Ocado co-founders embroiled in legal battle over TDP-Waitrose deal

Ocado chief executive Tim Steiner and Marks & Spencer’s chair Archie Norman and chief executive Steve Rowe have all been named in court papers that unveil a bitter feud over online grocery shopping, according to The Times. 

The case is centred around Jonathan Faiman, co-founder of Ocado who exited in 2010 and went on to set up a new grocery delivery venture – Today Development Partners (TDP).

Following the announcement in February that Ocado had signed a deal with M&S to launch its online food service, TDP revealed in May it had struck a deal to be Ocado’s replacement at Waitrose. 

However, last week it was announced that the TDP Waitrose partnership had ceased with little explanation. 

Ocado is now suing TDP following allegations that documents that helped Faiman set up his new venture and in an attempt to win contracts with Waitrose and M&S were unlawfully obtained.

TDP has launched a counter-claim against Ocado said to be worth hundreds of millions of pounds, according to The Times, blaming it for the loss of the Waitrose contract.

Ocado has accused Faiman of recruiting senior Ocado employee Jon Hillary to provide TDP with confidential information claiming he then used this information to set up the agreement with Waitrose.

The online grocery business also alleges that Hillary provided Faiman and his lawyers with confidential information containing documents and drafts of the Ocado and M&S contract.

Hillary admits to breach of contract however TDP are arguing if the shared information would have helped its future plans and insists much of the information was already widely available in the public domain. 

It’s alleged that Faiman said there was a “market rumour” the Steiner was monitoring Waitrose’s calls forcing Norman and Rowe to obtain “burner” pay-as-you-go mobile phones to keep any sensitive information under wraps.  

As spokeswoman for M&S said: ”We refute this allegation and neither Steve Rowe or Archie Norman purchased or used any type of phone as is alleged in relation to this matter.”

Faiman has also accused Steiner of threatening HSBC with the withdrawal of both Ocado’s and his personal accounts from the bank unless it ceased working with TDP. HSBC said it ”did not respond well to bullying” and would continue its relationship with TDP, however Ocado denies these allegations.

Ocado said: ”We commenced legal proceedings for breach of confidence and unlawful means conspiracy. We are completely confident that we will win at trial. The defendants and other individuals were in possession of a substantial amount of Ocado confidential information, that they were using in their business.

”We have taken forceful steps to recover and protect our confidential information.

”Ocado’s board takes this matter extremely seriously. Ocado has a duty to its stakeholders - especially its clients, employees and shareholders - to protect its valuable commercial assets.”