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Legal expert doubts the merit of “£2.5 million” High Court claim against Northampton Town
http://www.northamptonchron.co.uk/n...ourt-claim-against-northampton-town-1-5346357
A legal expert says the High Court claim lodged by Coventry City’s stadium owners against Northampton Town will be “very difficult” to prove - as it emerged the damages they are seeking are in the region of £2.5 million.
Arena Coventry Limited (ACL) announced on Tuesday that it was suing the Cobblers for damages over the deal for Coventry City to play their home games at Sixfields for at least the next three seasons.
ACL says it has a 25-year lease with Coventry City for them to play at the Ricoh, and the Cobblers are “inducing” the Sky Blues to play their home games at Sixfields.
But the deal with the Cobblers was cut by Otium - the preferred buyer for the Sky Blues - with the help of the club’s administrator Paul Appleton.
And James Ressel, senior lecturer in law at The University of Northampton, said an administrator has the power to adopt or cancel any contract, after weighing up the interest of the company and the creditors.
Mr Ressel said, after applying a balance of fairness test, the administrators can decide not to honour a contract, if this would help to achieve the purpose of the administration - which in this case, would be keeping Coventry City afloat.
He added: “The administrators can do pretty much what they want, subject to supervision of the court. ACL could apply to the court for specific performance of the contract, and if the court declines to grant the remedy they become unsecured creditors for any losses.
“It seems to be a political fight between the people in Coventry, who want the rent, and Northampton.
“The administrators can decide not to honour the lease contract, unless it has automatically be brought to an end as a consequence of the appointment of an administrator.
“They have the power to deal with contracts, and they don’t have to honour any contracts, providing this would help to achieve the purpose of the administration.
“To me, put very simply, all it seems they have to do is disclaim the contract. Trying to prove somebody induced you to break a contract is a very, very difficult type of claim to run.”
The Coventry Telegraph reports that a creditors’ meeting is due to be held today, Friday, which will result in Coventry City Football Club Limited being liquidated if ACL refuse to sign an agreement to exit administration.
The Chron understands the golden share - the right to play in the Football League - should pass to the preferred buyer Otium, meaning the Sky Blues would play at Sixfields as planned, but would start the new League One season on minus 15 points.
ACL has also complained to the Football League about its decision to allow Coventry to ground-share with Northampton.
A spokesman said: “It is clear that the Football League has breached its own regulations in making the deeply unpopular decision to allow the Sisu-related company Otium to make a ground-sharing arrangement with Northampton.
“There is no justification to take the Sky Blues out of Coventry, and the Football League clearly have not considered the matter fully - or else they would not have arrived at this decision.
“ACL remains committed to keeping the Sky Blues in Coventry and will pursue all avenues available to us to do so.”
http://www.northamptonchron.co.uk/n...ourt-claim-against-northampton-town-1-5346357
A legal expert says the High Court claim lodged by Coventry City’s stadium owners against Northampton Town will be “very difficult” to prove - as it emerged the damages they are seeking are in the region of £2.5 million.
Arena Coventry Limited (ACL) announced on Tuesday that it was suing the Cobblers for damages over the deal for Coventry City to play their home games at Sixfields for at least the next three seasons.
ACL says it has a 25-year lease with Coventry City for them to play at the Ricoh, and the Cobblers are “inducing” the Sky Blues to play their home games at Sixfields.
But the deal with the Cobblers was cut by Otium - the preferred buyer for the Sky Blues - with the help of the club’s administrator Paul Appleton.
And James Ressel, senior lecturer in law at The University of Northampton, said an administrator has the power to adopt or cancel any contract, after weighing up the interest of the company and the creditors.
Mr Ressel said, after applying a balance of fairness test, the administrators can decide not to honour a contract, if this would help to achieve the purpose of the administration - which in this case, would be keeping Coventry City afloat.
He added: “The administrators can do pretty much what they want, subject to supervision of the court. ACL could apply to the court for specific performance of the contract, and if the court declines to grant the remedy they become unsecured creditors for any losses.
“It seems to be a political fight between the people in Coventry, who want the rent, and Northampton.
“The administrators can decide not to honour the lease contract, unless it has automatically be brought to an end as a consequence of the appointment of an administrator.
“They have the power to deal with contracts, and they don’t have to honour any contracts, providing this would help to achieve the purpose of the administration.
“To me, put very simply, all it seems they have to do is disclaim the contract. Trying to prove somebody induced you to break a contract is a very, very difficult type of claim to run.”
The Coventry Telegraph reports that a creditors’ meeting is due to be held today, Friday, which will result in Coventry City Football Club Limited being liquidated if ACL refuse to sign an agreement to exit administration.
The Chron understands the golden share - the right to play in the Football League - should pass to the preferred buyer Otium, meaning the Sky Blues would play at Sixfields as planned, but would start the new League One season on minus 15 points.
ACL has also complained to the Football League about its decision to allow Coventry to ground-share with Northampton.
A spokesman said: “It is clear that the Football League has breached its own regulations in making the deeply unpopular decision to allow the Sisu-related company Otium to make a ground-sharing arrangement with Northampton.
“There is no justification to take the Sky Blues out of Coventry, and the Football League clearly have not considered the matter fully - or else they would not have arrived at this decision.
“ACL remains committed to keeping the Sky Blues in Coventry and will pursue all avenues available to us to do so.”
imp:
Les Reid 
