Claims Direct is ending its agreement to automatically pass on many of its legal cases to solicitors Poole & Co.
Colin Poole was formerly co-founder of the personal injury claims management specialist and partner of the firm of solicitors. He resigned from the board last August.
Now Claims Direct is terminating Poole & Co's contract to administer its panel of solicitors and entitling it to cases on an exclusive basis.
Under the terms of the agreement both companies have agreed to settle all debts. Claims Direct will purchase Poole & Co's interest in all aborted cases up to 31 December 2001, valued at £1.05m. It will also make a maximum payment of £1.3m for that right.
Poole & Co will have access to cases for the next five years but can then either extend the agreement for a further final two-year period or receive a termination payment of £500,000.
Claims Direct chief executive Ronnie Henderson said the move would help the company "restore its reputation".
Colin Poole declined to comment.
