Rangers to pay Charles Green and Mike Ashley's legal bills
Rangers will have to pay the legal bills of its former chief executive Charles Green and billionaire businessman Mike Ashley after the club halted a legal action at the Court of Session.
Rangers will have to pay the legal bills of its former chief executive Charles Green and billionaire businessman Mike Ashley after the club halted a legal action at the Court of Session.
Lawyers for the 'Gers attended the court on Thursday because the club's current owners object to a 2012 deal which allowed Mr Ashley's Sports Direct to have the 'naming rights' to Ibrox Stadium.
The club's legal team alleges that Charles Green, Imran Ahmad, Brian Stockbridge and Derek Llambias - all former directors - acted negligently during their time at the club.
The Glasgow team believe the men didn't act in the business's best interests when they negotiated commercial deals with Ashley's Sports Direct.
The deals which the club are objecting to include an October 2012 agreement in which the directors allowed Sports Direct to have the 'naming rights' to Ibrox stadium.
Rangers believe that the naming rights were given to Sports Direct at a price well below their true market value.
On Thursday, lawyers acting for Rangers went to Scotland's highest court in bid to recover documents from Mr Green, Mr Ahmad, Mr Stockbridge, Mr Llambias, Sports Direct and Mr Ashley.
They believe the recovery of the documents would help their case against those involved in the deal.
However, during a two hour hearing at the Edinburgh based court, the lawyers acting for Rangers tried to amend the legal document which detailed what they wanted to recover.
The advocates representing Mr Green, Mr Ahmad, Mr Stockbridge, Mr Llambias, Sports Direct and Mr Ashley objected to the proposed changes.
They argued that they needed time to consult their clients about the amended proposals.
This prompted lawyers acting for Rangers to withdraw the proposed amendments and stop the bid to recover the documents.
Lawyers acting for the defenders in the case then asked the court for Rangers to pay their legal costs for the hearing as Thursday's proceedings were "unnecessary".
Judge Lord Brailsford agreed with the lawyers agreed with the submissions made by the lawyers appearing for the five men and the one business.
He added: "Today's hearing has been unnecessary and I award each of the defenders their expenses."
It is not known how much the Glasgow side will have to pay for Thursday's hearing. It is thought to be several thousands of pounds.
The legal action concerning naming rights was originally brought by Rangers to the Court of Session last year.
It is concerned with the alleged actions involving the club's former Chief Executive Charles Green, Commercial Director Imran Ahmad and its former finance director Brian Stockbridge.
The club is also concerned with the alleged conduct of Mr Green's replacement as chief executive Derek Llambias.
Lawyers acting for the side alleged that the directors didn't negotiate the best possible deal when dealing with Mr Ashley and Sports Direct.
The club's legal team believe Mr Green, Mr Ahmad and Mr Stockbridge breached their "fiduciary" duties when they negotiated the "naming rights" for Ibrox stadium.
The club claim the businessmen sold the naming rights for ÂŁ1 and they say the true market value for the deal was at least ÂŁ500,000 per year.
The agreement was in existence for approximately two years but was never enacted.
The directors who negotiated the deal claim that they didn't do anything wrong.
They say that if another company made a rival offer, Mr Ashley's firm would have to make another offer at a competitive price to retain the rights.
The club also object to the Partnership Marketing Agreement which was agreed in November 2014. This allowed Sports Direct to secure advertising space at Ibrox.
Lawyers acting for Rangers claim the advertising space was a sold for ÂŁ1 and this wasn't the true market value for the deal.
Lawyers acting for Rangers claim that Mr Llambias agreed that the agreement with Sports Direct should go ahead.
Rangers claim that Mr Ashley "assisted" in the breach of the "fiduciary duties" owed by the directors to the club.
Lawyers acting for the individuals being sued by Rangers deny any wrong doing.
The club is seeking to recover ÂŁ4,106,470.83 in the action.
On Thursday, Ken McGuire the advocate acting for Rangers, told Lord Brailsford that his client needed to recover documents which they believed would help their case.
However, during his submission, Mr McGuire said he needed to make amendments to what his clients wanted to recover.
Lord Brailsford then allowed the court to be adjourned for half an hour and Mr McGuire then made the proposed amendments.
Lawyers acting for the people being pursued by Rangers objected to the amendments being allowed.
They told the court that they needed to speak to their clients to seek their views about the proposals before they could outline their position to the court.
Mr McGuire then said he would withdraw the amendments and not proceed with the motion to recover the documents.
Rangers can go back to court on another date to seek recovery of the documents.
When the lawyer heard that lawyers acting for the defenders were seeking their expenses, Mr McGuire asked the court not to grant the payments.
He told the court that the expenses should be decided upon when the case is finally concluded.
However Mr Green's advocate David Massaro said he disagreed with Mr McGuire's submission.
Mr Massaro added: "The proper course of action to be taken is for Mr Guire to withdraw the motion and for expenses to be awarded."
Lord Brailsford agreed and awarded the bill.