REVEALED: Sunderland launch a legal claim for £20M against leading law firm Mishcon de Reya, accusing lawyers of FORGETTING to file an appeal in the ill-fated signing of Inter Milan star Ricardo Alvarez in 2014
Sunderland have launched a £20 million legal claim against a leading law firm in a long-running saga sparked by the botched signing of attacking midfielder, Ricardo Alvarez, from Inter Milan in 2014.
The Black Cats accuse the high-profile legal practice, Mishcon de Reya, of missing a crucial deadline to file an appeal in the case, which had already seen the club pay out to both Inter and Alvarez.
The two parties met at the High Court on Friday, as they prepare for a hearing that is expect to last for a week
Sunderland argue that by allegedly missing the appeal deadline at the Court of Arbitration for Sport (CAS), which is based in Lausanne, Switzerland, Mishcon denied them the chance to overturn judgements that had already been made and recoup their money.
By this stage the club had been ordered to pay Inter Milan almost £10M and been forced to handover £5.8M to Alvarez in lost earnings following a hearing at FIFA. The total bill with costs had reached £20M, it is claimed.
In documents filed with the court, Sunderland's lawyers said: 'The club claims damages for loss of a chance in reversing the findings of a FIFA DRC [Dispute Resolution Chamber] arbitration panel.
'It lost this chance due to the negligence of Mishcon in failing to file the appeal brief on time.'
Sunderland are now asking the court to award damages based on what it thinks the chances of success were in its appeal.
Both parties submitted documents to the court last year. In its submission, Mishcon said that its 'understanding at that time was that the appeal brief had been sent [to CAS].'
The law firm said that there was a problem because of 'secretarial cover in place and its office move,' the legal website
Law360 reported.
Mishcon claim they are not liable for damages, because Sunderland would have lost its appeal even if it had gone in on time.
In skeleton arguments advanced by Sunderland in court, today, the club said: 'Mishcon denies that the club lost any such chance as it denies that the club had a real and substantial chance in the appeal of reversing any of the findings in the FIFA DRC [Dispute Resolution Chamber].'
The case revolves around what turned out to be a disastrous signing of the Argentina international, Alvarez, on transfer deadline day in September 2014 for around £10M, when Sunderland were owned by Ellis Short.
In the previous season, Sunderland struggled to 14th in the top flight and finished five points above the relegation zone. Alvarez, then 26, had scored 14 goals in 90 appearances for the Serie A side and the hope was he would fire the Wearsiders up the Premier League table.
The creative midfielder was initially signed, under boss Gus Poyet, on loan until the end of the season, but the move would become permanent if Sunderland stayed up.
Alvarez had a muted debut in a 2-2 draw at home to Spurs and then injured his right knee in his second appearance, after coming on as 66th minute substitute in a 0-0 draw with Swansea on September 27, at the Stadium of Light. As a result, he only played 13 Premier League games that season.
However, the Black Cats stayed up – by three points - and Inter came calling for their money.
Sunderland claimed Inter had hesitated over a knee operation Alvarez needed, following the Swansea game, and said the Italian club were in breach of the agreement.
FIFA subsequently ruled in favour of Inter, but Sunderland appealed to CAS - and lost.
From the outset, Alvarez looked way short of Premier League standard at Sunderland and at the end of the season he was unwanted by both clubs and became a free agent, before eventually signing for Sampdoria, where his form failed to improve.
But the saga was far from over. The player subsequently brought a claim at FIFA against Sunderland for loss of earnings and he won his case. It is that ruling Mishcon allegedly failed to challenge at the Court of Arbitration for Sport.
What appears a peculiar feature of the case, given Mishcon was acting for Sunderland in filing an appeal, is that the law firm now claims it had no prospect of success.
'It is denied that the club lost any real or substantial opportunity to reverse the finding of the [world soccer governing body] FIFA [dispute resolution chamber] through the mechanism of its appeal or at all,' claimed the defence documents seen by
Law360.
'Had the club's appeal been proceeded with, CAS would nevertheless have ordered it to pay the player damages.'
Even that was not the end of it. Sunderland also brought a claim against club doctor Ishtiaq Rehman, who conducted Álvarez's medical. The parties reached a confidential settlement, last year.
The case has hit Sunderland hard. The pay out to Inter came in 2017, severely damaging the transfer kitty available to then manager David Moyes in an ill-fated season that saw the Black Cats relegated to the Championship.
The following season the club finished bottom of the second tier and dropped down into League One, where they remain, currently sitting fifth.
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