The High Court in London has dismissed Northern & Shell-owned (N&S) Express Newspapers action against the Telegraph Group for breach of fiduciary duty after the vice chancellor, Andrew Morritt, cast doubt on the veracity of evidence given by Express Newspapers joint managing director Martin Ellice.


The ruling means that the Telegraph Group is not obligated to buy Express Newspapers 50% stake in West Ferry at the price set by the independent arbitrator Sir Anthony Evans later this summer.


Express Newspapers had claimed that the directors of West Ferry had failed to represent its interests after Express directors had been effectively removed from their positions.


Express Newspapers also claimed that the Telegraph Group was contractually obliged to buy West Ferry after an alleged conversation between Telegraph Group chief executive Dan Colson and Express Newspapers Ellice.
However, Sir Andrew Morritt gave greater credence to the evidence given by Colson. Morritt said: Mr Ellice demonstrated on at least three important occasions either an inability to see the point of the question or a determination no to answer it.
I do not have sufficient confidence in Mr Ellices recollection or veracity to place a reliance on his uncorroborated evidence. I have no such doubts about the evidence of Mr Colson.


The value of Express Newspapers stake in the Docklands plant is still a contentious point.
Colson said: We intend to buy out Express Newspapers share in West Ferry and we have made a firm offer based on calculations on the formula set out in the shareholders agreement.


If we go to arbitration and we dont get the correct price we wont pay. Were not in the habit of overpaying for assets.
N&S chairman Richard Desmond provocatively stated: We have great plans to move the business forward with our partner, Hollinger. It will be nice to get to grips with this business as we have with all the businesses in our group.


Story by John Davies