Hays settles Consignia court case for £5.5m
Hays (LSE: HAS.L – news) is paying £5.5 million in damages and costs to Consignia. The payment is in settlement of Consignia’s damages claim against Hays. It relates to infringements of the Postal Services Act 2000 and the British Telecom (LSE: BT.L – news) munications Act 1981.
Neil Tregarthen, managing director of Hays DX, says: “We are pleased Hays DX can now concentrate fully on developing its products and services to meet the needs of its clients. “We have reached agreement with Consignia in the interest of ensuring an orderly market for the future.”
Stuart Sweetman, managing director of Consignia’s strategy and business development group, says: “We were justified in bringing the proceedings against Hays, as this payment by them recognises.We have also taken a stand to show that Consignia will protect its ability to provide the universal service by taking action when it sees other operators infringing its rights.”
from the Finanical Times
Hays and Consignia reach out-of-court settlement
By Andrea Felsted in London
Published: March 18 2002 17:54 | Last Updated: March 18 2002 18:20
Hays has reached a £5.5m ($7.8m) out-of-court settlement with Consignia, signalling that the postal group intends to put up a tough fight against a quick erosion of its monopoly.
“We have taken a stand to show that Consignia will protect its ability to provide the universal service by taking action when it sees other operators infringing its rights,” said Stuart Sweetman, managing director of strategy and business development.
Consignia began legal action last July over what it described as “cream-skimming” in connection with a service Hays launched delivering tickets and travel documents for travel companies to their branches and travel agents.
It initially sought an injunction to stop Hays carrying out the service, but this was refused.
Hays was awarded an interim licence for the service along with two other interim licenses, by PostComm, the postal regulator, in September.
However, Consignia continued to seek damages for the period before the licence award.
The cost of the settlement, and up to £1m of Hays’ costs, is expected to be disclosed separately in its results for the year to June 30.
Neil Tregarthen, managing director of Hays DX unit, said: “Hays can now concentrate fully on developing its products and services to meet the needs of its clients. We have reached agreement with Consignia in the interest of ensuring an orderly market for the future.”
“We were justified in bringing the proceedings against Hays, as this payment by them recognises,” Mr Sweetman said.
Hays said last month, as it unveiled a 15 per cent fall in first-half pre-tax profits from £121m to £103m, that it wanted its mail licences put on a firmer footing by the postal regulator. It said their interim status was deterring potential customers. Hays shares rose 7½p to 175½p.
