The failure of the Football League's £140m High Court negligence claim against law firm Edge Ellison, is being heralded as a win for the professional indemnity market.
The Football League had alleged that Edge Ellison was in breach of duty in failing to protect its commercial interests during negotiations with ONdigital (now ITV Digital) for the licensing of its broadcasting rights in 2000.
When ITV Digital collapsed, the Football League was left with a substantial loss and argued that edge ellison should have advised it to consider seeking guarantees from ITV Digital's ultimate owners, Carlton and Granada.
However, the judgment found that the Football League was well aware of the risks of corporate insolvency and of the benefit of parent guarantees and also said that Edge Ellison had no obligation to advise the company to consider them in these circumstances.
Barlow Lyde & Gilbert senior partner, Richard Dedman, said: "This is an important decision not just for solicitors but for professional advisers generally, and will be welcomed as such by the professional indemnity insurance market."
