Document Dump Blunder Gives Ex-Porn Baron the Edge in £200 Million Lottery Lawsuit
Media tycoon Richard Desmond gained an advantage in his £200 million (US$267 million) lawsuit against the UK Gambling Commission (UKGC) after a judge decided he could utilize thousands of inadvertently revealed documents as proof.
The situation originates from the Commission's choice to grant the profitable National Lottery contract to Czech company Allwyn, a decision Desmond argues lacked fairness and transparency. Desmond’s firm, Northern & Shell, was an unsuccessful contender for 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 network. Northern & Shell has additionally released various adult magazines and possessed adult television networks.
‘Unmatched Mistake’
It is common legal procedure for two opposing sides to share pertinent information prior to trial, a process referred to as pretrial disclosure. However, an employee at Hogan Lovells, the legal firm advocating for the UKGC, accidentally released 4,321 documents with confidential information to Desmond's attorneys.
Judge Nerys Jefford referred to it as an “unprecedented mistake.”
Northern & Shell aimed to modify its complaint to incorporate certain documents as evidence for the case.
Although the UKGC acknowledged that the majority of the released documents were applicable in the legal proceedings, it aimed to exclude a specific group of 128 files. These encompassed critical strategic issues like bid evaluations, internal preparations for potential legal action, and communication with the Department for Culture, Media, and Sport.
On Tuesday, Jefford decided that specific types of documents — especially those distinctly labeled as legally privileged or obviously related to legal advice — were inadmissible, as reported by The Financial Times. Nevertheless, she allowed the use of documents that either did not contain recognizable legal content or where it was uncertain if a lawyer had created them.
Jefford needed to assess if the materials were shared because of an “obvious error” and if a “capable” lawyer would have identified the disclosure as a mistake.
Northern & Shell is requesting a court ruling that the Gambling Commission acted improperly in managing the lottery bid, as well as £200 million in monetary damages.
Mediation Does Not Succeed
Northern & Shell rejected a settlement proposal from the UKGC in December that might 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 any additional delays in shifting control of the National Lottery from the previous operator Camelot to Allwyn. The current legal actions have already obstructed the transition, impacting the funds raised for charitable and community initiatives.
The trial is scheduled to begin in October. The UKGC has warned that any monetary compensation granted to Northern & Shell might reduce the funds available for these beneficial initiatives.