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Monday 26th January 2004

On Friday last week, the High Court handed down judgment in a case relating to the intended sale and development of Craven Cottage, the football ground of Fulham Football Club. The Claimants, Crown Dilmun, were represented by SJ Berwin.

The First Defendant in the action was a former managing director of Crown Dilmun, Nick Sutton (who was recently voted "Young Property Person of the Year" in 2002 by Property Week magazine). The Second Defendant was a special purpose company formed by him called Fulham River Projects Limited ("FRPL"). The Court found that Sutton, whilst he was still managing director of Crown Dilmun, had managed to obtain an opportunity to buy Craven Cottage from Harrods for a purchase price of £50 million. Sutton concealed this deal from Crown Dilmun and having incorporated FRPL, structured the deal so that FRPL (and not Crown Dilmun) became the purchaser. Sutton and FRPL intended to earn enormous profits by building a multi-million pound residential development on the site owned by the club.

The trial of this action took place in November and December of 2003 and lasted three weeks before Mr Justice Peter Smith. At trial, Charles Hollander QC argued the case on behalf of Crown Dilmun. Sutton and FRPL were represented by Robin Knowles QC and Andrew Hochhauser QC respectively.

In its judgment on 23 January 2004, the Court found in favour of Crown Dilmun against both Defendants and held that they were liable to account to Crown Dilmun for profits they make from the Craven Cottage deal. In his judgment, Mr Justice Peter Smith found that Sutton had been dishonest and that his conduct (in diverting the opportunity away from Crown Dilmun) was in law, to be treated as the conduct of FRPL.

The case was headed by SJ Berwin litigation partner Alex Leitch with support from assistants Nicola Bridge and Michelle Kelly. Speaking of the case, Alex Leitch said that he was delighted with the outcome following a hard fought and bitterly contested trial.

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