Claims solutions provider Aquilo is suing fraud detection company VFM for up to £200,000 following the collapse of the partnership between the two companies last year.

The claim submitted at the High Court relates to an agreement between the two companies to combine VFM's fraud detection process with Aquilo's claims management infrastructure and services.

In the claim form Aquilo alleges that VFM "failed to use every endeavour to ensure the success of the alliance".

Aquilo also alleges in the claim form that VFM offered its services independently to a joint client and unilaterally changed pricing structures.

The claim is for between £15,000 and £200,000 for loss and damages, according to the claim form submitted at the High Court.

Aqulio company secretary Crispin Burdett said the company would not comment on specific litigation, but added: "We only litigate reluctantly and only with a strong case."

VFM managing director Bill Jackson said the company "will defend every aspect of the case".

The partnership agreement ended in June 2004. Jackson said that the company had decided that it was in its "best interests" to offer an independent service to the market.