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Sports Direct abandon claim for £200K damages from Rangers FC


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http://www.theguardian.com/business/2016/jan/19/judge-criticises-sports-direct-in-rangers-legal-case?CMP=twt_gu

 

Mr Justice Peter Smith says the sports retailer has been ‘abusing processes of the court’ after withdrawing claims for damages against the football club

 

Sports Direct, the embattled sportswear chain, has “abused” the legal system, according to the high court judge presiding over the retailer’s bitter legal battle with Rangers football club.

 

Mr Justice Peter Smith took the surprising step of registering his disapproval of the company’s approach after Sports Direct withdrew its claim for damages in the case –in which the company previously failed to have the football club’s chairman, Dave King, jailed over allegations he violated a gagging order.

 

King has been accused of breaching a confidentiality agreement between the football club and the FTSE 100 group after giving an interview to Sky Sports in July, in which he revealed the existence and contents of meetings related to contracts Rangers has with Sports Direct.

 

Sports Direct’s 55% owner, Mike Ashley, had claimed in his witness statement that the damage to the retailer of the alleged breach and others ran into “tens of millions of pounds”. The company then claimed £200,000 in damages, before reducing the claim to £50,000, and then withdrawing the claim on Monday. It is now asking for injunctions on the disclosure of its commercial deals with Rangers.

 

After being told by Sports Direct lawyers that the company was no longer seeking damages, Smith said: “The whole way that the claimants have been conducting themselves [in relation to the damages] … shows that they have been abusing processes of the court.”

 

Smith also struck out sections of Ashley’s witness statement that dealt with the alleged damages, which he said were not supported by a “statement of truth”.

 

William McCormick QC, for Rangers, told the judge: “They [sports Direct] simply will not deal with us on a proper basis. I am sure it is not the lawyers. It must be because they are held by their instructions.”

 

The latest chastisement of Sports Direct comes after the company was widely rounded on by politicians, business people and unions following a Guardian investigation in December.

 

The reports revealed how the retailer was effectively paying thousands of temporary warehouse workers below the national minimum wage. The coverage led to an urgent question in parliament, calls for an investigation by HM Revenue & Customs, and criticism from the Institute of Directors, which branded Sports Direct a “scar on British business”.

 

On New Year’s Eve, Sports Direct pledged £10m for a pay rise for staff from the start of this year. Ashley has also promised to lead a review of all Sports Direct’s temporary staff terms and conditions.

 

In December, when Sports Direct failed to have King jailed, Smith queried whether Ashley was interested in having a “sensible” business relationship with the Rangers chairman “or grinding him into the dust”. The judge added: “Maybe he is interested. I don’t know.”

 

The retailer’s claim over whether King breached the confidentiality agreement will be heard in February.

 

Sports Direct did not comment.

Edited by Frankie
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James Doleman ‏@jamesdoleman now

Judge says his clerk has been receiving emails about blogs accusing him of "being a mason"

 

James Doleman ‏@jamesdoleman 7s7 seconds ago

Judge says blogs have said his wife is a Rangers supporter "this is untrue"

 

 

:roflmao: You couldn't make it up.

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Rangers v Mike Ashley: Sports Direct slated by High Court judge over ‘abuse of court processes’

11:45, 19 JAN 2016 UPDATED 11:46, 19 JAN 2016

BY RECORD REPORTER

MR Justice Peter Smith said he wanted to mark his disapproval of Sports Direct's approach after analysing preliminary issues in the dispute at a High Court hearing.

 

 

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image: http://i4.dailyrecord.co.uk/incoming/article7035363.ece/ALTERNATES/s615/Mike-Ashley.jpg

 

Rangers shareholder Mike Ashley – will today announce an increase of around 15p an hour for staffCriticised: Mike Ashley

A HIGH Court judge has torn a strip off a sportswear firm run by Newcastle United owner Mike Ashley .

 

Mr Justice Peter Smith said Sports Direct had abused court processes during a High Court dispute with Rangers.

 

The judge said he wanted to mark his disapproval of Sports Direct's approach after analysing preliminary issues in the dispute at a High Court hearing in London.

 

VIEW GALLERY

image: http://i4.dailyrecord.co.uk/incoming/article4401530.ece/ALTERNATES/s1023/Mike-Ashley.jpg

 

 

Mr Justice Smith said Sports Direct was claiming that Rangers had breached a confidential agreement.

 

He said the firm had initially claimed £200, 000 damages. It had then reduced the damages claim to £50, 000.

 

Now it was not claiming any damages - but wanted the imposition of injunctions.

 

Read more: Judge slams Mike Ashley over his bid to put Dave King in jail for breaching gagging order

 

 

Read more at http://www.dailyrecord.co.uk/news/scottish-news/rangers-v-mike-ashley-sports-7204429#qhIJWlDkPaVptUrW.99

 

http://www.dailyrecord.co.uk/news/scottish-news/rangers-v-mike-ashley-sports-7204429#bsGvoJKHbP1IzS12.97

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