Johal Dairies has failed to get a claim for damages brought against it by JN Dairies thrown out of the High Court.

The latest court showdown between the two middle-ground suppliers follows a Court of Appeal hearing in March in which Johal was unsuccessful in getting the court to overturn a previous High Court judgment against it.

At the initial trial in Birmingham last year, the court found that Johal had paid illegal immigrant Gurbir Singh £40,000 to steal confidential customer invoices from JN Dairies that contained volumes, addresses and prices for all its customers. JN claimed Johal's actions had lost it a proportion of its market in Staffordshire.

Johal claimed, during JN's action for damages, that the basis on which JN was claiming them was not valid at law. The final damages hearing is expected to take place by early next year. JN is seeking to recover up to £1.1m.