Small investors hire £1m-a-year QC for Railtrack battle

Small shareholders in Railtrack have hired one of the most expensive barristers in London to represent them in their fight for compensation from the Government.

Michael Crystal, QC, is reputed to earn £1m a year and was a lead barrister in one of the costliest legal actions ever fought. The court battle between two feuding members of the aristocratic Swiss family, the Thyssens, is estimated to have cost £60m in lawyers' fees and earned Mr Crystal £3m alone. During the case, which took place in Bermuda and lasted three years, he rented a home on the island costing £10,400 a week and threw lavish champagne parties. David Bowie and the film star couple, Michael Douglas and Catherine Zeta Jones, were among his neighbours.

The Railtrack Private Shareholders Action Group has retained Mr Crystal to advise investors of their rights in law. He will be supported by a fellow barrister Dr Fidelis Oditah, who is said to be an expert in establishing the fair value of compensation for shareholders.

Andrew Chalklen, the chairman of the action group, said that Mr Crystal's legal fees would use up most of its fighting fund. The group has raised £440,000 through a £20 levy on each of its 22,000 members. Mr Chalklen said he was "delighted" that Mr Crystal had agreed to work on the action group's behalf. "He has an outstanding reputation and an immense wealth of experience," he added.

The action group said that the compensation offer of 97p a share made through Network Rail, the Government-backed company that is taking over the assets of Railtrack plc, was "totally unacceptable".

Together with other assets Railtrack shareholders are entitled to, this brings the total compensation offer to about 250p a share. This compares with the 360p in compensation initially demanded by Railtrack and the 280p price at which its shares were suspended last October.

Railtrack is understood to have received legal advice that fighting the Government through the courts is unlikely to produce compensation of more than 280p.