• Premier League

Injunction granted against Texas court ruling

ESPNsoccernet staff
October 14, 2010
Martin Broughton received some good news after an injunction was granted against George Gillett and Tom Hicks' Texas court ruling © Getty Images
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Liverpool chairman Martin Broughton received a huge boost after Mr Justice Floyd granted an injunction in favour of RBS against George Gillett and Tom Hicks' Texas court ruling, paving the way for New England Sports Ventures to finalise their takeover of the club.

Gillett and Hicks' last-minute blocking tactic was nullified and the duo were strongly condemned in High Court for taking "unconscionable'' action to try to prevent the board pushing through the takeover.

The judge, Mr Justice Floyd, said he had given a ruling in London on Wednesday that meant the English directors of Liverpool could agree a £300 million takeover by John W Henry's NESV. But before the board could make any decision on Wednesday night, Hicks secured a temporary restraining order, against what he described as an "epic swindle", from the Texas court.

Mr Justice Floyd explained his ruling was not against the Texan court itself, but against the American duo. It is effectively an order compelling Gillett and Hicks to apply to the Texan Court to lift the injunction, on the basis that the Texan Court has no jurisdiction in this case.

A statement from Liverpool FC read: "The Independent Directors of Liverpool Football Club are delighted with the verdict of Mr Justice Floyd in the High Court this afternoon which now requires Mr Hicks and Mr Gillett to withdraw their Texas Restraining Order by 4pm tommorrow [Friday].

"We are glad to have taken another important step towards completing the sale process."

David Chivers QC, who told the judge that his clients, NESV, already considered themselves the new owners of Liverpool, asked the judge for a speedy serving of his orders on Hicks and Gillett so the deal with NESV can be completed and money transferred from the US.

He said if the deal was not completed on Friday, then Hicks and Gillett had succeeded in stopping the sale of Liverpool before repayment of the £234 million debt to RBS became due.

The judge gave Hicks and Gillett until 16.00 BST on Friday to comply with his orders but a lawyer for NESV suggested the duo would need to withdraw their claim by 15.00 BST to allow enough time for the sale to be completed.

Dallas hearing

After a second successive defeat in the High Court, the American duo have instructed their legal team to return to the 160th District Court in Dallas for another hearing with Judge Jim Jordan.

On Thursday evening, the Texan court announced that the decision on Hicks and Gillett's restraining order would be heard on Friday at 13.00 BST. An official for the court said the judge would be holding the hearing with legal representative from both sides.

© ESPN Sports Media Ltd.
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