Railtrack shareholders plan to sue former minister
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Your support makes all the difference.Stephen Byers, the former secretary of state for transport, was accused of "targeted malice" yesterday by shareholders in Railtrack, which he forced into administration last October.
Mr Byers was also warned that, although no longer in government, he would remain a "primary witness" in any court action shareholders may bring for compensation.
The Railtrack Private Shareholders' Action Group said that it still hoped to avoid litigation and called on the new Transport Secretary, Alistair Darling, to reopen negotiations.
However, the group also said that its advice from the leading barrister Michael Crystal QC, was that shareholders were in a position to bring a case for "misfeasance in public office" against Mr Byers. The group said that Mr Byers had acted with the intention of injuring Railtrack. Either he had actual knowledge his actions were unlawful or he was "recklessly indifferent" to the fact.
The group also said that shareholders had a potential claim under the Human Rights Act, on the basis that what amounted to the renationalisation of Railtrack was a breach of the provisions protecting an individual's right to property.
The Government has so far offered Railtrack shareholders a settlement worth 250p a share or £1.3bn. But the action group said it believed that any damages resulting from a successful action against Mr Byers would exceed this sum "substantially".
Railtrack itself is currently deciding whether to accept the offer made by the Government and is expected to come to a decision at the end of June. However, the group said that even if the company settled, this would not prevent shareholders pressing on with their own claims.
This could include a claim for "restitutionary" damages, which are based not on the loss suffered by shareholders but the gain made by the Government. Railtrack may be tempted to harden its stance after revelations by Pam Warren, one of the survivors of the Paddington disaster, that Mr Byers hinted at the demise of the company several weeks before his announcement.
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