This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2016/jan/19/judge-criticises-sports-direct-in-rangers-legal-case

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Judge criticises Sports Direct in Rangers legal case Judge criticises Sports Direct in Rangers legal case
(about 4 hours later)
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. Sports Direct has “abused” the legal system, according to a high court judge presiding over the embattled 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. The latest denunciation came as the Sports Direct founder, Mike Ashley, said he would be inviting MPs to visit the company’s depot in Shirebrook, Derbyshire, following the barrage of parliamentary criticism in December in the wake of a Guardian investigation. It found that the retailer was effectively paying thousands of temporary warehouse workers below the minimum wage.
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. In the high court on Tuesday, Mr Justice Peter Smith took the surprising step of registering his disapproval of the company’s approach in its fight with Rangers, after Sports Direct withdrew its claim for damages in the case. Previously, the sportswear chain failed to have the football club’s chairman, Dave King, sent to prison over allegations that he had violated a gagging order.
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. King has been accused of breaching a confidentiality agreement between Rangers and the FTSE 100 group after giving an interview to Sky Sports in July, during which he mentioned meetings related to contracts Rangers has with Sports Direct.
Ashley, who owns 55% of the retailer, had claimed in his witness statement that the damage of the alleged breach and others ran into “millions of pounds”. The company then claimed £200,000 in damages, a level that ensured the case would be heard in the high court, before reducing the claim to £50,000 and then withdrawing it on Monday. Sports Direct 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.”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”.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.”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 retailer’s claim that King breached the confidentiality agreement will be heard in February.
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”. In December, when Sports Direct failed to have King sent to prison, 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.”
Gordon Dinnie, the chairman of the Rangers supporters trust, said: “We are delighted with the comments of Mr Justice Smith today. Sports Direct and Mike Ashley have been a malign influence on Rangers since they first became involved. Their treatment of the club and the fans has been nothing short of a disgrace. The type of abuse which Mr Justice Smith spoke about is precisely our experience.”
The high court comments follow the company being widely chastised by politicians, businesspeople and unions following the publication of the Guardian investigation last month.
The coverage led to an urgent question and debate in parliament, calls for an investigation by HM Revenue & Customs, and criticism from the Institute of Directors, which described Sports Direct as a “scar on British business”.
Toby Perkins, the MP for Chesterfield, which is about 10 miles from the Shirebrook warehouse, tweeted a copy of a letter he received from Ashley, inviting him to discuss the recent controversies over working conditions at the plant. The MP later removed the tweet.
The letter said that “a small number” of other MPs who have written to the tycoon would also be invited, although Dennis Skinner and John Mann, two of the local MPs most outspoken on Sports Direct, have yet to receive an invitation.
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.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 did not comment.
The retailer’s claim over whether King breached the confidentiality agreement will be heard in February.
Sports Direct did not comment.