Liverpool superclub Cream are facing a substantial pay-out after a court last night ruled in favour of its estranged co-founder in a long-running dispute over the value of his shares.
The conflict has been running between Stuart Davenport and the dance music company - now a hugely valuable global brand – since he was 'removed as a director' in August, 2004.
The company said Mr Davenport's 26.7 per cent stake in the company was worth #295,000, but he claimed his shares were 'very much more' valuable than that.
Yesterday, London's Appeal Court ruled against Cream and in favour of Mr Davenport.
At the Appeal Court, Cream Holdings and Mr Davenport's fellow shareholders, James Barton and Ingenious Ventures Ltd, which owns 48 per cent of the company, argued Mr Davenport was bound by the #295,000 figure, based on an independent accountancy firm's valuation.
But Mr Davenport, in his 60s, insists that #295,000 is only a fraction of what his shares are worth, and has fought through the courts to obtain what he sees as 'fair value' for his holding.
The case was originally taken to London's High Court after Mr Davenport was offered just #50 for his stake.
Three Appeal Court judges - Lord Justice Mummery, Lord Justice Sedley and Lord Justice Wilson -backed Mr Davenport, who joined Cream in 1995, ruling that the accountancy firm's valuation was not binding upon him.
The court's decision still leaves open the issue of the price Mr Davenport should get for his shares and, unless settlement terms can now be reached, there remains the spectre of further litigation.
Cream were unavailable to comment on the issue last night.
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