Fury at ITV bigwigs over Peter Andre ‘death threat’ case that cost them £10m
ITV bosses have wasted more than £10million on a catastrophic legal dispute in which star witness Peter Andre was described as a liar, The Mail on Sunday has learned.
In documents seen by the MoS, a High Court judge criticised Strictly contestant Andre as an ‘unsatisfactory witness’ who fabricated evidence, including extraordinary allegations of death threats.
But the judge also had harsh words for the television company, saying it ‘has had to pay the consequences’ for its hard-nosed approach towards an independent TV producer, Neville Hendricks.
Last month, Mr Hendricks and his production company were awarded more than £4million in damages from ITV2 after successfully claiming their contract had been unfairly terminated. With costs, the bill to ITV shareholders will be closer to £11million, leaving serious questions for ITV chief executive Adam Crozier and director of television Peter Fincham about why the channel pursued the case – using ‘bully-boy’ tactics that threatened to bankrupt their victim.
The commercial case focused on ITV2’s wrongful termination of production agreements for reality TV shows featuring Andre and Kerry Katona that Hendricks’s company had produced.
The termination came in 2011 after Hendricks split with his then wife and business partner, Claire Powell, a leading showbusiness fixer and also Andre’s agent.
Relations between the former couple deteriorated and, by the summer of 2011, Ms Powell was clearly ‘looking for an opportunity to replace’ Hendricks’s company, the judge said. Andre was ‘party to the scheme’, he added.
The documents show that , although ITV2 initially did not support the scheme, they later changed tack to support the ‘talent’ – Andre.
Mr Justice Flaux castigated the channel for its ‘hard-nosed approach’ which included not paying Hendricks an outstanding invoice ‘for which it had no defence’ and for refusing to engage with his claim for loss of profits.
During proceedings, Andre alleged that Ms Powell had told him Hendricks had sent her death threats. Hendricks denied the allegation and the judge later concluded it had been fabricated by the singer.
Mr Justice Flaux was critical of the fact that Sarah Clarke, director of business and legal affairs at ITV and the only representative the broadcaster called to give evidence, had been given the chance to withdraw her evidence – yet chose to continue supporting Andre’s death threat claims.
The judge said it ‘was all part and parcel of an attempt by ITV2 to paint Mr Hendricks in a bad light’.
Despite the judge’s comments, ITV2 has now lodged an appeal.
Mark Stephens CBE, a leading media commentator and commercial litigator, described the dispute as ‘a catastrophic failure for Peter Andre and ITV’. He said: ‘If you were a shareholder, you would want a very clear explanation of how a road crash of £10million-plus occurred. The judgments of the board and legal advisors have got to come under close scrutiny.’
Neville Hendricks, who launched proceedings, was the producer behind such programmes as Peter Andre: The Next Chapter broadcast on ITV2.
He was almost forced into bankruptcy during the four-year battle and, according to a friend, remains furious at the way he has been treated.
‘This was purely collateral damage on ITV’s part,’ the friend said. ‘They thought it made more sense to stick with the talent than to honour a bona fide contract.
‘They were arrogant and convinced they would win. They’ve put Neville through hell. He hasn’t worked since this happened and has been forced to sell his £2.5 million home in Twickenham, London.
‘It’s bully-boy tactics and an abuse of corporate power. ITV’s bigwigs Peter Fincham and Adam Crozier really ought to be ashamed of themselves.’
Andre said in a statement that he was ‘disappointed’ that the judge hadn’t accepted some of his evidence but maintained that he hadn’t lied.
An I TV spokesman said: ‘We are disappointed in the judgment and will be carefully considering all our options.’