propriety and formation of the Esto Law venture, which collapsed this morning two days after its launch.

A letter sent to the Law Society last night expressed “grave concerns about the formation of the…company”, and claimed that prior to its formation, discussions took place between its principals, SLAB and the Law Society of Scotland.Five of Esto’s Directors had been on the Law Society’s legal aid negotiating team.

GBA President Bernadette Baxter confirmed to The Firm this afternoon that a response was still being sought from the Law Society, despite the announcement of Esto’s closure.“Notwithstanding the representative or former representative capacity of five of the Company Directors no disclosure was made to the Profession either of these meetings or of the Director's intentions.

Meanwhile negotiations on behalf of the Profession were simultaneously ongoing also with SLAB and involving at least some of the same individuals,” she said in her letter last night.“We consider it an extraordinary set of circumstances that whilst negotiations were ongoing between the Society and SLAB, that current and former members of the Legal Aid Negotiating Team were engaged in parallel discussions in relation to a commercial venture of their own.

”The questions awaiting response are:-

Was the advice of the Society or any of its conveners sought inrelation to this venture?-

Did any members or former members of LANT use information or access that they acquired as members, in setting up this company?-

If so does the Society consider that such behaviour is appropriate?- In any event does the Society agree, that in principle and asidefrom the present circumstances, it is inappropriate for those exercising a representative role on behalf of the profession to use that position for commercial advantage?-

Are the Law Society of Scotland or members of its Negotiating Team aware if changes are to be made to the Duty Scheme ?-

If they are so aware when did this come to their attention?-

When the Society was consulted did it consider whether it was appropriate for its Negotiating Team to be involved in a venture for commercial gain arising from the very regulations that they had negotiated on behalf of the Profession?

Read More on Esto Collapse

http://www.firmmagazine.com/news/2733/Breaking_News%3A_Esto_Law_collapses_as_Directors_resign_.html