Catherine Newman QC of Maitland Chambers has won a High Court victory on behalf of JD Wetherspoon (JDW).
Catherine Newman
The pub chain accused its former property advisor Van de Berg (VdB), and VdB’s managing director Christian Braun, of fraud during the 16 years it worked with the company. During that time JDW paid the property advisor £14m for its services.
It was claimed that VdB had on several occasions dating back to the early 1990s diverted freehold property deals to third parties instead of bringing them direct to JDW, as their contract stipulated.
JDW claimed in court that VdB introduced third parties to the freehold and then tied JDW into a lease at a rent that increased the value of the freehold. VdB was also paid a separate fee by the third-party buyers.
When JDW chairman and founder Tim Martin first became suspicious of the arrangement in 1998 he was reassured by Braun that everything was in order. Further suspicions were aroused in 2005, at which point JDW broke off the contract with VdB and launched fraud proceedings a year later.
Sitting in the Chancery Division of the High Court, Mr Justice Smith found that Braun and co-directors Richard Harvey and George Aldridge acted dishonestly in their dealings with JDW and held VdB liable.
JDW general counsel Caroline Wilkinson and Pinsent Masons senior associate James McBurney instructed Newman.
Turbervilles partner John Clement instructed Lamb Chambers Paul Emerson for VdB and Braun. Mundays instructed Serle Court’s Clare Hoffmann for Harvey.
This is good case that indicates limitation period is irrelevant in fraud cases,particularly where there is concealment .
Good work from JDW general counsel and Pinsent Masons