By: 12 December 2013

Crusader, a Quindell-owned CMC, has filed a counterclaim against Doctors Chambers and Bodycare Clinics after being sued by the two companies for allegedly breaking a contract prematurely.


Crusader entered into an agreement with the two companies to supply business on 9 October 2009, before it was bought out by Quindell, which was then terminated by the CMC on 4 March 2013.


As a result, Crusader has been sued by Doctors Chambers for £2.97m and by its sister company Bodycare Clinics for £2m for a supposed breach of contract.


According to Post, the two companies allege that Crusader terminated the contract early because it did not meet a commitment to refer 30,000 cases or supply business for at least three years.


Crusader disputes the claim and has defended the case as well as filing its counterclaim on 2 December.


Quindell said it has found a number of irregularities in the original deal saying that the agreement between the parties had expired prior to being terminated, due to "under-reporting" on the part of the claimants.


The firm additionally alleges that Doctors Chambers and Bodycare Clinics breached the terms of the contract with poor service levels.


“Having looked closely at the position with Crusader during our due diligence, we strongly support their defence of the case that in fact money is owed to Crusader," Ian Farrelly, Quindell general counsel and company secretary, told Post.