London: A judge on Thursday cleared the way for former Liverpool owner Tom Hicks to pursue a damages claim in Britain over the sale of the club, but blocked an attempt to seek compensation in the United States.
High Court judge Mr Justice Floyd dismissed a request by the American to lift anti-suit orders which prevent him from taking court action in Texas to halt the deal in which he claims that he lost 140 million pounds (226 million dollars, 167 million euros).
The judge ruled that Hicks can only take action in Britain.
Hicks believes he was the victim of an "epic swindle" when the club was sold against his wishes to New England Sports Ventures (NESV) for 300 million pounds in October after a boardroom tussle at the five-time European champions.
The judge also dismissed attempts by Hick's lawyers to block claims by Martin Broughton, the former chairman of the club, who is seeking damages against Hicks for his actions while owner.
An application by NESV to be allowed to join the Broughton action was also granted.
NESV, the owners of the Boston Red Sox baseball team, bought Liverpool after repaying a 237 million pound loan that Hicks and his former partner George Gillett took out with the Royal Bank of Scotland and Wells Fargo and Co.
Hicks and Gillett were deeply unpopular among Liverpool supporters, who accused them of saddling the club with crippling debt.
The club expressed satisfaction with the court's decision and said it would fight any legal action taken by Hicks to seek damages.
"We are delighted that Mr Justice Floyd has granted the applications requested by Sir Martin Broughton, RBS and NESV and that the anti-suit injunction prohibiting the former owners from commencing legal actions against these parties outside the EU has been upheld and clarified," a statement said.
"Sir Martin, RBS and NESV continue to maintain that there is no basis to challenge the propriety or validity of any actions by them or any of those involved on their behalf in the sale of the club.
"They will continue to take all steps necessary to defend vigorously any litigation threatened or commenced by the club's former owners."