GB - Butler- Creagh v AIDA Hersham

Mr Justice Eady :

Introduction

These cases were ordered to be heard together by Nicola Davies J on 14 April 2011, although the claim by Cherrilow Ltd against Mr Richard Butler-Creagh was begun almost a year after his claim against Ms Aida Hersham. Nevertheless, they have the factual background in common and there is considerable overlap in the issues to be resolved.

The claims arise out of the purchase of a large property on the river at Henley-on-Thames called Fawley Court, which is thought to have been designed by Sir Christopher Wren and is situated in gardens attributed to Capability Brown. The purchaser was Cherrilow Ltd (a company incorporated in Jersey, for the purpose of this transaction, on 3 December 2008). The contracts were exchanged on 10 December of that year and completion took place in April 2010. The vendors were the Marian Fathers, a religious group with charitable status which had owned the property since just after the Second World War. In accordance with obligations under the Charities Act, the trustees received outside professional advice throughout from Ms Alexa Beale, a solicitor, and from Mr Martin Conway, a property expert. He and his firm, Marriotts, had been appointed as independent surveyors pursuant to s.36(3). Both gave evidence at the trial.

Cherrilow Ltd was created as a special purpose vehicle for the acquisition of the property at the instigation of Ms Hersham a few weeks after she had first been shown round the property on 19 October 2008 by Mr Butler-Creagh, who claimed at that time to have the benefit of an exclusivity arrangement with the Marian Fathers whereby he would be recognised as the sole purchaser. He now claims a fee of £5m from Ms Hersham on the basis that he permitted her to “step into his shoes” and obtain the benefit of his contract with the Marian Fathers. That forms the subject-matter of the first claim. Mr Butler-Creagh brought no proceedings against Cherrilow and acknowledges that no contractual relationship exists between him and that company.

Cherrilow began its action earlier this year claiming damages for deceit, or fraudulent misrepresentation, against Mr Butler-Creagh and seeks a declaration that it is not liable to him in the sum of £5m or any other sum. Mr Butler-Creagh denies any dishonesty on his part and challenges causation. He also contends that Cherrilow has suffered no loss. He counterclaims on the basis of quantum meruit or unjust enrichment, alleging that he is owed fees in respe

Mr Justice Eady :

Introduction

Butler- Creagh v AIDA Hersham

Areas of Law