Campaigners on behalf of overseas Halifax account holders who were denied free shares on conversion are celebrating a legal victory.

Texas-based RAF squadron leader David Gledhill and his wife asked the Halifax Building Society at the time of its conversion to a bank which address they should register for the share allocation. They were advised to register a forces' address in the US. The Halifax later decided, as theirs was not a UK address, they were not entitled to shares.

At the time of conversion the Halifax limited share allocation to its overseas members in only 26 countries. It said in certain countries it was legally prevented from giving away free shares, onerous regulatory procedures ruled it out, or there were just too few customers living there.

The Gledhills took their case to the small claims court. The judge ruled that the Halifax should have given them 200 shares each, the allocation they would have received if they had been resident in the UK. They were awarded £3,000 in compensation, equal to the value of the shares in 1997 plus interest.

Their legal victory rests on the fact that they were not given good advice by the Halifax about which address to register. "The judge's ruling was based on the individual merits of the case", says Halifax spokesman Ian Beggs. "It does not set a precedent."

But Brian Hazlehurst, director of the UNHAV campaign (UNited HAlifax Victims), thinks the wording on the original Transfer Document was misleading. "After conversion", he says, "Halifax alleged there had been clear information to advise members to give a UK address. UNHAV is planning to do battle on other fronts. UNHAV is preparing to launch several initial small claims," says Mr. Hazlehurst. "Eventually, we will finish the job by taking Multi-Party action. Gradually, we will wage a war of attrition until we wear away the Halifaxian 'granite'!"

A similar campaign is under way on behalf of overseas members of the Woolwich.

UNHAV's website is at www.rain.org/~jmhmps/unhav.html