Newcastle Airport Loses Legal Battle

Newcastle Airport, UK, has lost a legal battle over claims two of its directors were allowed to negotiate themselves about £8 million (US$12.8m) in bonuses.
The sum was split between former airport Chief Executive John Parkin and the late Finance Director, Lars Friis, after an airport refinancing deal in 2006.
Newcastle International Airport Ltd, which is co-owned by seven local councils, claimed that law firm Eversheds, legal advisers on the refinancing deal, should not have taken instructions from Mr Parkin and Mr Friis about their own contracts.
However, Eversheds was cleared by the judge who ruled that the fault lay with the airport bosses that had “failed” to properly scrutinise the contracts.  The airport says that it respects the judge’s decision, but is “disappointed” and said it will now take legal advice to consider whether it should lodge an appeal.
A spokesman for law firm Eversheds said, “The judgment clearly states that we acted in good faith on the basis of instructions, which it was entitled to accept.  We hope that
this now concludes this matter.”