MAY 27, 1996
Silverstone gets its money back
SILVERSTONE CIRCUITS LTD. has won a $5m law suit against its former legal advisors for their negligence in 1992 when Silverstone paid $8m for 50% of Tom Walkinshaw Racing's retail garage operations to form what was known as the Silverstone Motor Group. At the time Walkinshaw was chairman of both Silverstone Circuits Ltd. and the TWR Group. The legal advisors should have warned the Silverstone Circuits board that because of Walkinshaw's situation the deal would have to be ratified by the members of the British Racing Drivers' Club, the parent body of Silverstone Circuits Ltd.
Opposition to the deal - led by Ken Tyrrell - was widespread, and it was blocked by the BRDC which agreed to sell the shares back to TWR. Walkinshaw would only pay $3.5m - leaving the club with a loss of $4.5m.
The judge blamed the "flawed commercial judgment" of the Silverstone directors but said that the loss had ultimately been caused by the negligence of the legal advisors.
|Print News Story|