Updated 15.55
THEY THOUGHT IT was all over. Sadly, it wasn’t.
Though a new era has very obviously dawned at Anfield, Liverpool’s off-pitch woes have not quite ended yet.
Earlier this morning, a London court upheld former owner Tom Hicks’ right to sue the Royal Bank of Scotland for damages arising out of the sale of the club to New England Sports Ventures (NESV) in October 2010.
At the time of the sale, Hicks claimed that he had been the victim of an “epic swindle”, estimating that he had lost $140m of his personal wealth when the sale was forced through against his will. Along with co-owner George Gillett, Hicks promised to sue for damages of $1.6bn.
This morning’s case was brought to court as Hicks sought to lift the anti-suit injunction in which Mr. Justice Floyd had originally ruled that the American could not stop the sale through legal actions in Texas.
Mr. Justice Floyd dismissed that application and left the anti-suit injunction in place, meaning that Hicks will have to pursue any damages within the jurisdiction of the EU rather than in America where there is a precedent for awarding much larger sums in damages.
The judge did rule, however, that Hicks should be allowed to make applications in the U.S. in support of any proceedings in Britain, provided he gives seven days notice to the parties he is suing.
Ruling
Speaking in the London High Court this morning, the judge explained that he had originally allowed the anti-suit injunction “on the basis of what appeared to me to be the unconscionable conduct of the former owners in seeking to undermine the English proceedings”.
Explaining his decision not to discharge the anti-suit injunction, he said
The reality of the situation is that the former owners have already started two sets of proceedings and openly asserted their intention to start more.
They will undoubtedly start more proceedings if allowed to do so. There is a real threat that those proceedings will be in the United States.
Delight
A statement issued by Liverpool earlier this afternoon expressed the club’s “delight” that the original anti-suit injunction had been upheld and that any pending litigation would remain under the jurisdiction of British and European courts.
We are delighted that Mr Justice Floyd has granted the applications requested by Sir Martin Broughton, RBS and NESV and that the anti-suit injunction prohibiting the former owners from commencing legal actions against these parties outside the EU has been upheld and clarified.
Sir Martin, RBS and NESV continue to maintain that there is no basis to challenge the propriety or validity of any actions by them or any of those involved on their behalf in the sale of the club.
They will continue to take all steps necessary to defend vigorously any litigation threatened or commenced by the club’s former owners.
