It should be remembered that certain companies of the Group have disputes in progress against which their respective Boards have set aside risk provisions for amounts considered appropriate, taking into account the opinion of their consultants and based on the degree of likelihood that significant liabilities will actually occur.
With a deed notified on October 23 2009, Fininvest S.p.A. appealed against ruling no. 11786 of October 3 2009 of the Milan Law Court which sentenced Fininvest S.p.A. to pay CIR patrimonial damages for the sum of € 749,955,611.93 plus interest at the legal interest rate on the above sum from the date of the ruling until payment is made. With this ruling, the Court also sentenced Fininvest to pay compensation for the non-patrimonial damage suffered by CIR, postponing settlement of this until a later verdict; lastly it sentenced Fininvest to reimburse CIR’s legal costs including € 981.80 of advances, € 6,394.86 of expenses, € 16,148.00 of taxes and € 2,000,000.00 of legal fees plus general expenses of 12.50% of the duties and fees plus IVA and CPA as per the terms of the law.
At the hearing of 22.12.2009 fixed by the Court of Appeal for the discussion of the appeal made by Fininvest for suspension of the executive efficacy of the above mentioned verdict, Fininvest gave CIR a bank guarantee at the first request for the sum of € 806 million. On receipt of this, CIR said that it would not have the first degree ruling executed until the Court of Appeal has published its verdict.
On 3.2.2010, CIR filed an appearance in the Court of Appeal, requesting the rejection of the impugnment proposed by Fininvest. It also proposed an incidental appeal against certain clauses of the first degree verdict and petitioned that Fininvest be sentenced to pay the compensation for patrimonial damage, quantified in the sum of € 342,259,187.26, plus revaluation and interest as from 24.1.1991.
During the proceedings the Court ordered an official technical opinion, which was filed on September 23 2010.
On November 23 2010 there was a hearing to give the conclusions and subsequently the parties filed their respective final defences.
On March 4