TWO former Rangers FC administrators who were arrested during a high-profile investigation into the club’s affairs are beginning legal proceedings against Scotland’s most senior police officer and most senior prosecutor.
David Whitehouse and his colleague Paul Clark from Duff and Phelps were detained and charged by police investigating the businessman Craig Whyte’s takeover of the club in 2011. Charges against them were dropped after a court hearing before judge Lord Bannatyne in June last year.
On Tuesday lawyers acting for Mr Whitehouse and Mr Clark are due to appear before Lord Malcolm at the Court of Session in Edinburgh for a four-day debate over key legal issues surrounding the case.
Lawyers are, among other issues, examining whether the two actions should be rolled in a single case.
Mr Whitehouse, 52, claims that his detention, in November 2014, was “wrongful” and was seeking £9 million from the Police Scotland chief constable Philip Gormley and James Wolffe, QC, the lord advocate.
Ex-Rangers administrator sues Scotland's chief public prosecutor over assets freeze
His lawyers claimed that throughout the period of detention, there were no reasonable grounds to suspect that Mr Whitehouse had broken the law. Mr Whitehouse claims that police obtained evidence without following proper legal procedure. The lawyers say an indictment was issued against him without any "evidential basis".
Mr Whitehouse, from Cheshire, claimed that the actions of police and prosecutors resulted in him suffering damage to his reputation as a financial professional and a £1.75 million loss in earnings.
He says that between 2009 and 2014, his gross earnings averaged £988,000 per year but in 2015 he made £408,400 and last year it was £401,733. His lawyers say he lost earnings because he lost his licence to operate as an insolvency practitioner as well as losing out on bonuses.
Mr Whitehouse also claims that while in police custody in November 2014, a senior anti-terrorist police officer told him that his life and home were at risk. Mr Whitehouse says that his insurers then declined to renew his home insurance.
Ex-Rangers execs Charles Green and Imran Ahmad finally in the clear as club takeover fraud case ends
It emerged during earlier proceedings that Whitehouse’s colleague Paul Clark is also suing the Chief Constable and Lord Advocate.
Lawyers for Mr Whitehouse were in March set to present a summary decree case, arguing a judge should rule in his favour without hearing evidence.
But the police’s lawyers said they were still wading through documents and holding the hearing would be “prejudicial” while this review was incomplete.
Mr Whitehouse's QC said in March that the case hinged on whether police had “reasonable grounds” to arrest Whitehouse and if there was “sufficient evidence to justify trial”.
But at the March Court of Session hearing, judge Lord Malcolm ruled in the force’s favour and said the summary decree arguments could be heard in May.
Mr Whitehouse and Mr Clark worked for Duff & Phelps and were appointed as Rangers administrators February 2012.
Four months later, the company's business and assets were sold to a consortium led by Charles Green for £5.5m.
BDO were then appointed as liquidators, and conducted a review of the events leading up to administration through to the sale of the assets.
Police Scotland launched an investigation into the circumstances surrounding the takeover.
Mr Whyte was cleared of any wrongdoing by a jury in 2017.
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