The first government-backed legal action by an academy trust against its former directors has ended after the chain reached a settlement with the last three remaining defendants.
But after four years and hundreds of thousands of pounds of public money spent, it is not clear how much the trust has managed to claw back, because the settlement agreements are confidential.
In 2021, the Department for Education gave its financial backing to the SchoolsCompany Trust to sue six former trustees for £2.8 million, the amount the chain owed the government after giving up its schools in 2018 amid accusations of financial mismanagement.
In the High Court today, judge Master Dagnall approved orders staying proceedings against former CEO Elias Achilleos, his company SchoolsCompany Limited and the trust’s former finance director Everton Wilson after lawyers confirmed settlements had been reached.
It comes after a settlement agreement was also reached last year with Patrick Eames, another former director.
Claims against another former trustee, Heinrich Zimmermann, were “stayed” last year, while another, Selena Thomas, was removed from the lawsuit in 2021.
Speaking today in the High Court, Master Dagnall commended “everybody for having achieved a consensual solution”, and said by doing so the parties were “taking control of their own destiny, rather than leaving it up to the court”.
Schools Week has documented how the case has dragged on for years and cost the DfE hundreds of thousands of pounds.
The court heard last year that the trust had racked up legal costs of £900,000. Its costs are now likely to be substantially higher.
DfE had wanted to recoup £2.8m
The trust sought damages of almost £2.8 million, covering business trips around the world, thousands spent on consultants and holiday cottages – and even wanted trustees to repay their salaries.
“Excessive” expense claims, luxury hotel stays and a £380 bill for a meal in an upmarket steak restaurant were also among 120 “losses” set out by the trust in its claim.
However, the confidential nature of the settlement agreements mean the public may never know what the trust was able to claw back from its former trustees.
It comes after criticism of the “convoluted” allegations.
Last year, John Meredith-Hardy, acting for Wilson, said the trust had “incurred almost £900,000 worth of costs so far. Their pleadings are still not in order. It’s scandalous, it’s public money.”
A defence filed on behalf of Eames before he reached a settlement said the trust’s claim was “exceptionally long, convoluted and, at times, difficult to understand”.
Court documents also reveal the trust was last year ordered to pay Wilson £11,000 as a contribution to his legal costs, after asking for the adjournment of a hearing in July.
The trust was also ordered to pay £266 to Achilleos and SchoolsCompany Limited. Achilleos has been representing himself in court.
The trust and DfE were approached for comment.
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