Mishcon de Reya has defeated a £6m negligence claim from businessman Robin Pesskin that has been dogging it for more than two years.
Pesskin was the man who originally conceived the idea of developing shopping malls in NHS hospitals.
He sued Mishcons for negligence over a contract it drafted for him when he attracted private equity investment into his company.
The contract contained a ‘flood the board’ clause that allowed the private equity company Innisfree to oust Pesskin as a director, which it did in 1998.
In his judgment, Mr Justice Etherton found that Mischons did not inform Pesskin of the meaning and consequences of the clause in writing.
However, he accepted the firm’s evidence that Pesskin preferred oral briefings to receiving letters.
Following a BDO Stoy Hayward report into losses made by the company, the judge said: “The real or effective cause of the loss suffered by Mr Pesskin was the events and circumstances reported by BDO, and Mr Pesskin’s participation in them, or responsibility for them.”
Barlow Lyde & Gilbert partner Richard Harrison and Four New Square’s head of chambers Justin Fenwick QC won the case for Mishcons.
Marshall Ross & Prevezer advised Pesskin, and instructed Jonathan Har-vie QC from Blackstone Chambers.
Addleshaw Goddard has spun off its bulk housing arm Enact through a management buyout. As reported by The Lawyer (16 June), the firm planned to spin off Enact because it did not fit its strategic direction. Addleshaws is taking a small, undisclosed equity stake in the business and will retain a place on the board.