RBS Coutts Bank is caught in a legal battle with former Asia head Hanspeter Brunner over an advance in the latter's bonus obtained before he left for BSI in 2009.

In April this year, Brunner filed a lawsuit in the Zurich labor court against the private bank claiming wrongful dismissal. In an article by Bloomberg, Brunner accused ex-RBS chief executive of wealth management John Baines for firing him to hand his job over to a friend. He is asking for SFr1.2 million ($1.2 million) in damages, including his outstanding bonus.

"John Baines has all along wanted to replace me with a close friend of his, Nicholas Pollard. When John Baines realised in the course of our discussions that I was not willing to resign, he changed tactic and went on the offensive," Brunner reportedly said in his filing with the Singapore High Court in August 2010.

Pollard assumed the chief position in Asia after Brunner left the firm in August last year. Baines resigned in February this year without citing a reason.

RBS Coutts had then filed its counterclaim in the Singapore court in August 2010 demanding that Brunner return the S$171,022 ($128,000) he obtained as a cash advance to his bonus. The filing did not contain the reason why the former chief was dismissed from his job.

Brunner reportedly said that he sees this move as a way to embarrass him in Singapore, where he is now based as BSI chief. He added that since his contract with RBS Coutts was governed by Swiss law, the dispute should be resolved there, not in Singapore. The case is RBS Coutts Bank Ltd vs Hanspeter Brunner S560/2010 in the Singapore court.

A spokesperson for RBS Coutts declined to comment when asked by this publication.