Over the course of 18 months from 2018, Salmond faced two costly court hearings. The ex-SNP leader won a judicial review of the Scottish government’s handling of complaints against him and was then cleared of 14 charges of alleged sexual misconduct after a High Court trial.
The legal actions left the former leader of the SNP on the verge of financial ruin as he “lost almost all of his income” from directorships and speaking engagements, according to his lawyers.
At his death, in October last year, he was still pursuing a claim against the Scottish government for malfeasance — the wrongful exercise of lawful authority — which remains active.
Levy & McRae, the firm instructed by Salmond’s widow, Moira, to wind up his affairs, identified the expense of his legal defences as the primary reason for bankruptcy.
Solicitor David McKie (left) and Alex Salmond leave the Court of Session in Edinburgh (Image: PA)
David McKie, a senior partner and Salmond’s lawyer in the two cases, told The Times: “It is a matter of profound regret that Alex had to invest so much time and money in clearing his name.
“But most people will understand that faced with such attacks and an unlawful process brought against him, there was no choice for Alex but to defend himself with every resource available to him.”
In January 2018 the Scottish government began an internal investigation into two complaints of harassment by two civil servants against Salmond.
The matter became public in August 2018. Salmond vehemently denied the allegations.
He began a judicial review into the way the investigation was handled and, in January 2019, the government conceded defeat over the case.
While Nicola Sturgeon was First Minister, her government was ordered to pay £512,000 in legal costs for mishandling the investigation.
His successful challenge was procedural rather than about the substance of the allegations. The court ruled that the process had been “tainted by apparent bias”.
His lawyers claim that “not a penny” of the costs went to Salmond or his wife, with the entirety used to cover legal bills.
Alex Salmond faced two costly court cases (Image: PA)
In any civil case, the successful party recovers only about 60-70 per cent of their expenses, which meant Salmond had to pay the remainder of the legal bill himself.
“He won the review, but the victory came at a significant personal cost,” said the law firm in a statement. “The £512,000 was a contribution to his lawyers, not a compensation package.”
Weeks later Salmond faced further allegations from more women, which resulted in criminal charges.
At the High Court in Edinburgh, in March 2020, Salmond faced 14 charges of alleged sexual misconduct, including attempted rape and sexual assault, against nine women.
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One charge was withdrawn part way through the trial and the jury ultimately acquitted him of the rest, returning a verdict of not guilty on 12 charges and not proven — a third verdict in Scottish law, which has the same effect as not guilty — on one of sexual assault with intent to rape.
To secure the best defence, including instructing high-profile counsel, Salmond spent more than £300,000.
A successful defendant in a criminal trial in Scotland cannot recover their legal expenses and the entire sum was lost.
It suggests that Salmond had to spend about £500,000 on both cases.
The application to appoint a trustee in sequestration will be made to the accountant in bankruptcy at the start of this week.
Alex Salmond’s wife Moira Salmond (C) attends a memorial service in tribute to Scotland’s former First Minister Alex Salmond, at St Giles Cathedral on (Image: Jeff Mitchell)
McKie said: “It was a matter of great satisfaction for [Salmond], and for Moira, that he was successful in exposing the unlawful conduct of the Scottish government and then clearing his name over criminal allegations in the highest courts in Scotland.
“But that success came at a huge cost, both in terms of the strain imposed on him personally and in terms of the financial pressure which funding that process of vindication imposed. We now act for Moira Salmond and have been assisting with winding up Alex’s estate.”
He added that appointing a trustee in sequestration was “very unfortunate” but a necessary step to “protect her interests and those of creditors”. The effect of the sequestration on his wife of nearly 40 years is unknown.
“It is a matter of profound regret that Alex had to invest so much time and money in clearing his name,” said McKie.
The accountant in bankruptcy is expected to assess and approve the application in the coming days or weeks. Once appointed, the trustee would administer the estate, establish its liabilities, and adjudicate on claims, a process that could take 12 to 18 months to conclude.
Salmond died aged 69 in Ohrid, North Macedonia, on October 12 last year after suffering a heart attack while attending a conference.
