1 Dec 2011 16:01
Formation Group plc ("Formation" or the "Company")
Update on Litigation and the Aldgate East Property Development
Update on Litigation
Further to a judgment delivered today at the Court of Appeal, the Company provides the following update in relation to the litigation being conducted through its wholly owned subsidiary, Proactive Sports Management Limited ("Proactive"):
Claims against Stoneygate 48 Limited ("Stoneygate")
·; Proactive's claim against Stoneygate, a company owned by Mr Wayne Rooney, was two pronged; the first claim related to the enforcement of the contract relating to an image rights representation agreement ("IRRA") dated 16 January 2003, and the second claim related to restitutionary compensation for services provided by Proactive to Stoneygate for which Proactive has not been paid.
·; Under the judgment delivered by the Manchester Mercantile Court on 15 July 2010, the first claim in contract was unsuccessful, but, importantly, Proactive did succeed in its claim under restitution. The counterclaim of Stoneygate was defeated in its entirety.
·; Proactive subsequently appealed certain aspects of the judgment. Under the judgment delivered by the Court of Appeal today, Proactive was successful in its appeal that it is entitled to commission on payments made by third parties after termination of the IRRA in respect of contracts negotiated by Proactive prior to termination. However the Court of Appeal upheld the previous judgment in relation to the contractual enforceability of the IRRA.
·; Pursuant to the judgment, Stoneygate will have to pay restitutionary compensation to Proactive. This figure however cannot yet be quantified because the Court has decided that such quantification should be the subject of further assessment.
·; The Court has not as yet made any determination with regard to the costs of the Appeal. Such determination will be made within the course of the next few days.
Claim against Speed 9849 Limited ("Speed")
·; Under the judgment delivered by the Manchester Mercantile Court on 15 July 2010, Proactive succeeded in its claim against Speed, a company owned by Mrs Coleen Rooney, and was awarded approximately £90,000 plus a substantial proportion of its costs.
·; Proactive subsequently appealed against the judge's conclusion that there was no implied contract between Speed and Proactive on the same terms as to commission contained in the IRRA. Today the Court of Appeal has upheld Proactive's appeal.
·; Pursuant to today's judgment, Proactive will be due further compensation from Speed. This figure however cannot yet be quantified because the Court has decided that such quantification should be the subject of further assessment.
Update on Aldgate East Property Development
As announced on 30 August 2011, Julius Properties Limited ("JPL"), a Guernsey registered company that owns the property development above Aldgate East Station, London ("Aldgate"), has entered into a conditional agreement for the disposal of Aldgate to a UK national housebuilder.
The two conditions of this agreement must be satisfied by no later than 22 February 2012. The Company is pleased to announce that one of the two conditions relating to this agreement has now been satisfied. The Directors are advised that the remaining condition to the disposal agreement is expected to be satisfied shortly and a further announcement will be made to update shareholders in due course.
Contact Details
Formation Group PLC
David Kennedy
Chief Executive Officer
Tel: 020 7920 7590
NOMAD to Formation Group PLC
Zeus Capital Limited
Ross Andrews Tel: 0161 831 1512
Tom Rowley