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Legal wrangling to continue over sale of Liverpool

February 9, 2011

The Royal Bank of Scotland and former Liverpool owner Tom Hicks will continue disputing the club’s sale to New England Sports Ventures in the High Court. Both sides want injunctions coming from a heated court-room battle last October which culminated in the sale of the club against Hicks’s wishes.

In what was dubbed an epic swindle, legal action was filed in Texas and London. The High Court will have to clean up the mess begun in that frantic series of litigations.

Should Hicks succeed in court, the path would be paved for a series of damages claims against the bank and the former club directors. Following the £300m sale of Liverpool, RBS wants to prevent Hicks and former partner George Gillett from suing the institution for damages.

An injunction obliging Hicks to drop the Texas action was issued by justice Christopher Floyd, with RBS seeking to have it made permanent. Wanting to pursue the bank for damages, the Americans will seek to have the injunction lifted.

The Liverpool deal led the pair to lose about £140m. US lawyers for Hicks intend on seeking hundreds of millions of pounds in damages. To protect himself from damage claims, former Liverpool chairman Martin Broughton is seeking a negative declaratory order which will absolve him from any liability.

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