17.10.2022

Tanfield win Updated

UK based company Tanfield has won a $4.5 million settlement from Foulston Siefkin, its US based law firm in the 2013 sale of Snorkel to Ahern.

Tanfield retains a 49 percent stake in Snorkel although it is fighting an ongoing legal battle with Snorkel’s majority owner Ahern/Don Ahern regarding its acquisition of the controlling interest in the company October 2013.

The statement said:

“The company has reached an agreement to settle its claim against Foulston Siefkin, Tanfield's US based law firm at the time of the Contemplated Transaction, in relation to the UK Proceedings, on a no-fault basis for the sum of $4,500,000 including interest and costs (£3,978,903). For the avoidance of doubt, the agreed settlement should not be construed as an admission of liability or wrongdoing by Foulston Siefkin. Save as required under the AIM Rules for Companies, to which the company remains subject, the terms of the settlement remain confidential between the parties.”

Tanfield is still pursuing its claim against Ward Hadaway, the solicitor that acted for the company in the relation to the deal. A three week trial for the UK Proceedings is scheduled to begin on 7th November.

In the USA its battle with Snorkel/Xtreme is expected to move to a jury trial next summer. Don Ahern is clear that according to the 2013 agreement it is entitled to take over Tanfield’s 49 percent holding without further payments. See: Snorkel goes to Ahern. Tanfield objects and values its holding at £19.1 million.

UPDATE

On October 18th Tanfield announced that it had also reached out of court settlement with Ward Hadaway, in relation to the UK Proceedings on a no-fault basis for the sum of £2.9 million including interest and costs.
It adds that it will now "focus entirely on the US Proceedings, which are continuing and the jury trial is currently expected to take place around the summer of 2023."