Media tycoon Richard Desmond has gained an advantage in his £200 million (US$267 million) case against the UK Gambling Commission (UKGC) following a court decision that allows him to utilize thousands of inadvertently revealed documents as evidence.
The case arises from the Commission’s choice to grant the profitable National Lottery contract to Czech firm Allwyn, which Desmond argues was neither just nor clear. Desmond’s firm, Northern & Shell, failed to win the lottery concession, which is among the largest public contracts in the UK.
The billionaire established OK! Magazine has possessed The Daily Express newspaper and the UK's Channel 5 television station. Northern & Shell has additionally released a selection of adult magazines and possessed adult television networks.
‘Unmatched Mistake’
It is customary legal procedure for two contending parties to share pertinent information prior to trial, a process referred to as pretrial disclosure. However, an individual at Hogan Lovells, the law firm for the UKGC, accidentally released 4,321 documents with confidential information to Desmond’s attorneys.
Judge Nerys Jefford characterized it as an “unmatched error.”
Northern & Shell aimed to modify its complaint to incorporate certain documents as proof in the case.
Although the UKGC acknowledged that the majority of the presented documents were applicable in the legal case, it aimed to exclude a specific group of 128 files. These included crucial strategic issues like bid evaluations, internal preparations for potential legal action, and communication with the Department for Culture, Media, and Sport.
On Tuesday, Jefford determined that specific types of documents — especially those distinctly labeled as legally privileged or obviously related to legal counsel — were not permissible for use, as reported by The Financial Times. She allowed the use of documents that either had no recognizable legal content or where it was uncertain if a lawyer had created them.
Jefford needed to decide if the materials were shared because of an “obvious mistake” and if a “competent” lawyer would have identified the disclosure as incorrect.
Northern & Shell is requesting a court ruling that the Gambling Commission acted illegally regarding the lottery tender process, in addition to £200 million in monetary damages.
Mediation Is Unsuccessful
Northern & Shell rejected a settlement proposal from the UKGC in December that could have been valued at up to £10 million, as reported by The Guardian.
The Commission was said to be eager to reach a settlement to prevent additional delays in shifting control of the National Lottery from previous operator Camelot to Allwyn. The current legal battles have already obstructed the transition, impacting the resources raised for charitable and community initiatives.
The trial is scheduled to begin in October. The UKGC has warned that any financial payout granted to Northern & Shell could reduce the funds available for these charitable causes.