Legal action vs Cornerstone Media International Ltd and Mr Nicholas Malcolm Cooper
Following a Court hearing on March 2nd we can also now explain the legal action which has been taking place between our company and our former sales agent, Cornerstone Media International Ltd and its director and 99% owner Nicholas Malcolm Cooper.
Retro and Cornerstone entered into a sales agreement on May 3rd 2015 which related to Retro’s product, the Sinclair ZX Spectrum Vega games console. Retro terminated the agreement on May 9th 2016 for breaches of that agreement. Retro then commenced proceedings against Cornerstone on July 27th 2016 in the Chancery Division of the High Court. On August 18th 2016 Chief Master Marsh made an Order that Mr Cooper, as the sole Director of Cornerstone was to file and serve within 7 days of the date of service of the Order an account of all sales of the Vega. That Order was served on Mr Cooper on August 23rd 2016. Mr Cooper failed to comply with that Order and with three subsequent Court Orders, and on January 31st 2017 Mr Cooper put Cornerstone into liquidation.
At a hearing at Central London County Court on March 2nd 2017 District Judge Lightman Ordered that, inter alia :
1.Mr Cooper be added to Retro’s claim as a Second Defendant.
2.Mr Cooper shall pay the costs of the Claim to date, such to be subject to a Detailed Assessment, if not agreed on an indemnity basis.
3.Mr Cooper shall pay the sum of £10,000 as an interim payment in respect of the said costs liability.
4.Mr Cooper shall pay the costs of the hearing of January 6th 2017 which the Court summarily assessed in the sum of £20,000.
5.Mr Cooper shall pay the costs of Retro’s Application heard on March 2nd 2017 which are summarily assessed in the sum of £12,444.
By adding Mr Cooper as a second defendant the learned Judge made Mr Cooper personally liable. As well as the legal costs indicated above Mr Cooper’s personal liability, as stated in the liquidator’s “Report to the Creditors” on January 31st 2017, is an additional £109,725.
During the course of this legal dispute Paul Andrews and Christopher Smith, both former Directors of Retro and each of them a 25% shareholder in Retro, attempted unsuccessfully, on more than one occasion, to prevent Retro from pursuing this legal action against Cornerstone, and actively supported Mr Cooper in his attempts to avoid providing Retro’s lawyers and the Court with the information required by the Court Orders, even though Retro’s legal action is obviously intended to benefit Retro by obtaining an accounting of sales of the Vega effected by Cornerstone and Mr Cooper and by recovering the corresponding sales revenues owed to Retro by Cornerstone (and now by Mr Cooper personally). Once again, the question needs to be asked of Mr Andrews and Mr Smith, as to why they would wish to damage Retro by attempting to prevent the recovery of a significant amount of money owed to the company. The recovery of this money would enable Retro to make additional royalty payments to all the games rights owners whose games are in the Vega, and to make an additional donation to our chosen charity, Great Ormond Street Hospital Children’s Charity.
We hope that our Indiegogo backers and others, who have been frustrated by the delays in this project, will now understand some of the problems under which our company has been labouring since last April.
All of us at Retro Computers Ltd very much regret these delays. We are at least a thousand times more frustrated than you are. We have been battling for almost 11 months against various actions and attempts, mostly by a small group of people, aimed at preventing the Vega+ from seeing the light of day and at bringing our company down. But despite these slings and arrows of outrageous fortune, we are as determined as ever to complete the Vega+ and deliver to all our backers and to retail customers a truly great product.
To the many of who have been sending us messages of encouragement, we thank you most sincerely. Your continuing support is part of the impetus that enables us to keep our determination.
[Chairman – Retro Computers Ltd]
March 10th 2017