Britain’s big four mobile phone operators have dealt a crushing legal blow to attempts by 3, the Hutchison Whampoa-backed rival, to land them with a £250 million competition claim.

A High Court judge has thrown out an application by 3 to force Vodafone, O2, Orange and T-Mobile to hand over potentially hundreds of thousands of documents stretching back over four years.

3 requested the documents to help with its claim that its four rivals conspired to shut it out of the UK market. It now faces a legal bill of up to £1 million from a two-day court hearing as it must bear all the operators’ legal fees.

The dismissal of 3's claim for pre-application disclosure of evidence has ramifications for all kinds of civil claims in the English courts.

Britain's newest mobile operator tried to force its four main competitors to hand over documents before issuing any legal claim. Had 3 won, businesses faced the prospect of any potential litigants slapping demands for disclosure of documents simply on the back of a threat that a person or company intended to sue in supposedly complex cases.

Dismissing 3's claim, Mr Justice David Steel said the “scale of the disclosure sought is very large and unfocused”.

Lawyers for the other four mobile operators accused 3 in court of embarking on a "fishing exercise" for what they saw as a "highly speculative" claim.

Kevin Russell, chief executive of 3 had accused Vodafone, T-Mobile, Orange and O2 of colluding to withhold details needed for potential 3 customers to move their phone numbers from existing operators. The four were also accused of abusing their dominant market position in what could still become the largest competition case of its kind if 3 issues a private competition law enforcement action.

3 has yet to decide whether to press ahead and issue a claim. Mr Russell's witness statement read out in court stated: "As CEO of the company, I am able to speak to the fact that 3 does not have a settled intention to issue proceedings regardless of the outcome of these applications."

Vodafone, advised by Herbert Smith and barristers Joe Smouha, QC, and Javan Herberg have claimed £380,000 in costs. T-Mobile was charged £260,000 by its solicitors Bristows and barristers Charles Hollander, QC, and Meredith Pickford.

Mr Justice Steel ordered 3 to pay an interim payment of £140,000 to each of Vodafone and T-Mobile with the balance of the bills for both companies subject to court assessment.

Orange took advice from Field Fisher Waterhouse and barristers James Flynn, QC, and Marie Demetriou. O2 was advised by Ashurst and barristers Nicholas Green, QC, and Kelyn Bacon. Both Orange's costs of £166,000 and O2's bill of £155,000 were ordered to be paid in full by 3.

3's own legal bill, for advice from solicitors Barlow Lyde & Gilbert and barristers Jonathan Sumption, QC, and Brian Kennelly, is thought to be around £350,000.

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