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The UK Football League has won token damages of £4 against the law firm that advised it on a disastrous television deal, but faces a bill for an estimated £5 pounds in legal costs.
A High Court judge in London ruled that the league was aware of the risks of the deal, and was responsible for its own losses.
The Football League, which represents the three divisions below England's premiership, had sought damages of £150 million for professional negligence from the law firm of Edge Ellison, now known as Hammond Solicitors.
Broadcaster ITV Digital collapsed in 2002 because it could not meet payments on its £140 million-pound deal with the Football League.
The Football League lost a suit to recover the money from ITV Digital's parents, Carlton Communications PLC and Granada PLC. The Football League then sued its legal advisers for failing to secure a payment guarantee from Carlton and Granada.
In the High Court, Justice Colin Rimer ruled that there had been two breaches of duty, but that neither caused substantial damage.
Rimer ruled that the Football League's Commercial Committee knew there was a risk of ITV Digital's becoming insolvent and effectively decided not to seek guarantees from the parent companies.
This News item appeared in issue 107 of JTW News - July - August 2006
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