JDW wins right to sue Van De Berg

By The PMA Team

- Last updated on GMT

Related tags Jdw Breach of contract Contract law

Managed chain JD Wetherspoon (JDW) has won the right to bring a High Court damages claim against its former property agent who, it claims, made...

Managed chain JD Wetherspoon (JDW) has won the right to bring a High Court damages claim against its former property agent who, it claims, made "secret profits" at its expense when locating ideal new pub properties.

JDW is suing Van De Berg and three of its directors, Christian Braun, Richard Harvey and George Aldridge, accusing them of breach of contract, negligence, breach of duty and deceit in respect of a number of transactions completed before 1998.

Now top judge Mr Justice Lewison has dismissed moves by Van De Berg, Braun and Harvey to have the case against them thrown out without the need for a full trial. The pub giants' claims against them will now proceed to a full hearing, along with its claim against Aldridge, who made no attempt to bring related proceedings against him to an early end.

The judge said that it is alleged that, after they were retained as property advisers and finders, Van De Berg and its directors "made secret profits behind JDW's back".

He said: "The nub of the complaint is that JDW's trusted agents acted behind its back in that, rather than arranging for JDW to acquire a freehold or long lease at a favourable price, they instead arranged for the interest to be acquired by a business associate or another client, and got JDW to take a rack-rented lease instead.

"They did this, at least in part, by concealing the true state of affairs from JDW and in some cases by telling lies to third parties in that they falsely represented that they were making offers on behalf of JDW, when in fact they were not.

"Although JDW cannot at this stage point to a smoking gun, they strongly suspect that the defendants have profited from the deals, at least by receiving commissions, if not greater rewards."

Ruling that these allegations should proceed to a full trial, he said that the facts alleged, if true, "are capable of amounting to a breach of duties".

He said defences raised that JDW's claim is barred by the 1980 Limitation Act were "not so clear as to warrant summary dismissal of the claim".

Related topics JD Wetherspoon

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