Consultant claims money owed from Kazakhstan deal, but Aon counter-sues

Aon is being sued for £1m in unpaid fees by a consultancy run by a former Lloyd's broker.

Consultants Taylor Aston, of which ex-broker Alec Taylor is a director, entered into an agreement in 1992 to represent and promote Aon to the Kazakhstan government.

In a claim filed in the High Court, Taylor Aston says it is owed £1m in unpaid fees and commission, which it is owed under the terms of its agreement with Aon. It also says it has received £108,731 in commission from Aon.

Aon denies that it owes money to Taylor Aston. In a statement Aon said: "Aon has been consistent in its defence throughout that there are no additional monies due to Taylor Aston.

"Aon has a substantial counterclaim for overpayments made in advance. Aon will continue to defend and pursue our counterclaim."

The dispute relates to a contract Aon and Taylor Aston signed in 1992 under which Taylor Aston "agreed to represent and promote Aon as preferred broker to the Kazakhstan government and Kazakhstan insurance companies by including it [Aon] in the setting up and development of the Kazakhstan insurance market".

Under the terms of the agreement with Aon, Taylor Aston said it set up and led a working party, which included members of Aon's staff, that gave advice to the Kazakhstan government.

The consultant also said it had educated and trained staff in Aon's Kazakhstan office.

Taylor Aston, which is being represented by the law firm Mishcon de Reya, claims it is due damages of at least $1.7m (£930,000) plus additional damages equal to the "amount of commission it would have been paid had the defendant [Aon] complied with its obligations under the commission agreement".