A JUDGE has told Blackburn Rovers it must pay more than £800,000 into an account until a decision over ex-manager Henning Berg’s contract settlement can be made.
‘Significant’ delays in the submission of statements by the football club to the court and Berg’s solicitors, meant the hearing into the former boss’s claims had to be adjourned until April 26.
In the mean time, Rovers must transfer £843,750, the sum Berg alleged was owed to him after tax, into a joint account held by both parties’ solicitors.
The total sum Berg, who was sacked after 57 days in December, argued was owed to him before tax was £1.6million.
He has already received £562,500 from the club.
Manchester Civil Justice Court heard that Blackburn Rovers had claimed managing director Derek Shaw did not have the authority to enter into the contract signed by Berg, with shareholders saying they had only agreed to 12 months’ severance, rather than three years.
Judge Mark Pilling said the claim Shaw did not have the authority to commit the club was ‘meagre in the extreme’ and that he had come close to dismissing their arguments ‘out-of-hand’.
He said: “The points that arise from the witness statements, amongst other things, focus upon the authority of Shaw to enter into the contract with the claimant.
“The assertion in round terms is that the contract that was entered into was one that was authorised by the club’s shareholders and was entered into in terms that differ significantly from those that had previously been approved by the majority shareholders.
“It is also suggested in relation to that order that a 12 month notice provision was removed by Shaw from the different contract previously approved by the majority shareholders.
“The assertion made on behalf of the defendant is that Mrs Desai, who herself is a shareholder, believed that the contract that had been entered into provided for termination on 12 months’ notice and that was all she had authorised.”
Rovers issued a statement on their official website on April 9 in which they said ‘the owners would like to state there is no investigation into this matter with regard to managing director Derek Shaw’.
However, the club’s lawyers yesterday admitted that part of the statement was not correct, and that an investigation had commenced on April 3 into Shaw’s role in Berg’s contract.
They added that Shebby Singh had been due to hold a disciplinary hearing with Shaw on Monday, but it was postponed because the club’s global advisor is currently obtaining a visa to return to the UK after meeting Venky’s in India.
Judge Pilling added that Blackburn Rovers had not complied with civil procedure rules and must now pay the costs incurred by delaying the judgement.
He said: “It appears to be that late on Monday, an application notice was drawn by the defendant’s new solicitors and sent to the claimant’s solicitors.
“The application notice is defected because it seeks an order to withdraw the admission that had previously been made that the sums were due.
“In part, reference is made to an attached witness statement, but no statement was attached.
“Significantly after close of normal business hours, a different statement was sent to the claimant’s solicitors.”
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