Court battle: Former Liverpool owner Hicks granted
right to sue RBS for damages
Former
Liverpool
owner Tom Hicks was given the
chance to launch massive damages claims over the sale of the
Premier League club after orders barring action in the US were
varied by a High Court judge in London.
American Hicks wanted Mr Justice Floyd to lift anti-suit orders
which prevented him taking action in the Texas courts to halt the
deal in which he claims he lost £140million.
The judge dismissed that application but varied the anti-suit
injunction to allow Mr Hicks to make applications in the US in
support of any proceedings in this country if he gives seven days
notice to the parties he is suing.
Mr Hicks believes he was the victim of an 'epic swindle' when
the club was sold against his wishes to New England Sports Ventures
for £300m.
Mr Justice Floyd also dismissed an application to strike out or
stay claims by Sir Martin Broughton, former chairman of the club,
seeking damages against Mr Hicks for his actions while owner.
New England Sports Ventures' application to be allowed to join
the Broughton action was granted by the judge.
NESV bought the club after repaying a £237m loan Mr Hicks and
his former partner George Gillett took out with the Royal Bank of
Scotland and Wells Fargo and Co.
Mr Justice Floyd, in his ruling today, said the sale of
Liverpool came about because of Mr Hicks and Mr Gillett's
indebtedness.
As the repayment date for the loan approached, Broughton
arranged a board meeting last October to consider two offers, both
of which were opposed by the former owners.
The US pair purported to remove some of the English directors of
the club and replace them with their own men.
American dream: John Henry took control of Liverpool
last October
Broughton went ahead with a board meeting which included
the original directors and accepted the offer from Sports
Ventures.
The judge said the former owners then sought a temporary
restraining order in Texas 'expressly aimed at stopping the
sale'.
It was then that he said he allowed an 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'.
Of 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.'
Of the application to vary the anti-suit order, he said the
former owners should be free to be able to make applications in the
US courts that would aid proceedings in the UK.
Legal threat: Former Liverpool chairman Martin
Broughton
Liverpool have expressed their satisfaction with the
court's decision.
In a statement they said: 'Last week a further hearing took
place as part of the ongoing litigation following the successful
sale of the club in October 2010 to NESV.
'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.'