Manches hit by £570k Gizmondo bill

Manches has failed in an attempt to recover £570,000 of unpaid fees from the chief executive of bankrupt video games company Gizmondo.

This morning (Thursday 30 November) Judge Philip Price QC, sitting as a deputy High Court judge, ruled that there had been no guarantee made between Carl Freer and Manches over payment of the fees.

As reported by The Lawyer (17 April 2006) the claim was launched by Manches after Gizmondo, formerly owned by Tiger Telematics, went into liquidation in February this year.

The claim said that Freer was personally liable for the fees owed to Manches by Gizmondo. Manches said that when Freer signed the engagement letter with the firm on behalf of Gizmondo he entered into a guarantee.

However Judge Price QC disagreed, finding that there was no guarantee.

Hal Branch, a litigation partner at West End private client boutique Lass Salt Garvin acting for Freer, said: “Mr Freer did not intend to bind himself to the payment of sums owing by the companies to Manches.”

Branch instructed Hardwicke Buildings’ Peter Kirby for Freer.

Manches’ litigation partner Clive Zietman instructed Four New Square’s Justin Fenwick QC. Zietman declined to comment.

Manches’ annual turnover was £25.7m last year.