A High Court judge has ordered a split trial in an £85m claim brought by 62 former franchisees against Vodafone over alleged mistreatment and governance failings, which the telecoms giant firmly denies.
The first trial will deal with liability, while the second will address any damages, avoiding what counsel for the claimants, David Lewis KC of Gatehouse Chambers, called an “extremely complex and unwieldy” single trial.
Both parties sought to split the proceedings, which was approved by Mr Justice Bryan. However, there are significant risks of increased costs and delays arising from any potential appeals from the claim, which was launched in December 2024.
The claim proceeded to a case management hearing following a failed mediation in May 2025.
Writing in 2025, franchising experts Rachel Bowley and Gordon Drakes of Fieldfisher said: “Should this proceed to trial, it will be a significant case within the franchising sector,” adding it would likely hinge on issues around duties of good faith and other legal obligations, both of which have featured in recent franchise case law.
The claimants contend that Vodafone breached its duty of good faith by implementing irrational, capricious and arbitrary decisions affecting the franchisees, leading to significant financial damage and enduring mental health issues. Some members of Parliament have compared the case to the Post Office scandal.
Andrew Kerr, a spokesperson for the claimants, said: “For years, Vodafone has failed to answer serious questions about what went wrong in its franchise programme. Now those questions will be tested in open court.
He added that while the claimants remained “open to a fair outcome”, they were “fully prepared to see this through the courts to secure justice”.
Vodafone has strongly rejected any comparisons to the Post Office scandal, stating it was inappropriate and not based on fact; any changes in commercial relationships, they have argued, were necessary and fully transparent, with decisions made commercially. The company insisted it had never misrepresented facts or concealed information – all allegations made against the Post Office in that litigation and subsequent public inquiry.
Vodafone added that it had not taken legal action to recover any sums owed by the claimants, unlike the private prosecutions brought by the Post Office against the now-vindicated sub-postmasters.
A spokesperson for Vodafone said: “We continue to run a successful franchise business in the UK with over 350 stores,” adding that many such partners had expanded their business with them.
“We reject the claims and will continue to robustly defend all aspects of this commercial dispute,” the spokesperson added. “We have engaged in efforts to resolve the matter with the claimants, including making a reasonable offer to settle. We have every confidence in our case and the court process, and in the absence of reaching a settlement, we remain firmly committed to resolving this dispute through the courts.”
The claimants are represented by Gatehouse Chambers’ Lewis, along with Emma Hynes, James Shaw and Alice Whyte, instructed by Bird & Bird partner Victoria Hobbs and Knights partners Russell Ford, Alicia West and their legal teams.
Vodafone has instructed Brick Court’s Jasbir Dhillon KC, Tom Wood and Danielle Carrington, instructed by TLT partner Ed Fiddick. TLT declined to comment. The proceedings are continuing, with a second case management conference set for later this year.
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