Stewarts Law leads on Hull City FC's lawsuit against ex-chairman Duffen
Stewarts Law is advising Hull City FC on its claim against former chairman Paul Duffen for misuse of the club's expenses and improper payments to football agents. It is understood that Stewarts fraud specialists Andrew Shaw and Clive Zietman have been instructed on behalf of Hull City, with the claim filed in the High Court last week (15 January).
January 22, 2010 at 06:04 AM
3 minute read
Stewarts Law is advising Hull City FC on its claim against former chairman Paul Duffen for misuse of the club's expenses and improper payments to football agents.
It is understood that Stewarts fraud specialists Andrew Shaw and Clive Zietman have been instructed on behalf of Hull City, with the claim filed in the High Court last week (15 January).
In the claim form, Hull City allege that Duffen used the Premier League club's money for his own personal expenditure and that money was paid by third-party football agents to Reef Securities, a Bahama-registered company, on Duffen's behalf, in return for which Duffen procured that Hull would sign contracts with the agents for business.
Hull City are claiming damages and/or equitable compensation, in addition to the proportion of Duffen's salary attributable to the days on which he was absent from the stadium, his designated place of work.
The club said in a statement: "The company believes that Mr Duffen has acted in breach of his employment contracts and fiduciary duties as a director, through the use of company monies for his own personal expenditure and other wrongdoings. The company also believes that he has acted in breach of his employment contracts and fiduciary duties as a director.
"Consequently, on 15 January last, the company successfully sought and obtained a High Court order freezing Mr Duffen's assets."
Duffen (pictured above left), who was represented at the preliminary hearing by Lexa Hilliard QC of 3-4 South Square, has claimed that the club is reacting to his own legal proceedings.
Duffen told the Daily Express: "This is in response to legal action initiated by me in early December with regard to monies that are owed to me under the agreed terms of my resignation in October. The matter is now in the hands of the court and I'm happy for that to run its course."
However, the club denied the claim, stating: "The company also wishes to clarify that, contrary to a tabloid newspaper article today, Mr Duffen has not issued any legal proceedings against the company and Hull City does not believe he has any basis whatsoever for doing so."
The news comes after the resignation of Duffen as Hull chairman at the end of October, when he was replaced by former Derby chairman Alex Pearson.
Duffen joined Hull in June 2007 and oversaw the club's promotion to the Premier League for the first time in its history in 2008.
It is understood that Wragge & Co is defending Duffen.
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