Ah well, another day, another legal victory for General Ashley over Sevco!
The full court ruling can be read here.
It is a lengthy judgement, but the key paragraphs are:
- For these reasons I have concluded that Sports Direct is entitled to the “undoing” injunction. However, it is necessary to consider its terms. It is well established that an injunction, especially a mandatory injunction, must be in clear and precise terms (see e.g. Redland Bricks v Morris [1970] AC 652, 666). In this regard, I consider the terms of the third injunction set out above to be insufficiently precise.
- Accordingly, I grant Sports Direct a third injunction on the following terms:
“Rangers shall:
(1) not perform the Elite Agreement;
(2) not assist Elite to perform the Elite Agreement; and
(3) inform Elite that it will not perform the Elite Agreement.”
- Since the form of that injunction is different from the form in which it was sought the parties may, if they wish, make observations on its drafting when judgment is handed down.
- My understanding, from paragraph 149 of Mr. Hofmeyr’s Skeleton Argument, is that damages are not to be determined at this hearing but that direction may be given for their determination. I request the parties to agree the necessary directions.
CONCLUSION
- In summary:
- i) The two questions posed by paragraph 2 of the Order for Directions dated 3 October should be answered in the affirmative. The prohibition imposed on Rangers by paragraph 5.8 and the obligation imposed on Rangers by paragraph 5.2 apply where Sports Direct has already exercised its matching right.
- ii) Accordingly, Rangers was in breach of the Retail Agreement by entering into the Elite Agreement and by failing to offer Sports Direct the opportunity to exercise its matching right in respect of Elite’s offer.
iii) Sports Direct is entitled to the first and second Injunctions sought in the terms set out in the Particulars of Claim. Sports Direct is entitled to a third injunction in the terms set out above.
Regular readers will not be surprised that Sevco’s online car boot sale has ended up with another spanking in court.
It would appear that the cunning plan hatched by the Conveyancing Consigliere was actually rather pish.
Then there is the somewhat vulgar matter of costs.
Mr Justice Teare said as Rangers had lost they would be liable for the legal bills during the latest round of litigation.
As I had previously reported General Ashley was sparing no expense on this case as he knew that Sevco would be paying!
Lawyers told Mr Justice Teare that Sports Direct had spent about £280,000 and Rangers about £147,000.
Have a great day…
