During the hearing it was contended that attempts were made to replace Switzer with the newly formed Feet of Flames company.
Flatley’s legal team countered that a deed of trust shows he has a controlling shareholding in Switzer, a company they maintain is only entitled to a management agent’s fee.
Under the terms of a five-year arrangement, it was to receive a monthly fee of £35k, rising to £40k after the first two years.
Flatley’s barrister said the firm had carried out an attack on Flatley’s character and ability to run a business which had nothing to do with the issues about the agreement.
He told the court his client had relied on his former financial adviser, with question marks raised over what the dancer understood to be signing up to.
Flatley was then informed following the agreement that the business was back in his full ownership, counsel stressed.
In court, questions were raised about Switzer’s financial status amid claims it had no listed employees or money until fresh accounts were filed last Saturday which now show net assets of just over £2m.
Based on concerns about its solvency, Flatley’s barrister questioned the company’s ability to pay damages if it were to lose the case.
Backing those submissions, Mr Justice Simpson said he could not be satisfied that any pledge by the company to pay compensation if it ultimately loses the action was meaningful.
“If the court grants an injunction until trial of the action the potential losses to the defendant, who owns the intellectual property to Lord of the Dance which generates significant revenue, are potentially unquantifiable,” the judge added.