Football League sues its solicitors over ITV Digital collapse
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Football League yesterday began one of the biggest claims for professional negligence in British legal history, claiming its former legal advisor was responsible for lost income of £150m after the collapse of the pay-TV company ITV Digital.
The League claimed in the High Court in London that Hammonds Solicitors, which at the time traded as Edge Ellison, failed to ask for payment guarantees when the firm acted in 2000 for the League in its broadcasting deal with ITV Digital. The firm was accused of failing to protect the League's interests, being negligent and being in breach of contract.
ITV Digital, or OnDigital as it was originally known, was an attempt by its parent companies, Carlton and Granada, to challenge Sky's dominance in sport. It collapsed in 2002.
The League subsequently sued Carlton and Granada in an attempt to recoup £132m in broadcasting fees it said it was owed. The High Court ruled that ITV Digital's owners were under no legal obligation to honour their collapsed subsidiary's debts, because neither company had given financial guarantees.
The League is now suing Hammonds directly. It is rare for such cases even to reach court and an out-of-court settlement, funded by indemnity insurance though not worth £150m, is still a possible outcome.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments