BusinessBusiness RecoveryHays in £5.5m settlement with Consignia

Hays in £5.5m settlement with Consignia

Support services company Hays has today agreed to pay out £5.5m worth of damages to postal service company Consignia.

Consignia claimed Hays had infringed the Postal Services Act 2000 and the British Telecommunications Act 1980 by delivering specialised business post such as travel documents.

The case went to court in June 2001 but in September the company was given permission to deliver the documents. A Hays spokesman told AccountancyAge.com Hays agreed to settle retrospectively with Consignia because it still needs to work with the mail company under the new post regime.

Stuart Sweetman, group managing director for Consignia, said: ‘We were justified in bringing the proceedings against Hays, as this payment by them recognizes.

‘We have also taken a stand to show that Consignia will protect its ability to provide the universal service by taking action when it sees other operators infringing its rights.’

Neil Tregarthen, managing director of subsidiary Hays DX, said: ‘We have reached agreement with Consignia in the interest of ensuring an orderly market for the future.’

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