ONE ESSEX COURT TEAMS TRIUMPH IN CLARIDGE’S OWNERSHIP DISPUTE: MCKILLEN V MISLAND
Mr Justice David Richards handed down judgment on 10 August 2012 in McKillen v Misland (Cyprus) Investments Ltd. The dispute pitted Mr McKillen against Sir Frederick and Sir David Barclay and their interests in a case concerning the ownership of Claridge’s and The Connaught and Berkeley hotels. Mr McKillen alleged that his rights as a 36% shareholder of the hotels’ holding company, Coroin, had been unfairly prejudiced and sought relief in a section 994 petition that he be entitled to buy out the Barclay interests and the other shareholder, Mr Derek Quinlan. There was a parallel claim against many of the same parties, with the addition of Sir Frederick and Sir David Barclay personally, alleging an unlawful means conspiracy.
The proceedings were launched by Mr McKillen in October 2011 and the expedited trial was heard over 30 days between March and late May. Two preliminary issues had already been determined in favour of the Barclay interests by the time judgment was handed down (with Jeffrey Onions Q.C. acting for the Barclay interests): [2012] EWCA Civ 179 and [2012] EWCA Civ 864.
The Judge dismissed both the petition and the conspiracy claim. The Barclay interests had not breached the shareholders’ agreement and the technical breach of fiduciary duty by two directors appointed by the Barclay interests made no difference and caused no loss. All allegations of wrongdoing against the Barclay brothers were dismissed.
Ken MacLean Q.C., leading Sa’ad Hossain, Edmund Nourse and Emma Jones acted for the Barclay interests’ companies. Lord Grabiner Q.C. and Edmund Nourse acted for the Barclay brothers personally. Both teams were instructed by Weil Gotshal and Manges.
Stephen Auld Q.C, leading Michael Fealy and Michael D’Arcy acted for Mr Quinlan, instructed by Quinn Emanuel.