The Co-operative Group is to proceed with suing Andrew Regan in a £10m damages claim following his acquittal this week on charges of paying £2m in bribes to secure a lucrative supply deal with the Co-op.
After the verdict, Nick Eyre, secretary of the Co-operative Group, said: “After five years’ hard slog this is a travesty. However, it doesn’t end here. We will proceed with our civil action for damages, which we estimate to be in excess of £10m.
“A number of extremely valuable admissions were made by defendants in this case and in a civil action Regan does not enjoy the practical option of no response. We are confident of a favourable outcome.” The case stems from a 1995 supply agreement between CWS and Hobson, a firm owned by Regan. In addition to Regan, claims have been issued against former CWS chief general manager Alan Green, chief buyer David Chambers, Ronald Zimet and Trellis International. The Co-operative Group claims the defendants entered into an agreement or reached a common understanding that led Green and Chambers to breach their duty of employment by committing CWS to a detrimental supply agreement.
It is alleged that Regan, Zimet and Trellis induced and/or dishonestly assisted in the fraud.
Co-operative Group is also seeking recompense from Chambers related to a payment of £150,000 it made after he won a case for unfair dismissal.
The case concluded this week was the second retrial faced by Regan.
After the original trial, initiated by the SFO in March last year, Chambers and Green were each sentenced to three and a half years in prison for corruptly accepting inducements. The jury was discharged from reaching a verdict on a charge against Regan of theft of £2.4m from FE Barber, a subsidiary of Hobson.
The jury in Regan’s first retrial in January was discharged after just a few days.
At the second retrial, Regan’s defence barrister John Kelsey-Fry, said: “Regan and Hobson did not benefit because they did not get a contract that the Co-op was unwilling to give.”
Speaking outside court this week Regan said: “I have always maintained my innocence. This verdict, although a long time coming, is a great relief.”
John Wood
After the verdict, Nick Eyre, secretary of the Co-operative Group, said: “After five years’ hard slog this is a travesty. However, it doesn’t end here. We will proceed with our civil action for damages, which we estimate to be in excess of £10m.
“A number of extremely valuable admissions were made by defendants in this case and in a civil action Regan does not enjoy the practical option of no response. We are confident of a favourable outcome.” The case stems from a 1995 supply agreement between CWS and Hobson, a firm owned by Regan. In addition to Regan, claims have been issued against former CWS chief general manager Alan Green, chief buyer David Chambers, Ronald Zimet and Trellis International. The Co-operative Group claims the defendants entered into an agreement or reached a common understanding that led Green and Chambers to breach their duty of employment by committing CWS to a detrimental supply agreement.
It is alleged that Regan, Zimet and Trellis induced and/or dishonestly assisted in the fraud.
Co-operative Group is also seeking recompense from Chambers related to a payment of £150,000 it made after he won a case for unfair dismissal.
The case concluded this week was the second retrial faced by Regan.
After the original trial, initiated by the SFO in March last year, Chambers and Green were each sentenced to three and a half years in prison for corruptly accepting inducements. The jury was discharged from reaching a verdict on a charge against Regan of theft of £2.4m from FE Barber, a subsidiary of Hobson.
The jury in Regan’s first retrial in January was discharged after just a few days.
At the second retrial, Regan’s defence barrister John Kelsey-Fry, said: “Regan and Hobson did not benefit because they did not get a contract that the Co-op was unwilling to give.”
Speaking outside court this week Regan said: “I have always maintained my innocence. This verdict, although a long time coming, is a great relief.”
John Wood
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