1995
Irate Don hits Shell investors
Don and Shell are involved in a long-running legal dispute, due to come to court in February. Don has issued three high court writs and county court proceedings against Shell, alleging the wrongful use of retail promotions developed by Don Marketing. Shell has settled one of the three writs out of court.
Now Don has formed the Shell Corporate Conscience Pressure Group, put ads in the petrol trade press rallying support from others who have had dealings with the firm and written to institutional investors. Those who have received a letter include the pension fund manager of The Equitable Life Assurance Society, a heavy investor in Shell.
“This pressure group has been formed by more than a dozen individuals and companies owning shares in Shell because of our growing concern about the ethical conduct of Shell UK,” says Alfred Donovan, who founded the group in support of his son John – who runs Don Marketing.
Shell UK says Don initiated the legal proceedings and that it will wait for its day in court. “Shell UK is sorry Donovan has not felt confident enough to await the outcome of the legal proceedings which he initiated and which Shell is keen to conclude.”
Forte seeks global head of marketing Forte is looking for its first world-wide marketing director, after splitting its central sales and marketing function into two.
Forte has promoted Jackie Kernaghan, who has been acting sales and marketing director since November last year, to the new position of worldwide sales director. It has also created a second new position – worldwide marketing director. Both jobs are at managing director level, which puts them on a par with heads of Forte brands.
A Forte spokeswoman says: “We have changed the focus of our sales and marketing and are putting more weight behind each function.”
The centralised teams will concentrate on the group’s top 200 accounts, she says, and on other services such as the Forte card. Otherwise, “we will be continuing with separate marketing teams for the brands”.
Shell faces libel threat from Don
The two companies are due to meet in court over Don’s accusation that Shell used its ideas in a series of promotions without permission or payment.
Don has sent a letter to Shell from solicitors acting for Don claiming a press release the company issued two weeks ago was defamatory and untrue (MW March 24) and is demanding a retraction.
Among issues covered in the press release was Shell’s application to the court for security for its costs in the event of Don losing the case, to ensure Don will pay Shell’s legal expenses.
But Don also says Shell’s press release amounted to an “unfounded personal attack” on Alfred Donovan, the father of John Donovan the managing director of Don Marketing, who runs the Shell Corporate Conscience Pressure Group (SCCPG) even though “Shell is aware that Mr Donovan is a 78-year-old ex-regular army, war-disabled pensioner”.
A spokesman for Shell says the company has no plans to retract the press statement.
Shell faces libel action as Don’s founder issues writ
This latest twist in the long-running legal wrangle between Don Marketing and Shell comes as the two companies prepare to meet in court over Don’s accusation that Shell used the agency’s ideas in a series of promotions without permission or payment (MW February 24 and March 31).
Among issues covered in the press release at the heart of this latest dispute was Shell’s application to the court for Don Marketing to provide £62,000 security for its costs in the event of Don losing the case. This was to ensure Don will pay Shell’s legal expenses.
The court ruled that Don should provide £10,000 as security to the end of the part of the legal process known as the “discovery stage”.
But Don also says that Shell’s press release amounted to an “unfounded personal attack” on Alfred Donovan, the father of John Donovan who is managing director of Don Marketing.
Shell says it stands by its press release, while Don pro-mises to stage a demonstration at Shell’s AGM next month/
Don takes its payment fight to Shell’s agm
BYLN:
Sales promotion agency Don Marketing has carried out its long-standing threat to picket Shell’s annual general meeting (MW January 20), while at the same time also having direct talks with Shell. The two companies are to meet in court on June 24 over Don’s accusation that Shell used its ideas in a series of promotions without permission or payment. Representatives from Don handed out leaflets to staff and shareholders at Shell’s agm, headed “A Shell Game: a game of deception”, which suggested questions delegates should raise at the meeting. During the agm, Alfred Donovan – father of Don Marketing managing director John Donovan – requested a meeting with John Jennings, chairman of Shell transport and trading. Donovan senior runs the Shell Corporate Conscience Pressure Group, set up to canvass support among Shell retailers.
The meeting between Donovan and Jennings took place after the agm, though Shell says this does not indicate any change in its position and emphasises that legal action is continuing.
Shell also claims that Donovan asked the company if it would adopt “binding arbitration” schemes to allow disputes to be settled without recourse to legal action. No one at Don Marketing would comment on the latest moves
No Title
BYLN:
John Donovan, of sales promotion agency Don Marketing, says he will have a team picketing Shell’s London headquarters for four days a week distributing a leaflet detailing his company’s grievances against the oil giant (MW May 26).
SBHD:
BYLN:
1998
Shell is being sued…
By Tom O’Sullivan
The legal row could further delay the national roll-out of the scheme. It has been tested in Scotland for the past 12 months and was to have been introduced nationally at the end of last year. However, it was delayed because the ten partners in the scheme, including Dixons, the RAC and Commercial Union, could not agree on a launch date.
The High Court writ was issued last Thursday by the promotional agency Don Marketing. It alleges that the agency first offered the idea for a “multibrand” loyalty scheme to the oil company at a confidential meeting between the agency and Shell on October 23 1989. The idea was further discussed in a letter dated July 24 1990 but at that stage Shell said that it did not want to pursue the Don Marketing concept.
The writ also reveals that Don Marketing had approached both Sainsbury’s and Tesco, among other potential partners, to join a multibrand scheme with Shell in early 1990. Sainsbury’s was an initial member of the Shell Smart Card consortium in 1996 but is not part of the Scottish trial. The writ says Don Marketing developed the scheme on the basis of attracting market leaders from different sectors as partners.
Don Marketing managing director John Donovan has been in talks with Shell for the past 12 months. “It was not obviously our scheme until Shell launched its trial in Scotland,” says Donovan, “that is when we realised it was our scheme.”
Shell denies the legal action will affect the national roll-out. “The claim has been most comprehensively investigated and discussed in correspondence with Mr Donovan,” says a Shell spokeswoman. “Shell is satisfied that it is completely without substance. We now intend to defend vigorously Mr Donovan’s claims in court.”
Don Marketing is claiming multimillion pound damages. Its writ demands an injunction to prevent Shell using the scheme, an admission that the agency’s confidential information was “misused” and that all promotional material credits Don Marketing with originating the scheme.
This legal case is the latest in a series of spats between Shell and Don Marketing. All have been settled out of court with the settlements remaining confidential.
ASA dragged into Shell UK Smart battle
The Advertising Standards Authority has been dragged into the legal fight between Shell UK and the sales promotion agency Don Marketing.
The agency issued a High Court writ against Shell at Easter alleging a copyright infringement over ownership of the Smart card concept.
But now it is alleging that in 1995 Shell deliberately misled the ASA, which was investigating complaints about its Make Money promotion. As part of it, envelopes were given away with petrol purchases, containing two pieces of paper which had to match to qualify for a prize. Players complained that the envelopes were not secure.
The allegation about Shell misleading the ASA is made on a specially created Website, which discusses Don Marketing’s relationship with Shell over the past ten years.
Don Marketing managing director John Donovan claims Shell lawyers asked his company to withhold additional information which it wanted to pass to the ASA as part of a complaint it had also made.
At the time of the ASA investigation, in July and August 1995, Don Marketing was negotiating to resolve an outstanding legal claim with Shell over ownership of the Make Money promotion idea.
“Shell torpedoed that (ASA) investigation and stopped important information going to the ASA,” says Donovan. “We had further information that would’ve changed what the ASA said in its report.”
The ASA dismissed the complaint. ASA spokesman Bill Lennon. says: “I cannot see it is in anybody’s interest to reopen the claim.”
Shell adds: “Shell did not mislead the ASA. It had all the information it needed to make its decision.”
Shell: Don is more than ‘disgruntled’
I am writing in response to Alan Mitchell’s article about the key to loyalty card survival (MW May 14). He mentioned Shell’s aspiration to reach 8 million members within a year “legal battles with disgruntled sales promotion agencies permitting” – a reference to our High Court action against Shell. “Disgruntled” is not the description I would choose. Frankly, I am absolutely pissed off with Shell UK. Let me explain why.
The multimillion pound claim in respect of the Smart consortium concept operated by Shell in the UK and in several other countries is not our first High Court action against Shell UK. It is the fourth. All involve breach of confidence and/or breach of contract. All involve the same Shell UK national promotions manager. It has been going on for five drawn out years.
I also want to set the record straight regarding a statement issued by Shell UK on or around April 21 1998 in which it gave the impression that I am a vexatious litigant, who issues High Court actions in respect of bogus claims.
In fact, Shell has already settled the first three actions in our favour. I even received an unsolicited letter of apology from Dr Fay, the chairman of Shell UK, admitting that its dealings with us did not meet “the high standards we set ourselves and which our long relationship had led you to expect of us”. I have now issued libel proceedings against Shell UK for defamation in regard to its press statement.
As Shell is well aware, we were not the only sales promotion agency which complained to Shell UK about the business practices of the relevant manager. Even its retained promotions agency eventually refused to disclose confidential information in his presence. We are, however, the only agency which has been brave enough (or foolish enough) to take on one of the world’s leading multinational Goliaths.
I do not recommend anyone else to follow our path. Litigation on such a scale has a destructive effect on business and family. Shell UK and its lawyers have bombarded my company and my family with threats over the years (verbally and in writing). Some have come from the highest levels of Shell UK management. However, we will see it through to the end, as we are determined that right will prevail over might.
It is only fair to mention for the record, that in the interests of justice, Sir John Jennings, the chairman of Shell Transport & Trading Company up to June 1997, personally interceded in our legal battles with Shell UK. I had several brief meetings with him. He upheld Shell’s Statement of General Business Principles requiring honesty, integrity and openness in all of Shell’s dealings.
Mitchell mentioned Shell’s desire to expand the number of partners in Smart. With the objective of avoiding publicity that could have damaged Shell’s plans to expand the scheme, it was agreed over a year ago that Shell would, in effect, take the Smart claim up to the “discovery” stage, without any legal proceedings being commenced.
As litigation is now underway, that arrangement has ended. I am therefore sending legal notifications to existing Smart partners reserving rights to take legal action if they continue to participate in the scheme that Shell is conducting without our consent.
We will also be notifying potential partners.
John Donovan
Don Marketing
Bury St Edmunds
Suffolk
Shell faces new threat to Smart card scheme
Managing director John Donovan intends to send a “letter before action” to a sample station – Tim Brinton Cars in Bury St Edmunds – then roll out the mailing to the entire network at a later date.
The proposed “letter before action” warns that Don Marketing has the legal right to seek damages against any company participating in the Shell Smart scheme without consent from John Donovan.
Shell’s solicitor DJ Freeman has written to Donovan’s solicitors Royds Treadwell warning that “the sending of such notices amounts to an inducement to breach their contractual commitments to our clients, and as such, are unlawful”.
But Donovan is adamant that the letter will be sent even though the full mailing to all service stations will cost thousands of pounds.
“It is our firm intention to send it and if stations continue to operate the Smart scheme we will issue further proceedings to stop them,” he says.
Don Marketing has issued two writs alleging Shell UK breached copyright on the concept idea used to create the Smart card loyalty programme and for alleged defamation of Donovan in a press statement (MW April 16 and 23).
Shell has been warned by its solicitors not to speak to the press following Donovan’s defamation action.
The company issued a state ment saying: “The proper forum for resolving these matters is in court and proceedings are moving forward to enable them to be resol-ved there.
Don Marketing posts warning about Shell
Don Marketing, the sales promotion agency alleging Shell breached copyright on the idea it used to create the Shell Smart card scheme, has placed an advertisement in this week’s Marketing Week warning businesses they may face legal action if they join the scheme.
Under the headline “Shell Smart Legal Notice”, the ad sets out the details of the court case and warns potential partners that participation in the scheme “may involve an infringement of rights, rendering it liable to legal action”.
Don Marketing managing director John Donovan has been forced by Shell’s legal department to revise a letter he planned to send to Shell’s 1,700 service stations (MW May 21).
The revised “letter before action” will be sent to all Gulf stations which have not been rebranded as Shell and are not yet contracted into the Smart scheme with Shell.
Donovan says: “There is a problem with interfering with existing contracts, but we are setting our approach out in the letter.”
The letter will also be sent to Shell service stations to warn managers they will be liable to legal proceedings when the Smart card scheme ends, and also to dealers to warn they will be liable if they switch to another franchise brand.
Shell UK is adamant it will win the case when it reaches the High Court. Mike Harle, retail development manager for UK and Ireland, says: “We think the case is clear that the Shell Smart card scheme out there is not John Donovan’s, but ours. We believe we can prove this in court.”
Shell UK will keep its station owners informed of the legal proceedings.
1999
Judge Shell by actions not words
I read with interest your editorial about the ethical dilemmas facing multinationals and the reference in particular to Shell’s recent public relations disasters. You say that “Shell has apparently learned its lesson”. I beg to differ.
My claim against Shell UK in respect of the Smart loyalty scheme is set down for a three week High Court trial in June.
I invite Marketing Week to attend the trial. You will then be able to make an informed assessment of Shell’s ethical conduct after sensational evidence is put into the public domain.
Don Marketing, the agency I founded, has successfully sued Shell three times in recent years for allegedly stealing business ideas that we put to the company in the strictest confidence. Shell settled out of court each time.
During the current litigation, Shell has employed undercover investigators who have used outright deception in the course of their activities. I have a letter from Shell’s legal director, Richard Wiseman, admitting Shell’s association with the covert activities (copy available on request).
I would respectfully recommend that you wait for the emergence of evidence in the coming trial before making further comments about Shell’s reformed ethical conduct. We must judge Shell by its deeds, not by its words.
John Donovan
Founder of Don Marketing UK Bury St Edmunds
Suffolk
Don ends legal proceedings against Shell UK
John Donovan, owner of Don Marketing, yesterday dropped his High Court action against the company over allegations that Shell stole his ideas for the Shell Small Card, a multibrand loyalty card.
Donovan first sued Shell in 1993 over allegations that the oil company and forecourt retailer stole his ideas for a number of sales promotions. Three of the claims were settled out of court.
The final claims were laid to rest this week. The two parties issued a joint statement yesterday, saying: “John Donovan has abandoned his claim against Shell in relation to Shell’s Smart loyalty scheme. He has acknowledged that these claims are without foundation and should not have been brought.
“Mr Donovan has also withdrawn all allegations of impropriety made against Shell or against its employees in connection with these proceedings and has agreed not to repeat them in any manner whatsoever.
“For its part, Shell acknowledges that Mr Donovan’s proceedings were brought in good faith and also withdraws all allegations of impropriety made during the proceedings.”
Neither party would make any further comment.
*This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, and shellwikipedia.com, are owned by John Donovan - more information here. There is also a Wikipedia segment, the Shell DPA Files, "Shell and the Spies", the Shell Leaks files, as well as books written and published by John Donovan - Kindle eBooks. Timeline of the Donovan Shell Feud. Toxic History of Royal Dutch Shell Group. Shell and the Donovans: The Full Media Record — 550+ Articles, 110 Books, 40 Years. *All created and supported by internet wizz, Nick Gill.
