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Issue 427



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Carphone's EasyAir strike out application remains

August 15, 2008

Opal parent Carphone will not withdraw its strike out application against EasyAir's GBP13 million damages claim

Carphone Warehouse's fixed line business Opal Telecom said last week the judge in its hearing for securities with EasyAir did not "back" EasyAir's case.

Opal is attempting to strike out a claim by EasyAir for £13 million in damages for a breach of a trading contract.

Tim Morris, group corporate counsel at Carphone Warehouse, said the strike out application stands. He maintained Opal would fight the claim "vigorously".

The two parties went before Manchester High Court as Carphone sought securities from EasyAir to cover legal costs in the event Carphone wins. Morris pointed out Justice Hodge's statement in Manchester High Court last month that EasyAir's claim was "bona fide" meant simply it was made in good faith, and not that he "backed" the claim.

Justice Hodge stated in court that he was not in a position to evaluate the likelihood of an EasyAir win.

Morris said: "The court did not back EasyAir. It said, for the claim to be struck out, we need to go through a process. And we have got the security of costs we went for. So, we won that hearing. The strike out application stands."

Opal applied for around £425,000 as a total sum for legal costs to completion of the case. The £90,000 the court requested EasyAir to put up was the sum for the legal dispute to date.

• Meanwhile, David Goldie, chief of Carphone's telecoms division, is also stepping down from the board, although he too retains his operational role.

 

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