The controversial Esto Law Service has announced this morning it will no longer trade following controversy surrounding its launch on Monday.

Directors of the nascent legal entity John Scott QC, John Keenan and Stuart Munro announced their resignation this morning with immediate effect

Announcing their departure, the group said that their continuing involvement would be “incompatible with their priorities towards their own firms”.

“The remaining Directors intimate that ESTO Law Limited will no longer be offering the proposed new service,“ the group said in a statement.

A letter sent to the President of the Law Society last night from Glasgow Bar Association President Bernadette Baxter raised questions about whether the business was appropriate, and asked if it had benefited from information gathered by its directors whilst on the Society’s legal aid negotiating team.

One of the directors, Ian Bryce, is the front runner to ascend to the Presidency of the Law Society. The successful candidate will be announced this morning.

The directors said this morning that the venture "was offered no special assistance or advice”.

“This service was conceived solely on the basis of publicly available information,” the group said.

“Contrary to speculation, ESTO Law was offered no special assistance or advice. It received no help other than that which is available to all new firms.

“Informal soundings before launch suggested support and enthusiasm for such a service. It has become clear that, while there is much interest and demand, there is also considerable fear and suspicion about what we intended.

“While we consider the negative response misplaced, the reaction of the profession tells us that the demand does not yet justify what we proposed. In the circumstances we intend simply to withdraw our offer of service.”