Companies are lining up lawyers to challenge Brexit - but not to block it
Mishcon de Reya has been hired by an undisclosed number of clients, which the Financial Times reports are all businesses.
The law firm says in a statement announcing the action that the government doesn't have "sufficient legal authority" to trigger Article 50 on its own and must seek the UK parliament's backing. Article 50 of the Lisbon Treaty formally begins the process of Britain withdrawing from the EU.
While 52% of voters backed a Brexit - Britain leaving the EU - the referendum is not legally binding and Mishcon says that a decision to leave the 28-nation bloc must be backed by the majority of MPs to protect the sovereignty of Parliament.
The law firm says in its statement:
"If the correct constitutional process of parliamentary scrutiny and approval is not followed then the notice to withdraw from the EU would be unlawful, negatively impacting the withdrawal negotiations and our future political and economic relationships with the EU and its 27 Member States, and open to legal challenge. This legal action seeks to ensure that the Article 50 notification process is lawful."
Kasra Nouroozi, a partner at Mishcon de Reya and head of dispute resolution, is leading the action. Baron David Pannick QC and Tom Hickman are acting as counsel in the action, along with Rhodri Thompson QC and Anneli Howard.
Pannick and Hickman have both written articles on the legal implications of a Brexit in the last week, The Lawyer magazine reports.
Nouroozi says in a statement:
"We must ensure that the Government follows the correct process to have legal certainty and protect the UK Constitution and the sovereignty of Parliament in these unprecedented circumstances.
"The result of the Referendum is not in doubt, but we need a process that follows UK law to enact it. The outcome of the Referendum itself is not legally binding and for the current or future Prime Minister to invoke Article 50 without the approval of Parliament is unlawful.
"We must make sure this is done properly for the benefit of all UK citizens. Article 50 simply cannot be invoked without a full debate and vote in Parliament. Everyone in Britain needs the Government to apply the correct constitutional process and allow Parliament to fulfill its democratic duty which is to take into account the results of the Referendum along with other factors and make the ultimate decision."
While Nouroozi says the result is "not in doubt," a debate and vote among MPs could be a significant roadblock for a Brexit. The majority of MPs favour remaining in the EU and JPMorgan said in a note to clients last week that a Parliamentary vote on Article 50 could be the "crucial point" at which a Brexit could be stopped.
However, both JPMorgan and Morgan Stanley have said that it is highly unlikely Parliament will block a Brexit given that it was so clearly voted for by the British people.
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