ABN Amro rebels go on gardening leave

The rebel ABN Amro fund managers George Luckraft and Nigel Thomas agreed yesterday to stay on gardening leave until their employer's lawsuit gets to court.

ABN Amro, the Dutch financial services group, had slapped in an injunction on Thursday after Mr Luckraft and Mr Thomas suddenly quit their jobs to go to rival Framlington. The writ was for breach of contract to prevent them joining Framlington early. Framlington had poached the pair at the beginning of April, but they had originally agreed to work out their year's notice with ABN Amro. They walked out on Wednesday, claiming an irrevocable breakdown in the working relationship had occurred.

Framlington said: "Following the legal action taken by ABN Amro there has been a further appearance in court today, 24 May 2002. The court has now lifted the Court Order (originally granted without notice to George or Nigel). George and Nigel have agreed to remain on gardening leave pending the resolution of the issues at a trial, which is to be convened as quickly as possible. We welcome an early trial and remain confident that the actions of George and Nigel will be fully vindicated by the court at that time.

"It is of course regrettable that this matter will now be dealt with by the court. We remain hopeful that a sensible and typical compromise on a starting date at Framlington for George and Nigel can be agreed with ABN Amro."

At ABN Amro the pair handled funds worth £1.3bn, almost 90 per cent of its total money under management. Mr Thomas managed the top ranked ABN Amro UK Growth and Select Opportunities funds. Mr Luckraft managed the UK Equity Income and UK High Income funds.