Nabarro victory saves FA Cup contenders from financial ruin” /> Nabarro has landed a High Court ruling that has rescued Cardiff City FC from financial disaster.
The court rejected Swiss investment bank Langston’s claim that the FA Cup semi-finalists should repay a £24m loan immediately.
Langston had sought a summary judgment from the court on the basis of loan notes it holds.
But Mr Justice Briggs dismissed the application, meaning that the case could go to trial in two months if the parties cannot reach an out-of-court settlement.
If Langston had succeeded the Championship club would have faced possible administration.
In 2004 Langston had agreed to provide the multi-million-pound loan for the development of a new football stadium in Cardiff, together with a new athletics stadium, a sports centre, a residential development and an associated retail development – all on land owned by Cardiff City Council.
In 2006 another agreement was drawn up which stated that repayment could be postponed to 2016 if required. Langston argued that the 2006 arrangement never came into effect.
Briggs J held: “Far from causing the project to founder, the variation merely implemented by way of contract that which had been in the contemplation of all the parties before the 2006 agreement was made.”
The judge continued: “It follows that in my judgment there is on the assumed facts a sufficient basis for the conclusion that the club has, if necessary, a real prospect of obtaining the remedy of rectification which it seeks.”
Cardiff City chairman Peter Ridsdale said he was relieved with the outcome, but said the club has already spent almost £500,000 on its legal battle with Langston.
Michael Driscoll QC and Ciaran Keller, both of Maitland Chambers, were instructed by Hextalls for Langston, while David Wolfson of One Essex Court acted for Cardiff City FC under the instruction of Nabarro partner Jonathan Warne.