Former caterer sues Wembley stadium over £7m

Caterer Letheby & Christopher is suing Wembley National Stadium and the Football Association in a £7m dispute. The claim follows the ending of the caterer's contract because of the redevelopment of Wembley Stadium. The contract should have run until October 2003, with an option to extend for five years. Letheby & Christopher says it was entitled to end the agreement and claim compensation for breach of contract after Wembley negotiated unsuccessfully for a new catering agreement. The catering company is asking the High Court to order Wembley and the FA to pay £7m into a separate bank account, or to arrange for a bank to give an unconditional guarantee for £7m. The money is security for any compensation which might be awarded. Wembley's chief executive wrote on 8 November 2000 saying that, as it appeared that the parties were unlikely to agree terms before the stadium formally closed, he needed to put in place the necessary arrangements to bring the agreement to a close. He had instructed solicitors Allen and Overy to agree details of the £7m security. Solicitors for both side exchanged letters and confirmed the agreement was terminated because of Wembley's deemed breach of contract, according to the High Court writ. But no final or reasonably acceptable draft has been submitted despite frequent reminders, the writ says. Letheby & Christopher claims that both Wembley and the FA failed to hand over the security within a fortnight, in breach of the agreement, and are asking the court to order them to comply with the agreement without delay.