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Senior Judge Slams File-Sharing Law Firm, Orders Costs Payout

Today, Judge Birss QC authorized UK law firm ACS:Law to be pursued for “wasted costs” in connection with their controversial attempts to squeeze cash settlements from alleged file-sharers. The judge slammed the firm, describing owner Andrew Crossley of engaging in improper conduct that has brought the legal profession into disrepute.

Following a ruling by a senior judge in the Patents County Court today, law firm ACS:Law and owner Andrew Crossley can indeed be pursued for so-called “wasted costs” relating to more than two dozen abandoned cases.

The decision follows the law firm’s campaign of threats against individuals accused of sharing movies, many of them pornographic, on BitTorrent networks.

Recipients of ACS:Law letters were told to pay cash settlements of around £500 or face being taken to court by Media C.A.T, a client of ACS:Law. While many resisted, thousands paid up. ACS:Law owner Andrew Crossley, Media C.A.T and other clients together collected around £1.5m in the scheme.

Always accused of not wanting to bring any cases to court, in the end ACS:Law was effectively forced to deal with 27 cases they had filed earlier with the Patents County Court in London. Few observers were surprised when they tried to abandon them all at the 11th hour.

However, the defendants and their lawyers had run up significant bills dealing with Crossley’s accusations. They called for ACS:Law and Media C.A.T to pay “wasted costs”, something that Judge Birss has been considering since the cases were dismissed last month and has ruled on today.

“I am quite satisfied to the standard necessary for this stage of a wasted costs application that Mr Crossley is responsible for the Basic Agreements [the licence agreements between Media CAT and original copyright holders] and has thereby acted in breach of the Solicitors Rule 2.04,” said Judge Birss, as reported by Ralli Solicitors, a law firm in court today representing some of the defendants.

“In my judgment the combination of Mr Crossley’s revenue sharing arrangements and his service of the Notices of Discontinuance serves to illustrate the dangers of such a revenue sharing arrangement and has, prima facie, brought the legal profession into disrepute. It may be better placed under the revenue sharing heading in this judgment but it is, prima facie, improper conduct in any event,” Birss added.

The language being used by Birss will undoubtedly damage Crossley’s prospects of continuing his career in the legal profession. Having your conduct described by a senior judge as both “chaotic and lamentable” and “amateurish and slipshod” is damning.

Both ACS:Law and Media C.A.T, who were previously accused by Judge Birss of doing everything they could “to avoid judicial scrutiny”, pulled their departing stunt at the end of January 2011, by quietly closing down both of their businesses.

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  • Mr Afghanistan

    Both got FU(C)KED UP :)

    You both deserve it. NOW TAKE THAT A$$HOLES !!!

    • Tarheelmm

      People who does bit torrents are fucking gay ass leeches. You stupid motherfuckers should be paying for your movies, music, and software. But instead you are killing the world with this gay ass file sharing. You all can lick my fucking dick and swallow my cum!!!!

      Sincerely,
      Tarheelmm
      tarheelmm@gmail.com

  • Whatever

    I am just worried about my train being late again…

  • Thebluebus

    i’m sure they’ll just start up again under new buisiness names. the uk is shocking at letting people get away with doing that :(

    • Whatever

      There are (as far as i know) still 2 organizations investigating ACS.
      One can destroy his lawyer career and the other fine him up to 500000 pounds.

      And because judgements are used as precedents by lawyers like Crossley he can expect a lot of blackmailed individuals sueing him with this judgement as an example. He will have a lot of business on his hands now (defending himself from all sides).

      It wouldn’t be that easy for him to start a new scam again (he already tried).

      • Anonymous

        Those two organizations are…

        Solicitors Regulation Authority (SRA) who have over 500 complaints against him and will decide his future as a solicitor.

        Then the Information Commissioner is sure to issue a sizable fine for a major breach of the Data Protection Act concerning the ACS:Law email database leak which was highly damaging.

        You can also include the wraith of the public. A good warning to all who think attacking the population is a good idea when they tend to fight back in large numbers.

        • Aussie

          Being pedantic for a second, I think you mean the “wrath of the public”… Kind of changes your point if there are some sort of poltergeists living amongst us and chasing anybody, let alone lawyers that deserve it.

          Seriously though, the manner in how ACS has gone about this has damned this guy forever. Mud sticks, and no company in their right mind would go near him now. As soon as people found out who he was, and the bare basics of the backstory, the stench should be enough to find him unemployed.

          Not all publicity is good publicity.

        • Whatever

          I am sure it is possible to find a use for the word “wraith” concerning Crossley.

        • Aussie

          Being pedantic for a second, I think you mean the “wrath of the public”… Kind of changes your point if there are some sort of poltergeists living amongst us and chasing anybody, let alone lawyers that deserve it.

          Seriously though, the manner in how ACS has gone about this has damned this guy forever. Mud sticks, and no company in their right mind would go near him now. As soon as people found out who he was, and the bare basics of the backstory, the stench should be enough to find him unemployed.

          Not all publicity is good publicity.

        • http://disqus.com/ Rob8urcakes

          In actual fact it seems the IC is HIGHLY unlikely to issue any fine against anyone at all :(

          Check out this news report from SkyNews dated today which stated,

          Just four fines have been handed out by the information watchdog since the powers came into force last year, new figures have revealed.

          More than 250,000 possible breaches of the Data Protection Act have been reported to the Information Commissioner’s Office (ICO) but only 36 have resulted in any action and just four led to civil penalties.

          The maximum penalty for a single offence is £500,000 – but the biggest fine handed out to date has been £100,000. In total, organisations have been ordered to cough up£310,000.

          The figures, released under the Freedom of Information Act to encryption firm ViaSat, also show that the ICO has taken action against seven private sector organisations, but 29 in the public sector.

          Chris McIntosh, the firm’s chief executive, said: “The ICO has a tremendous amount of leeway in the penalties it levies and so far doesn’t seem to be applying this in either direction.

          “The ICO has stated that the embarrassment and poor image of a fine will act as a deterrent and an incentive to improve an organisation’s grasp of the Data Protection Act.

          “However, if fines are rare and well below the maximum allowed limit, their value as a deterrent drops.

          “Organisations will view the rarity of a fine and the associated negative publicity the same way they have viewed the threat of a data breach itself: an event that only happens to other people.”

          http://uk.news.yahoo.com/5/20110420/tuk-info-watchdog-hands-out-just-four-fi-45dbed5.html

        • http://disqus.com/ Rob8urcakes

          In actual fact it seems the IC is HIGHLY unlikely to issue any fine against anyone at all :(

          Check out this news report from SkyNews dated today which stated,

          Just four fines have been handed out by the information watchdog since the powers came into force last year, new figures have revealed.

          More than 250,000 possible breaches of the Data Protection Act have been reported to the Information Commissioner’s Office (ICO) but only 36 have resulted in any action and just four led to civil penalties.

          The maximum penalty for a single offence is £500,000 – but the biggest fine handed out to date has been £100,000. In total, organisations have been ordered to cough up£310,000.

          The figures, released under the Freedom of Information Act to encryption firm ViaSat, also show that the ICO has taken action against seven private sector organisations, but 29 in the public sector.

          Chris McIntosh, the firm’s chief executive, said: “The ICO has a tremendous amount of leeway in the penalties it levies and so far doesn’t seem to be applying this in either direction.

          “The ICO has stated that the embarrassment and poor image of a fine will act as a deterrent and an incentive to improve an organisation’s grasp of the Data Protection Act.

          “However, if fines are rare and well below the maximum allowed limit, their value as a deterrent drops.

          “Organisations will view the rarity of a fine and the associated negative publicity the same way they have viewed the threat of a data breach itself: an event that only happens to other people.”

          http://uk.news.yahoo.com/5/20110420/tuk-info-watchdog-hands-out-just-four-fi-45dbed5.html

        • Whatever

          You research a lot, i see.

          That’s indeed rare. A tiger with teeth but scared to use them.

        • http://disqus.com/ Rob8urcakes

          Dammit, I thought for a moment you were calling me a tiger (which is kinda sexy, grrrrowwwwllllll) – but realised you were referring to the Embarrassment Commissioner who merely likes to paw his ailing or deceased prey prior to issuing a smile showing what sharp teeth he has.

          I wonder if he has big eyes, big ears and has a visitor called Little Red Riding Hood too?

    • Duke

      The whole point of these wasted costs and third party costs etc. is that the defendants are seeking to get costs awarded against Mr Crossley (the lawyer), not just against the claimant shell company (MediaCAT) or the law firm (ACS Law – which consists of just Mr Crossley).

      This is quite rare, obviously, but has happened due to his “improper conduct” in the case.

      —-

      The wasted costs are on the grounds that the lawyers acted “improperly, unreasonably or negligently” and thus caused the other party to ‘waste’ money in dealing with these. This is fairly easy given how badly the whole affair was screwed up.

      The third party costs business is a way of getting some third party (i.e. not the defendant or claimant – in this case, the claimant’s lawyer) to pay the costs themselves on the grounds that they controlled or initiated by them, for their own gain (i.e. Crossley was allegedly directly profiting from the ‘litigation’ and was running the whole business).

      —-

      From my understanding, this judgment didn’t order that costs be paid, merely said that the application could go ahead; now Crossley (or more likely his insurance company) gets to defend himself and so on. That will happen on the 17th July.

      • Asdgasjd

        17th *June*

      • Whatever

        Too bad for those people that will have to wait a bit longer to get their money but it also means Crossley will be busy a whole lot longer.

        And still other people can start asking for refunds and wasted costs too now that it has been determined he is a scammer.

        Something like this: “I was so afraid of the letter that even though i didn’t do anything i agreed and paid to get rid of of the problem. Now that it turns out it is a scam i want my money back”

  • http://www.facebook.com/jordan.kratz Jordan Kratz

    They desrve it..
    good news here

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  • Ninja

    Talk about kicking the rotting corpse… Not that they don’t deserve it ;)

    • http://pulse.yahoo.com/_FCNK7C55CBUYFVSC5LNWKB322E Buglord

      like a jew kicking hitler’s burning corpse, so deserved.

      • Ninja

        LOL! That was epic my friend. And yes, agreed.

  • Pingback: Senior Judge Slams File Sharing Law Firm Orders… « Lee Thomas (londonfilmgeek)

  • Jack

    Judge Birss has enough common sense to recognise Crossley as a crook and scam artist and is treating his case accordingly (unfortunately not all UK Judges have the same common sense).
    Crossley was able to run rings round Chief Master Winegarten who should be himself held accountable for his part in the scam.

    • YarickZan

      Common sense is for all intents and purposes is about as rare as a snowball in the Sahara.

      • puddi puddi

        i like to call it uncommon sense

      • puddi puddi

        i like to call it uncommon sense

    • Anonymous

      The problem with Chief Master Winegarten is that none of the ISP contested these cases so he had no real choice but to issue his NPOs. He did express doubt but it was only when the ACS:Law email datebase leak happened that there was enough evidence for both him and the ISPs to shut it down.

      You should keep in mind that the real people to blame are all the ISPs who cooperated saying such things like “we support copyright holders rights to protect their works”. They were asked many times to defend their customers but they failed to do so.

      It is now well proven that they were wrong to cooperate when copyright holders should only use this method again major infringers.

      We should also not forget that many ISPs also charged ACS:Law and others a sizeable fee for every customer details that they issued which also means they took a cut of this foul pie.

      • Guest

        The information commissioner should look into this as well, and rule that customers records are not a tradeable asset to be sold between companies.

        That issue still needs to be addressed as it’s unacceptable. I encourage UK residents to write to the IC asking them to look at it and rule it out from ever happening again.

  • http://pulse.yahoo.com/_PXX4S66KOUIGIKTTIMV3CBGO7Y Colin

    Excellent news as it piles more pressure on Crossley. However, I don’t suppose he’s left too much wonga lying around where his victims can get at it. I wouldn’t be surprised to see him file for bankruptcy in the next few months while hoping to live off assets he’s hidden away.

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  • Anonymous

    HA!
    This is the slimeball here: http://i.imgur.com/l9tC5.jpg

  • Hugues

    Aaaah… Sweet revenge…
    Let us hope that Germany and the States will do somtehing similar to their crooks…

    • Ninja

      Then you wake up after rolling and falling from your bed. At least for the US part of your comment.

    • Sc1t4le

      Sadly, in Germany, this kind of consumer action is not done. People assume that since the laws are much stricter, that the lawyers must be within their rights to do this.

  • Hugues

    Aaaah… Sweet revenge…
    Let us hope that Germany and the States will do somtehing similar to their crooks…

  • lol

    Finally, a Judge with some sense. This might just restore a tiny bit of my faith in the legal system. Might…

    • Anonymous

      There’s too much evidence against Crossley, and since lots of his money went into his new exotic sports car, he can’t bribe her.

  • http://thegift73.wordpress.com/ TheGift73

    This actually made my day. Monday’s aren’t all that bad I guess.

  • http://thegift73.wordpress.com/ TheGift73

    This actually made my day. Monday’s aren’t all that bad I guess.

  • Jmorse43508

    Crossley ought to be disbarred after this. Not sure what the procedure for doing this is in the UK, though it is likely different from that of the US.

    • Anonymous

      I am quite sure that Andrew Crossley will be disbarred for this one. This is not his first appearance before the SRA (Solicitors Regulation Authority) with punishment in mind. They are sure to disapprove of his get rich quick speculative invoicing scheme and recent judgements against him have been quite damning.

      His only hope to avoid being disbarred is to quit copyright cases for good but that is a long shot.

    • Anonymous

      I am quite sure that Andrew Crossley will be disbarred for this one. This is not his first appearance before the SRA (Solicitors Regulation Authority) with punishment in mind. They are sure to disapprove of his get rich quick speculative invoicing scheme and recent judgements against him have been quite damning.

      His only hope to avoid being disbarred is to quit copyright cases for good but that is a long shot.

  • Guest

    “Today, Judge Birss QC authorized UK law firm ACS:Law to be pursued for “wasted costs” in connection with their controversial attempts to squeeze cash settlements from alleged file-sharers.”

    Wahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

    Breath! Breath Breath!

    Wahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

    Breath! Breath Breath!

  • Big Whoop

    Big Whoop

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  • Billg

    Hahahahahahahahahahahaha!!

  • http://disqus.com/ Rob8urcakes

    Oh this is such sweeeeeeeeeet justice, and there’s more to come when Crossley faces his peers in a disciplinary hearing by the Solicitors Regulation Authority.

    btw, does anyone have a link to Judge Birss’ decision yet?
    Meanwhile here’s what Rule 2.04 of the Solicitors’ Code of Conduct 2007 says -

    “2.04 Contingency fees

    (1)
    You must not enter into an arrangement to receive a contingency fee for work done in prosecuting or defending any contentious proceedings before a court of England and Wales, a British court martial or an arbitrator where the seat of the arbitration is in England and Wales, except as permitted by statute or the common law.

    (2)
    You must not enter into an arrangement to receive a contingency fee for work done in prosecuting or defending any contentious proceedings before a court of an overseas jurisdiction or an arbitrator where the seat of the arbitration is overseas except to the extent that a lawyer of that jurisdiction would be permitted to do so.”

    http://www.sra.org.uk/rule2/

    • Anonymous

      Oh dang. Good work, Robby.

    • Usb Who ?

      prima facie : http://legal-dictionary.thefreedictionary.com/prima+facie

      Btw remember before there was ACS flaw there was that other company doing the same thing !! wasn’t it alleged that they had passed or sold their data to acs which was considered illegal or something !!! [maybe somebody who knows can let us know] Well here we are with acs going under and them holding a lot of data on people via their i.p addresses so would it be legal or illegal for acs to now sell that info on to another company as it has to be said if a new company starts up tomorrow and suddenly produces data thats nearly 3 years old then where the hell did they get it…know what i mean, surely some snooping company hasn’t held onto it for that long in the hope they may one day be able to sell it.

  • Dudelyduderson

    This is a nice big bag of awesome, but Crossley’s such a slimy little rat, I wouldn’t be surprised if he sneaks out of it somehow. On the other hand, maybe for once justice will be served, and in 6 months, he’ll be living in a cardboard box under a bridge

  • Anonymous

    #winning

  • Anonymous

    I will only be happy once all the £500 sums start going back to the people who paid out this money. They should at least allow people to request a refund.

    I am sure many of them were innocent but paid up out of fear of a court case. Not to forget that the real damages value of a single download was more around £5.

  • Anonymous

    I will only be happy once all the £500 sums start going back to the people who paid out this money. They should at least allow people to request a refund.

    I am sure many of them were innocent but paid up out of fear of a court case. Not to forget that the real damages value of a single download was more around £5.

  • Anonymous

    They should have their credentials revoked, if they even have any.

  • Konkorz

    The headline is a bit misleading, as it implies that the firm in question supports file-sharing.

  • Anonymous

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  • EAnonymous

    Not quite sure if this is the guy but it seems to fit.Its appears this company can contact him. Perhaps some thanks for this particular Judges uncommon sense is in order? I wonder if Judges ever get fan mail?

    http://www.3newsquare.co.uk/html/colin_birss.htm

    • Bob

      That’s the guy. If you wished to thank him you could just wrote to him c/o the patents county court.

  • Anonymous

    Perhaps some ed hardy norge thanks for this ed hardy kvinner lange t-skjorter particular Judges billige ed hardy uncommon sense is in order? I wonder if Judges ever ed hardy menn kort t-skjorter get fan ed hardy klokker mail?

  • poop soup

    since i feel sorry for you guys heres hans pandeyas motorcycel :)

  • UNF

    The Judge did well to flay the hide off this toolbar Crossley, as a stern example to other ambitious and lazy shysters — now the cherry on top will be Ralli or another law firm organising a class-action suit against him on behalf of all the victims at once to recover the sum total of cash looted from them by this fraudulent scheme.

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  • Paul

    Let this be a lesson to all those other scams going on. You know who you are…..

  • Grindleader

    Points at Crossley and all, hahahahahahahahahahahahahahahahahahahahahahaha!

    Wiping tears out of eyes. I just love true justice. I am so fed up with all the politically correct attitude, bullshit lying big business wannabe rulers it makes me sick. We need to see more of this stuff. Fight back and rip their friggin heads off. They would do it to us in a heart beat.

  • http://profiles.google.com/maryjaneblnt2 Mary Jane Blunt
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