Huge costs for Johal Dairies as appeal bid fails

A Sikh-owned dairy faces legal costs thought to run into hundreds of thousands of pounds after losing an attempt in the Court of Appeal to overthrow a High Court conviction in the so-called Black Country “milk wars” case.

A High Court judge heard last year how Johal Dairies of Wigston, Wolverhampton, paid a milkman sacked by a rival firm in the Midlands city – JN Dairies – to steal confidential documents from JND for use in poaching their customers.

Judge David Cooke heard that Johal paid illegal immigrant Gurbir Singh £40,000 to steal wallets full of delivery invoices from JND – taken on November 10, 2008, two days after he was sacked because he could not prove his legal status in the UK.

He sneaked into the firm’s Millfields Road distribution centre in the early hours and removed invoices which detailed customers’ addresses, volumes sold and prices charged by the dairy. The files were passed to Johal director Surbjit Johal and JND customers later testified they had been offered cheap or free milk by Johal Dairies.

Surbjit Johal and fellow director Gurnek Johal claimed the witnesses were lying, but the judge did not accept their evidence. Johal Dairies were found to have breached confidentiality laws.

Judge Cooke concluded the theft of the invoices was a pre-arranged plan, called Johal’s denials implausible and found against the company and Gurbir Singh, who had travelled back to India – fare paid by Johal – and took no part in the case.

The story of the “undercover spy” and the milk wars in the Black Country and Birmingham was revealed at the Birmingham Civil Justice Centre in an eight-day trial in March last year, with judgement reserved until June. Judge Cooke ordered the company to pay JN Dairies’ legal costs, starting with a payment of £200,000 prior to further decisions on costs and compensation.

Johal Dairies claimed in their appeal against conviction that the judge did not give enough weight to their evidence.

But three Appeal Court judges rejected the appeal and a request for a retrial. The judge’s reasoning had been “long and careful” and objective they said.

JN Dairies’ directors said they were delighted that justice had prevailed again. “Johal Dairies did not compete fairly and resorted to unlawful activity in an attempt to sabotage our hard-earned business.”

Surbjit Johal told the Birmingham Mail his firm were disappointed they had not been granted a retrial but would put the case behind them and concentrate on growing their business.