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Shell seeks guarantee over costs in Don case


Marketing Week: Shell seeks guarantee over costs in Don case

24 March 1995

Picture Caption: Shell: Seeking £62,000 cost security to guard against Don losing

In the latest chapter in the long-running legal dispute between Don Marketing and Shell UK (MW February 24), the oil giant has broken its silence by publicly casting doubt on the sales promotion agency’s financial position.

In a statement Shell said it is applying to the court for security for costs in the event of Don losing the case. Shell is asking for £62,000 costs security. Don says it will fight the claim. The application will be heard on April 13 and Don says it will go to the appeal court if it is asked to pay.

“Shell is doing all it can to stop these cases coming to court and using its financial weight against a small firm,” says Don managing director John Donovan.

In a similar vein, Shell says it will not be responding to Don’s invitation to instigate a libel action because it believes the agency would not have the funds to pay costs and compensation.

But Donovan, who readily admits to conducting a publicity campaign against Shell, says the claim is a smokescreen. “The real reason Shell won’t instigate a libel action is that it knows we have evidence to back up every-thing we have said,” he claims.

The dispute, running since last year, revolves around Don’s accusation that Shell used its ideas in a series of promotions, without permission or payment.


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