Aldi and GCA clash over £3.7m supplier delisting case in court fued

Lawyers for Aldi and the Groceries Code Adjudicator (GCA) are battling over whether the government body should be able to get involved in a landmark High Court hearing concerning a supplier’s delisting.

Legal teams for both bodies fought it out in London yesterday, with the GCA insisting it should be permitted to give evidence in court, The Grocer reported. 

The case concerns farmers Matthew Rawson and John Clappison, whose company ran the last sprout and brassica farm in Yorkshire.

The farmers are suing Aldi for £3.7m in losses, arguing that W Clappison Ltd (WCL) was delisted without due notice and in direct contravention of the Groceries Supply Code of Practice (GSCOP).

Aldi faced an “unprecedented” intervention by the regulator in December, after being accused of effectively forcing the business to shut,  The Grocer revealed.

A judge at the hearing deferred the decision over whether the GCA evidence would be permitted. A final ruling is forecast within the next few weeks.

The German discounter insists the GCA’s evidence will add unnecessary costs and complexity to the trial, and raised concerns it could be a “partisan” move.

Speaking on behalf of the government body, James McClelland KC denied the supermarket’s claims.

He said: “Clearly the GCA has a very keen interest in the outcome of this case.

“We are alert to the wider implications but we believe it makes sense for the High Court to be assisted by the participation of the GCA.

“We do not have a partisan interest in this case, but we do want to see any judgment in this case being properly applied.”

WCL was one of Aldi’s suppliers for over 20 years before the business ended its supply agreement last February. Crop for Aldi had already been sown, which WCA said resulted in the collapse of the company.

WCL is suing Aldi for £3.7m in losses, alleging it did not comply with its obligation to give “reasonable notice”.

A GCA spokesman said: “As the case is live, the GCA has no comment at this time.”

Aldi joins Asda in being embroiled in a legal battle, with the rival grocer’s workers “on the cusp of justice” following a landmark equal pay ruling.

Tens of thousands of Asda workers, mostly women, are on the brink of receiving historic payouts following a landmark ruling in the supermarket’s ongoing equal pay case.

Last month, Morrisons workers also made a major step forward in their equal pay case, following a judgment handed by the Employment Tribunal.

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