More details have come to light ahead of a court row between two of the main parties in the Ricoh Arena dispute.
The Alan Edward Higgs Charity will face Coventry City owners Sisu at Birmingham High Court on Tuesday over costs incurred during failed negotiations.
The case centres on the charity’s claim for £29,000 based on a negotiation clause which it claims stated that if Ricoh Arena talks broke down Sisu would cover the charity’s costs accrued as part of the process.
However, Sisu is defending the claim and has brought a counter-claim against the charity - ten-times that amount at £290,000 for their own costs from the negotiations - roughly what The Higgs Charity gives away in a year.
The case concerns negotiations over the club’s attempt to purchase the charity’s stake in Ricoh Arena management firm ACL - a joint venture company between the Higgs Charity and Coventry City Council.
Sisu's case is the charity must shoulder the blame for negotiations breaking down with the council after ACL and the city council agreed a deal which saw the council effectively become ACL’s mortgage lenders by buying the stadium company’s bank debt.
Club sources have said that Sisu paying off the bank debt was a key part of the discussions and that the club was forced out of a potential deal as a result of the council stepping in.
The case is likely to be heard by Mr Justice Leggatt and will see Birmingham-based barrister John Brennan, of St Philips Chambers, represent The Higgs Charity.
It is understood Sisu are likely to be represented by Rhodri Thompson QC of London-based Matrix Chambers.
The process is expected to last three days and tomorrow’s first session is likely to see Mr Justice Leggatt hear legal arguments from both parties before moving onto witness statements in the afternoon.
Among those to be called are likely to be Peter Knatchbull-Hugessen, clerk of the Higgs Charity, and Paul Harris, a trustee of the charity.
It is understood Laura Deering - who is believed to be Sisu boss Joy Seppala’s advisor - could also appear. Ms Seppala is not expected to be present during the proceedings.
One of the major legal arguments is likely to centre on the legitimacy of Sisu’s counter claim. Sisu is likely to maintain that their costs were at that level due to them being the pro-active party in the negotiations.
The Higgs Charity is likely to defend the counter-claim by suggesting much of the costs listed were incurred by parties which are not linked to Sisu directly - such as the wages of some club officials.
Pursuing the £29,000 from Sisu is believed to have already cost The Higgs Charity more than they stand to gain from the legal proceedings.
But Mr Knatchbull-Hugessen has previously stated the charity’s trustees have a responsibility to pursue money owed.
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