While this legal action was playing out, the Arena Company returned its temporary franchise to the NHL, but refused to return Livingstone's players to him for the 1918–19 season. Instead, it formed a new team, the Toronto Arena Hockey Club—popularly known as the Toronto Arenas, with Gardens auditor Hubert Vearncombe as team president. This new team was a self-contained corporation that could exist separately from any legal action, and was thus beyond the reach of Livingstone. The newly-minted Arenas were readily admitted to the NHL as a full member in good standing, and continued to use Livingstone's players. This resulted in another lawsuit being filed, this one against Arena Gardens, Vearncombe and Arena Hockey Club general manager Charlie Querrie. Arena Gardens argued that Livingstone did not own the NHL rights to the players and could not have suffered any damages. The court ruled in Livingstone's favour in January 1920 and awarded $20,000 in damages back-dated to April 1918, but the issue was not settled. Before the end of the year, under the weight of the judgment against it, Arena Gardens went into receivership. Meanwhile, the Arena Hockey Club was sold to a group headed by Querrie, who renamed it the Toronto St. Patricks.