Judgement has been delivered in the eight year legal dispute between two conservatory makers in the north-west of England, with The Burnden Group claiming victory over Ultraframe. The latter must now …
Judgement has been delivered in the eight year legal dispute between two conservatory makers in the north-west of England, with The Burnden Group claiming victory over Ultraframe. The latter must now pay a legal bill thought to exceed GBP 5 million mark after the decision by the Court of Appeal. Ultraframe was unsuccessful in its quest to have the court overturn a 2005 judgment in favour of Burnden; the court also refused Ultraframe permission to appeal to the House of Lords. The bitter dispute, which has seen both sides claim victory along the way, centres on the intellectual property rights of two Ultraframe subsidiaries, Northstar and Seaquest. Ultraframe bought the businesses, which were in receivership, in the early 1990s from Burnden founder Gary Fielding. However, the deal turned sour and the two sides launched a dispute over intellectual property rights. The latest action was the result of Ultraframe“s appeal over the costs in a High Court judgment for Burnden“s in October 2005. Payment was delayed pending the appeal decision but, following dismissal of the appeal, Ultraframe has paid Burnden GBP 1.84 million on account. The total payable by Ultraframe could exceed GBP 5 million, with interest still accumulating, and the process for the amount to be fixed by the court has already begun. The intellectual property rights at the centre of the dispute have also now been acquired by Burnden. Gary Fielding, managing director of The Burnden Group, said he was pleased to bring the litigation to an end with no dispute about the winner. He said: “This has been a long and drawn-out legal process, and it is a relief that we have finally received a repayment from Ultraframe in respect of the costs we have had to incur”. “As the Court of Appeal told Ultraframe, in no uncertain terms, they lost. The claims and counter-claims in this case have caused a great deal of confusion and uncertainty in the trade. With all matters now fully resolved, we are confident of a bright future”. Ultraframe has been through a difficult period in the last few years: it endured a series of profit warnings and saw its share price decline in tough trading conditions. However, in summer 2006 it was bought by double glazing entrepreneur Brian Kennedy, through his Latium group of companies, in a GBP 29.7 million deal. A spokesperson for Ultraframe said: “Latium was fully aware of the pending payment, and the money was accounted for. In fact, we had factored in more than the outstanding costs, and the judgment will not affect the Ultraframe business in the UK”.