Developer will take Mortgage27 case to bitter end
Ben Brown took on Client Data Systems in an employment tribunal in October 2014 which then went to a full hearing in March 2015.
Mortgage27 took control of Client Data Systems in 2013 after the company hit financial difficulties and its assets were fully purchased by January 2014.
Brown was awarded around £140,000 for the unlawful deduction of wages, breach of contract, unfair dismissal and loss of earnings. But with the company in liquidation he currently doesn’t stand to get a penny.
Brown said: “I’ve invested so much time and money into this so far that I may as well take it to the bitter end.
“I am seeking legal advice. I hope there is a case and if there is I will do whatever I can to explore every possible option.”
In response Twenty7Tec’s managing director James Tucker distanced the group from Brown’s claim.
Tucker said: “It’s really nothing to do with us now. Mortgage 27 is in the hands of the liquidator and they are responsible for it – the liquidator will keep all creditors up to date on things and if Mr Brown has any issues he can take it up with them.”
Before the creditors meeting in Bournemouth last month Tucker confirmed that the tribunal was a factor in Twenty7Tec wiping off its subsidiary Mortgage27 for liquidation.
At the time he said: “An employment tribunal award against Mortgage27 Ltd related to an ex-employee of Client Data Systems Group placed an additional financial burden upon the company that we were not prepared to support.
“We felt that Mortgage27 Ltd would trade insolvently if we allowed it to continue and as such we placed it into liquidation.”
Brown was one of two developers who transferred the full CDS source code over to Mortgage27 once it assumed control of CDS.
Tucker invited employees from both Mortgage27 and CDS to view a presentation painting a picture of the two businesses becoming one on 28 October 2013. On 2 September a press release was distributed saying CDS and M27 had merged, although sources indicate the deal wasn’t finalised until January 2014.