The long-running financial dispute between McCann-Erickson and its
former Elonex computer client was settled this week minutes before it
was due to be heard by a High Court judge.
Lawyers representing both sides hammered out an agreement on Tuesday
under which the agency agreed to drop its action in return for an
undisclosed cash settlement.
The legal settlement closes the latest chapter in what has been a
tempestuous relationship between the advertiser and the agency.
McCanns had been claiming more than pounds 100,000 for money it alleges
was owed to it during Elonex’s two-month spell as an agency client in
1993. Elonex had declined to pay the money, claiming that McCanns’ work
was not up to standard.
The High Court hearing had been due to last a week and witnesses set to
appear on McCanns’ behalf were to have included Malcolm Summerfield, its
former chief executive, and Winston Fletcher, chairman of the
According to the agency’s writ, Elonex agreed to become a client for a
six-month period at fees of pounds 12,000 a month.
But in November 1993, Elonex flouted the terms of the contract and
terminated the agreement in advance of the six-month period without any