Freeths secures £3.35m win for THJ Systems in High Court damages case

THJ Systems Ltd, represented by law firm Freeths, has secured a landmark victory in a High Court damages inquiry, winning £3.35 million against former business partner Dan Sheridan. The case centred on Sheridan’s failure to adequately advertise THJ’s flagship software, OptionNET Explorer.

The two parties co-founded their business in 2010 to combine Sheridan’s options trading mentorship services with THJ’s software. However, their partnership collapsed in 2016, with THJ citing Sheridan’s failure to promote the software effectively. In 2022, the High Court confirmed Sheridan’s expulsion from the partnership was justified, ruling that his actions deprived THJ of a benefit it was entitled to expect under their LLP agreement.

This latest trial, which included detailed factual and expert evidence, quantified the impact of Sheridan’s failings. Subscriber growth stagnated after falling short of projections, leading the court to conclude that THJ lost potential profits of at least £3.35 million.

Martin Noble (pictured), Intellectual Property & Media Partner at Freeths, praised the decision: “This judgment builds on our earlier success at the Court of Appeal, where Sheridan was found to have misused copyrighted material from THJ’s software. The court recognised the significant adverse effect of Sheridan’s actions, and the award reflects the losses suffered by THJ.”

Andy Mitchell, owner of THJ, expressed relief at the outcome, stating: “This decision goes a long way toward holding Sheridan accountable for the damage caused to my business. OptionNET Explorer remains a market-leading platform, and we are committed to continuing its growth.”

Freeths also emphasised the importance of alternative dispute resolution, noting that Sheridan had opportunities to resolve the matter earlier but failed to act, leading to prolonged litigation and increased costs.