You are on page 1of 101

Neutral Citation Number: [2010] EWHC 1159 (QB)

Case No: TQ!09!0"19


IN THE HIGH COURT OF JUSTICE
QUEEN'S BENCH DIVISION
#o$al Courts o% &usti'e
(tran)* on)on* WC2+ 2
,ate: 2- .a$ 2010
Before:
MR JUSTICE KEITH
/ / / / / / / / / / / / / / / / / / / / /
Between:
(1 SIR GEOFFRE! HURST
(" D#VID B#RK$E!
(% D#RREN INNOCENT
(& TERENCE HO'$E!
(( '#U$ KEN!ON
() M#RTIN ROBERTS
(* VERN# ROBERTS C+,-.,nt/
,n0
(1 MICH#E$ HONE
(" M#RK CORDNER
(% RO!#$ M#RBE$$# GROU' OF COM'#NIES
S$
(& 1I$CHESTER HO$DINGS INC
(( GROSVENOR SQU#RE INVESTMENTS INC
() #2U$ 'RO'ERTIES S$
(* S#NDR# CORDNER
Defen0,nt/
/ / / / / / / / / / / / / / / / / / / / /
/ / / / / / / / / / / / / / / / / / / / /
Mr 'eter Kno3 QC ,n0 Mr Ro4ert Str,n5 (instru'te) b$ DMH St,++,r06 /o+-7-tor/) %or t0e
C+,-.,nt/
Mr M-78,e+ Jeffer-/ ,n0 M/ #nne F,-r9o (instru'te) b$ J:05e S;<e/ Fr-3o:6 /o+-7-tor/) %or
t0e Se7on0 ,n0 Se=ent8 Defen0,nt/
Hearin1 )ates: 1- an) 19* 22/22 3ebruar$* 1/5* "/12 an) 12 .ar'0 2010
/ / / / / / / / / / / / / / / / / / / / /
#99ro=e0 J:05.ent
4 )ire't t0at 5ursuant to C6# 6, 79+ 5ara 281 no o%%i'ial s0ort0an) note s0all be ta9en o% t0is
:u)1ment an) t0at 'o5ies o% t0is ;ersion as 0an)e) )o<n ma$ be treate) as aut0enti'8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
Mr J:/t-7e Ke-t8:
INDE>
To5i' 6ara1ra50
#8 4ntro)u'tion 1
B8 T0e ba'91roun) %a'ts "
.i'0ael Hone 9
.ar9 Cor)ner 1>
T0e re'ruitment o% .r Cor)ner 12
T0e s5e'ial )eal 2>
T0e mar9etin1 o% #.=?s )e;elo5ments 71
T0e lan) 72
+@ul?s sale o% t0e lan) 7>
T0e reAuirements o% (5anis0 la< >0
C8 T0e 'laimants? a''ounts >>
(ir =eo%%?s 5romotional a1reement >5
(ir =eo%%?s 5ur'0ase <it0 .r Ho5le$ o% no8 90 +lo0a #o$al 52
(ir =eo%%?s 5ur'0ase <it0 .r 6o<er o% no8 20 +lo0a #o$al 22
T0e loan o% B750*000 25
(ir =eo%%?s a'Auisition o% no8 20 +lo0a #o$al -9
.r 4nno'ent?s 5ur'0ase o% no8 22 +lo0a #o$al "1
.r an) .rs #oberts? 5ur'0ase o% no8 2" +lo0a #o$al ""
.r Bar9le$?s 5ur'0ase <it0 .r Cor)ner o% no8 52 +lo0a #o$al 92
.r Cen$on?s 5ur'0ase o% no8 2> +lo0a #o$al 111
(ubseAuent e;ents 119
D8 .r Cor)ner?s a''ount 12-
(ir =eo%%?s 5romotional a1reement 171
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
T0e sale o% no8 90 +lo0a #o$al to (ir =eo%% an) .r Ho5le$ 172
T0e sale o% no8 20 +lo0a #o$al to (ir =eo%% an) .r 6o<er 1>2
(ir =eo%%?s loan o% B750*000 1>>
T0e sale o% no8 22 +lo0a #o$al to .r 4nno'ent 151
T0e sale o% no8 2" +lo0a #o$al to .r an) .rs #oberts 157
T0e 5ur'0ase o% no8 52 +lo0a #o$al b$ .r Cor)ner an) .r Bar9le$ 155
T0e sale o% no8 2> +lo0a #o$al to .r Cen$on 127
.r Cor)ner?s o<n in;estments 122
E8 .r Cor)ner?s 're)ibilit$
T0e '0allen1e to .r Cor)ner?s 're)ibilit$ 1->
T0e tra'in1 'laim 1"0
F8 T0e s5e'ial )eal
T0e se'ret nature o% t0e s5e'ial )eal 197
T0e bene%it o% t0e eD'0an1e rate 207
T0e real reason %or t0e s5e'ial )eal 20-
G8 T0e re5resentations 211
#.= an) its )e;elo5ments 212
C0airman o% #.= 272
#.=?s o%%i'es 277
Eer$ 'lose to .r Hone 27>
.r Hone?s 5artner 275
+ 1oo) )eal 2>7
.r Cor)ner?s 5ur'0ase o% t0e a5artments 2>"
.r Cor)ner?s %amil$ 250
T0e )is'ount an) t0e u5 %ront 5a$ment 251
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
Fnl$ one a5artment a;ailable 252
T0e return on t0e in;estment 25"
T0e time t0e 'onstru'tion <oul) ta9e 220
+ se5arate a''ount 221
T0e return o% t0eir mone$ 227
T0e use o% la<$ers 2-0
6re;ious 5ur'0asers 2-"
.r Cor)ner?s 'ommission 2"1
=oin1 0al;es <it0 .r Bar9le$ 2"2
+ s5e'ial 5ri'e 2">
T0e '0eAues 5a$able to #.= 2"2
(ir =eo%%?s 5romotional a1reement 2"-
(ir =eo%%?s loan o% B750*000 290
H8 T0e 'auses o% a'tion
,e'eit 701
Ne1li1ent mis/statement 70"
Brea'0 o% trust 717
Brea'0 o% %i)u'iar$ )ut$ 715
Cons5ira'$ 727
6artners0i5 722
.r Cen$on?s tra'in1 'laim a1ainst .r an) .rs Cor)ner 772
I8 Ft0er issues
T0e 'laimants? 'ontributor$ ne1li1en'e 777
(ir =eo%%?s liabilit$ to 'ontribute 77>
Cre)it to be 1i;en b$ t0e 'laimants 772
J8 Con'lusion 7>1
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
A. Introduction
18 T0is 'ase is all about a )e;elo5ment on t0e Costa )el (ol8 4t <as 'alle) +lo0a #o$al8
T0e 'laimants <ere all 5ersua)e) to bu$ a5artments in t0e )e;elo5ment o%%/5lan an)
to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e be%ore t0e a5artments <ere built8 T0e$
t0ou10t t0at t0e$ <oul) be 1ettin1 a 1oo) return on t0eir in;estment8 4n %a't* t0e$
1ot not0in1 be'ause t0e )e;elo5er to <0om t0e$ 5ai) t0e 5ur'0ase 5ri'e <as not in a
5osition to 'on;e$ 1oo) title to t0e a5artments8 T0e 'ase 0as attra'te) a 1oo) )eal o%
5ubli'it$ be'ause one o% t0e 'laimants is t0e %ootballer* (ir =eo%% Hurst8
28 +lt0ou10 t0ere are se;en )e%en)ants* t0is is t0e 'ourt?s :u)1ment %ollo<in1 t0e trial o%
t0e a'tion a1ainst onl$ t<o o% t0em* .ar9 Cor)ner an) 0is <i%e (an)ra* <0o are t0e
se'on) an) se;ent0 )e%en)ants8 Fne o% t0e ot0er )e%en)ants* Wil'0ester Hol)in1s
4n'* t0e %ourt0 )e%en)ant* no lon1er eDists as an entit$ 'a5able o% bein1 sue)* an) t0e
ot0er )e%en)ants (<it0 t0e eD'e5tion o% =ros;enor (Auare 4n;estments 4n'* t0e %i%t0
)e%en)ant) 0a;e not been ser;e) <it0 t0e 5ro'ee)in1s* eit0er be'ause t0eir
<0ereabouts are un9no<n (as is t0e 'ase <it0 .i'0ael Hone* t0e %irst )e%en)ant)* or
be'ause t0e 5ur5orte) ser;i'e o% t0e 5ro'ee)in1s on t0em (as is t0e 'ase <it0 #o$al
.arbella =rou5 o% Com5anies (* t0e t0ir) )e%en)ant* an) +@ul 6ro5erties (* t0e
siDt0 )e%en)ant* bot0 o% <0i'0 are 'om5anies in'or5orate) in (5ain) <as not in
a''or)an'e <it0 (5anis0 la<8 =ros;enor (Auare 4n;estments 4n' 0as been ser;e)
<it0 t0e 5ro'ee)in1s* but t0e 'laimants 0a;e ele'te) not to 5ro'ee) <it0 t0e 'laim
a1ainst it* be'ause it is sus5e'te) t0at it ma$ be <ort0less8
78 T0e onl$ 'laim a1ainst .rs Cor)ner is a tra'in1 'laim <0i'0 is brou10t a1ainst 0er as
<ell as .r Cor)ner* be'ause one o% t0e 'laimants* 6aul Cen$on* t0e %i%t0 'laimant*
sa$s t0at t0e sum 0e 5ai) %or t0e a5artment 0e <as bu$in1 <as imme)iatel$ use) b$
.r Cor)ner to 5a$ %or a 0ouse <0i'0 0e an) .rs Cor)ner <ere :ointl$ 5ur'0asin1*
an) t0at <0en t0at 0ouse <as e;entuall$ sol)* t0e 5ro'ee)s o% sale <ere use) to 5a$
%or t0e 0ouse in <0i'0 t0e$ are no< li;in18 +''or)in1l$* t0e trial 0as been to all
intents an) 5ur5oses t0e trial o% t0e 'laimants? 'laim a1ainst .r Cor)ner8 His 'ase in
a nuts0ell is t0at t0e real ;illain o% t0e 5ie'e is .i'0ael Hone* an) t0at 0e is as mu'0 a
;i'tim o% .r Hone?s %rau)ulent be0a;iour as t0e 'laimants8 4n)ee)* 0e sa$s t0at 0e
too <as 'onne) b$ .r Hone into in;estin1 in 5ro5ert$ in (5ain* an) <as at one time
one o% t0e 5eo5le 1i;in1 t0e 'laimants? soli'itors instru'tions G albeit in)ire'tl$ G
about t0e 5ro'ee)in1s <0i'0 t0e 'laimants <ere 'ontem5latin1 brin1in1 a1ainst .r
Hone or 0is 'om5anies8
>8 (a;e %or one issue* t0e trial 0as been limite) to issues o% liabilit$8 T0e onl$ issue
relatin1 to Auantum <0i'0 0as been a))resse) is <0et0er an$ 're)it is to be 1i;en
a1ainst t0e 'laimants? 'laims %or )ama1es %or t0e in;estments t0e$ ma)e* an) i% so on
<0at basis8 T0e$ 'laim t0at t0eir in;estments are 'om5letel$ ;alueless* but e;en i%
t0e$ are not* it <oul) not be <ort0<0ile embar9in1 on liti1ation in (5ain a1ainst t0e
'om5an$ <0i'0 ori1inall$ o<ne) t0e lan) on <0i'0 t0e a5artments t0e$ bou10t <ere
to be built* or a1ainst t0e 'om5an$ <0i'0 a'Auire) t0e lan) an) built t0e a5artments8
58 ea;in1 asi)e t0e tra'in1 'laim a1ainst .r an) .rs Cor)ner* t0e 'laimants rel$ on siD
'auses o% a'tion a1ainst .r Cor)ner relatin1 to t0e a5artments t0e$ bou10t8 T0e %irst
t<o are base) on re5resentations <0i'0 <ere alle1e)l$ ma)e to t0em b$ .r Cor)ner
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
an) <0i'0 in)u'e) t0em to bu$ t0e a5artments an) 5a$ t0e entire 5ur'0ase 5ri'e u5
%ront an) <it0out se'urit$8 T0ose re5resentations are alle1e) to be %alse8 To t0e
eDtent t0at it is 5ro;e) t0at .r Cor)ner 9ne< t0e$ <ere %alse* t0e 'ause o% a'tion is
)e'eit8 To t0e eDtent t0at it is not 5ro;e) t0at 0e 9ne< t0e$ <ere %alse* t0e 'ause o%
a'tion is ne1li1ent mis/statement on t0e basis t0at 0is relations0i5 <it0 t0e 'laimants
<as su'0 t0at 0e o<e) t0em a )ut$ o% 'are to ensure t0at <0at 0e <as tellin1 t0em
<as true* an) t0at 0e 0a) 0a) no reasonable 1roun)s %or t0in9in1 t0at t0e$ mi10t be
true8
28 T0e neDt t0ree 'auses o% a'tion are all an elaboration o% t0ese t<o 'auses o% a'tion*
an) in some res5e'ts )e5en) on t0e 'laimants 5ro;in1 t0e same re5resentations an)
t0at t0e$ <ere %alse8 T0e$ are brea'0 o% trust* brea'0 o% %i)u'iar$ )ut$ an)
'ons5ira'$8 But t0e %inal 'ause o% a'tion is more im5ortant be'ause it is establis0e)*
sa$ t0e 'laimants* e;en i% su'0 re5resentations as .r Cor)ner is %oun) to 0a;e ma)e*
t0ou10 %alse* <ere ma)e neit0er )e'eit%ull$ nor ne1li1entl$8 4t is sai) t0at on a true
anal$sis o% 0is relations0i5 <it0 .r Hone* 0e an) .r Hone <ere in 5artners0i5 <it0
ea'0 ot0er <0en it 'ame to t0e a5artments <0i'0 t0e 'laimants <ere bu$in1* an) in
t0at <a$ .r Cor)ner be'ame liable %or <0at .r Hone 0a) )one )e'eit%ull$ in
%urt0eran'e o% t0e 5artners0i5?s ob:e'ti;es8
-8 3inall$* t0ere are t<o ot0er 'auses o% a'tion a1ainst .r Cor)ner <0i'0 are
in)e5en)ent o% t0e a5artments <0i'0 t0e 'laimants <ere 5ersua)e) to bu$8 (ir =eo%%
entere) into a 5romotional a1reement <it0 .r Hone?s 'om5an$ an) lent .r Hone
B750*000 a lar1e 5art o% <0i'0 remains un5ai)8 He 'laims t0at 0e <as in)u'e) to
enter into t0e 5romotional a1reement an) to ma9e t0at loan b$ re5resentations ma)e
to 0im b$ .r Cor)ner8 T0ose re5resentations are alle1e) to be %alse8 To t0e eDtent
t0at it is 5ro;e) t0at .r Cor)ner 9ne< t0e$ <ere %alse* t0e 'ause o% a'tion on'e a1ain
is )e'eit8 To t0e eDtent t0at it is not 5ro;e) t0at .r Cor)ner 9ne< t0e$ <ere %alse*
t0e 'ause o% a'tion is ne1li1ent mis/statement8
B. The background facts
"8 .an$ o% t0e ba'91roun) %a'ts are un'ontro;ersial* but an a55re'iation o% t0em is
'riti'al to an un)erstan)in1 o% t0e 'ase8 4 trust t0at 4 <ill be %or1i;en %or re'itin1
t0em in some )etail* t0ou10 it is ne'essar$ to start <it0 <0at is 9no<n about .r Hone
an) .r Cor)ner8
98 Michael Hone8 .r Hone 0as use) t0e names .i'0ael .et'al% an) .i'0ael .et'al%/
Hone8 He <as born in 19>2 an) is no< 27 $ears ol)8 4n t0e name o% .i'0ael
.et'al%* 0e <as sue) in t0e En1lis0 'ourts b$ a ,anis0 ban9 in =ibraltar* an) <as
%oun) to 0a;e 9no<in1l$ assiste) t0e mana1in1 )ire'tor o% t0e ban9 in a series o%
%rau)s 'onsistin1 o% loans to 'om5anies 'ontrolle) %or t0e most 5art b$ .r Hone
en1a1e) in t0e )e;elo5ment o% 0oli)a$ ;illas on t0e Costa )el (ol an) else<0ere8
&u)1ment <as entere) a1ainst 0im an) ot0ers %or about B22m in'lusi;e o% interest8
T0e :u)1ment tal9e) o% 0im 0a;in1 1one to (5ain in 19-9 %ollo<in1 t0e %ailure o% a
business <0i'0 su55lie) 'ommer'ial ;e0i'les8 He <as base) in (5ain t0rou10out t0e
time <it0 <0i'0 t0is 'ase is 'on'erne)8
108 &ust as :u)1ment <as about to be 0an)e) )o<n in t0e ,anis0 ban9 'ase* a number o%
'om5anies in <0i'0 .r Hone a55arentl$ 0a) an interest be1an to be in'or5orate)8
T0e %irst <as t0e %ourt0 )e%en)ant* Wil'0ester Hol)in1s 4n'8 (HWil'0esterI)8 4t <as
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
in'or5orate) on 15 &ul$ 199- in ,ela<are8 T0e neDt <as t0e %i%t0 )e%en)ant*
=ros;enor (Auare 4n;estments 4n'8 (H=ros;enorI)* also in'or5orate) in ,ela<are* t0is
time on 19 3ebruar$ 199"8 T0ere is no e;i)en'e o% t0e eDtent o% .r Hone?s interest
in t0ese 'om5anies8 T0ere t0en %ollo<e) a series o% 'om5anies in'or5orate) in
(5ain* all but one <it0 re1istere) o%%i'es in .arbella8 (ome o% t0ese 'om5anies 0a)
t0e <or)s H#o$alI an) H.arbellaI in t0eir names:
#o$al .arbella an) (* in'or5orate) on 25 3ebruar$ 199"
#o$al .arbella 4n;est (* in'or5orate) on 25 3ebruar$ 199"
#o$al .arbella =ol% an) Countr$ Club (* in'or5orate) on 1" .ar'0
199"
#o$al .arbella ,e;elo5ment an) Constru'tion (* in'or5orate) on 27
&ul$ 199"
T0e nature o% t0e business o% t0ese 'om5anies <as re'or)e) as Hrentin1 real estateI
<it0 t0e eD'e5tion o% t0e last* t0e nature o% <0ose business <as re'or)e) as
H'onstru'tionI8 T0e %a't t0at t0ese 'om5anies all 0a) En1lis0 names su11ests t0at t0e
5ro5erties to <0i'0 t0e$ relate) <ere to be mar9ete) in En1lis0/s5ea9in1 'ountries*
no )oubt 5rimaril$ in t0e JC8
118 Com5an$ re'or)s )i) not )is'lose <0o t0e s0are0ol)ers o% t0ese 'om5anies <ere*
be'ause <0ere a 'om5an$?s s0are 'a5ital is belo< a 'ertain %i1ure G an) t0e s0are
'a5ital o% t0ese 'om5anies <as 5resumabl$ belo< t0at %i1ure G (5anis0 la< )oes not
reAuire t0e i)entities o% s0are0ol)ers to be ma)e 5ubli'8 Ho<e;er* .r Hone <as
a55ointe) a 5roD$ in ea'0 o% t0ese 'om5anies on 2" ,e'ember 199"8 Jn)er (5anis0
la<* a 5roD$ is someone <0o is em5o<ere) to a't on be0al% o% a 'om5an$ 5ursuant to
a 5o<er o% attorne$ 1i;en b$ t0e a)ministrator o% t0e 'om5an$8
128 4n )ue 'ourse* t0e t<o (5anis0 'om5anies <0i'0 are )e%en)ants in t0is 'ase <ere
in'or5orate)8 T0e %irst <as t0e siDt0 )e%en)ant* +@ul 6ro5erties ( (H+@ulI)* <0i'0
<as in'or5orate) on 1> .a$ 19998 4ts re1istere) o%%i'e <as also in .arbella8 T0e
nature o% its business too <as re'or)e) as Hrentin1 real estateI* an) it <as re'or)e) as
0a;in1 no em5lo$ees8 T0is <as t0e 'om5an$ <0i'0 <as to o<n t0e lan) on <0i'0
t0e a5artments <0i'0 t0e 'laimants 5ur'0ase) <ere to be built8 Fn'e a1ain* 'om5an$
re'or)s )i) not )is'lose <0o t0e s0are0ol)ers o% +@ul <ere* but a bro'0ure %or t0e
)e;elo5ment <0i'0 <as 5ro)u'e) at t0e be1innin1 o% 2007 (Ht0e 2007 bro'0ureI)
s0o<s t0at Wil'0ester o<ne) 50K o% +@ul?s s0ares* an) t0e ot0er 50K <ere o<ne) b$
,o;ereen 4n;estments 4n'8 (H,o;ereenI) T0is <as a 'om5an$ in'or5orate) in t0e
Britis0 Eir1in 4slan)s on 12 (e5tember 1999* but a5art %rom t0at not0in1 is 9no<n
about it8 Ha;in1 sai) t0at* sin'e .r Hone is sai) to 0a;e an interest in Wil'0ester* 0e
<as one o% t0e 5eo5le be0in) +@ul8 4n)ee)* 0e <as a55ointe) a )ire'tor o% +@ul on
22 &ul$ 2002 an) its sole a)ministrator on 29 No;ember 20028
178 3inall$* on 2> +5ril 2001 #o$al .arbella =rou5 o% Com5anies ( (H#.=I) <as
in'or5orate)8 4ts re1istere) o%%i'e <as also in .arbella8 T0e nature o% its business
<as re'or)e) as HauDiliar$ %inan'ial real estateI* an) it <as re'or)e) as 0a;in1 siD
em5lo$ees8 4t <as un)er t0e name H#o$al .arbella =rou5I t0at t0e )e;elo5ment
<0i'0 in'lu)e) t0e a5artments <0i'0 t0e 'laimants 5ur'0ase) <as mar9ete)8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
4n%ormation about s0are0ol)ers in t0e 'om5an$?s re'or)s s0o<s t0at .r Hone <as t0e
sole )ire'tor o% t0e 'om5an$8 He <as a55ointe) an a)ministrator o% t0e 'om5an$ on
12 .ar'0 2002* an) <0en t0e 6all .all* on)on* bran'0 o% t0e Ban'o )e (aba)ell
<as a55ointe) #.=?s ban9ers* .r Hone )es'ribe) 0imsel% as t0e sole a)ministrator
o% t0e 'om5an$8
1>8 Mark Cordner8 .r Cor)ner <as born in 1922 an) is no< >- $ears ol)8 He <or9e)
%or Nor<i'0 Jnion an) t0en +llie) ,unbar %or -/" $ears sellin1 t0eir %inan'ial
5ro)u'ts8 He 0as no a'a)emi' Auali%i'ations* but <0ile 0e <as <it0 +llie) ,unbar 0e
sat some eDaminations on %inan'ial 5lannin1 an) mort1a1es8 T0ese 'onsiste) %or t0e
most 5art o% multi5le '0oi'e Auestions an) ma$ not 0a;e been 5arti'ularl$ taDin18
158 .r Cor)ner 0a) 0a) some 9no<le)1e o% t0e (5anis0 5ro5ert$ mar9et be%ore 0e met
.r Hone8 4n 2002* 0e bou10t t<o 5ro5erties o%%/5lan in a )e;elo5ment 9no<n as os
3lamin1os* an) one in a )e;elo5ment 9no<n as ,ominion Bea'08 He <as to sell one
o% t0e 5ro5erties at os 3lamin1os %or a 5ro%it o% about L50*000 be%ore taD* an) t0e
one in ,ominion Bea'0 (<0i'0 0e 0a) not bou10t o%%/5lan) %or a 5ro%it o% about
L150*000 be%ore taD8 4n a))ition to bu$in1 5ro5erties in (5ain* .r Cor)ner <as also
sellin1 t0em o%%/5lan as a sales a1ent %or )e;elo5ers8 T0e main )e;elo5ment <as os
3lamin1os8 He sol) >/5 5ro5erties t0ere* no )oubt earnin1 a 'ommission on ea'0
sale8 4t loo9s as i% t0e 'or5orate ;e0i'le t0rou10 <0i'0 0e tra)e) in t0is <a$ %rom
No;ember 2002 <as Euro 6ro5ert$ (olutions t)* o% <0i'0 .r an) .rs Cor)ner
o<ne) >5K o% t0e s0ares8 4t <as in 2002 t0at 0e met .aribel =allar)o* a (5anis0
la<$er* <0o a'te) %or 0im on t0e 5ur'0ase o% at least one o% 0is 5ro5erties8
128 The recruitment of Mr Cordner8 .r Cor)ner met .r Hone at a 5ro5ert$ eD0ibition in
ou10ton in late 2002 or earl$ 20078 #.= 0a) an o%%i'e t0ere <0i'0 .r Hone <as
to tell .r Cor)ner <as on a 10 $ear lease8 .r Hone <as 5romotin1 a )e;elo5ment in
.arbella 9no<n as +l)ea Bea'0 t0rou10 #.= <0i'0 .r Cor)ner t0ou10t 0e o<ne)8
4n)ee)* at all times .r Cor)ner re1ar)e) .r Hone an) #.= as one an) t0e same
t0in18 .r Hone sai) t0at 0e <as t0e o<ner o% t0e lan)* an) <as in;ol;e) in a :oint
;enture <it0 t0e )e;elo5ers8 T0e lan) 0a) not $et been )e;elo5e)* but 0e
ne;ert0eless 5ersua)e) .r Cor)ner to 5ur'0ase one o% t0e a5artments to be built in
t0is )e;elo5ment* no8 158 T0e a);anta1e o% bu$in1 5ro5erties o%%/5lan* so .r Hone
sai)* <as t0at t0e 5ur'0ase 5ri'e <as 0ea;il$ )is'ounte)* an) t0e$ 'oul) later be sol)
at a 'onsi)erable 5ro%it* but t0at <as 5resumabl$ somet0in1 <0i'0 .r Cor)ner
alrea)$ 9ne< %rom 0is o<n eD5erien'es o% bu$in1 an) sellin1 5ro5erties o%%/5lan in
(5ain8
1-8 4t <as s0ortl$ a%ter t0is t0at .r Hone as9e) .r Cor)ner to a't as #.=?s a1ent in
En1lan) mar9etin1 its 5ro5erties in (5ain* in'lu)in1 its 5ro5erties at +l)ea Bea'0 an)
+lo0a #o$al8 .r Cor)ner a1ree) to )o so* an) 0is role <as to mar9et #.=?s
5ro5erties in (5ain 0ere8 T0e 'or5orate ;e0i'le t0rou10 <0i'0 0e tra)e) 'ontinue) to
be Euro 6ro5ert$ (olutions t)* but in &ul$ 2007 .r an) .rs Cor)ner a'Auire) t0e
s0ares o% its remainin1 s0are0ol)ers* a marrie) 'ou5le* (te;e Hi'9e$ an) .elanie
3al)o* an) t0erea%ter t0e$ <ere t0e onl$ s0are0ol)ers8 +t t0e same time* t0e
'om5an$ '0an1e) its name to .arbella 6ro5erties t) (H.6I)8 4t tra)e) un)er t0e
st$les H#o$al .arbella =rou5I an) H#o$al .arbella JCI8 4t )i) so %rom an o%%i'e in
Hat%iel) be%ore mo;in1 to ne< o%%i'es in (t +lbans8 4n a))ition .r Cor)ner
mana1e) #.=?s o%%i'e in ou10ton8 He 'ontinue) to be base) in t0e JC t0rou10out
t0e time <it0 <0i'0 t0is 'ase is 'on'erne)8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
1"8 4t is <ort0 'ommentin1 0ere on t0e use o% t0e <or) H#o$alI in t0e st$le un)er <0i'0
.6 tra)e)8 Mou 'annot use t0e <or) H#o$alI in a tra)in1 name <it0out t0e
a55ro;al o% t0e (e'retar$ o% (tate* an) it 0as not been su11este) t0at su'0 a55ro;al
<as e;er sou10t* let alone obtaine)8 4n)ee)* .r Hone must 0a;e sus5e'te) t0at to be
t0e 'ase* be'ause t0ere 'an be no ot0er sensible reason %or <0$ a 'om5an$
in'or5orate) in t0e JC o% <0i'0 .r Hone <as a )ire'tor <as 'alle) #o$alle .arbella
(JC) t)8
198 4n #.=?s bro'0ure 5ro)u'e) in earl$ 200>* .r Cor)ner <as )es'ribe) as C0airman G
4nternational .ar9ets8 He <as sai) to 0a;e Hne1otiate) eD'lusi;e re5resentation %or
t0e #o$al .arbella =rou5 in all 9e$ mar9ets outsi)e (5ainI* an) 0e <as Auote) as
sa$in1 t0at Hm$ teams are no< a);ertisin1 an) eD0ibitin1 all o;er Euro5e e;er$
<ee9I8 + $ear or so later* #.= <as 'allin1 itsel% #o$al =rou5 .arbella rat0er t0an
t0e #o$al .arbella =rou5 i% its 2005 bro'0ure is an$t0in1 to 1o b$8 4n t0at bro'0ure
.r Cor)ner <as t0e %irst o% #.=?s H9e$ 5ersonnelI to be %eature)* an) 0e <as
)es'ribe) as C0airman8 T0e <or)s Hm$ teamsI 0a) no< be'ome Hour
re5resentati;esI8 He <as also )es'ribe) as #.=?s JC sales )ire'tor in 2005 an)
20028 +ll t0is 5resente) t0e 5i'ture to t0e outsi)e <orl) t0at b$ t0e be1innin1 o%
2005 .r Cor)ner 0a) mo;e) %rom a mar9etin1 role to a more 'entralise) one8
208 Fn 2> &une 2007* .r Cor)ner be'ame a si1nator$ on #.=?s ban9 a''ount <it0 t0e
6all .all bran'0 o% Ban'o )e (aba)ell8 T0is <as a sterlin1 a''ount8 4t <as t0e
a''ount into <0i'0 )e5osits %rom 5ur'0asers o% units <oul) be 5ai)* an) out o% <0i'0
t0e 'ommission <0i'0 .r Cor)ner <oul) be earnin1 on sales <0i'0 0e 0a) e%%e'te)
<oul) be 5ai)8 He remaine) a si1nator$ on t0at a''ount until 29 .ar'0 20058
4n)ee)* t0e arran1ements bet<een #.= an) .6 <ere 5arti'ularise) in 0ea)s o%
terms si1ne) b$ .r Hone on be0al% o% #.= an) .r Cor)ner on be0al% o% .68 T0e
)o'ument is a relati;el$ %ormal one* an) alt0ou10 it <as anti'i5ate) t0at Ha more
'om5re0ensi;e 'ontra'tI <oul) be )ra<n u5* it ne;er <as8 T0e )o'ument is not
)ate)* but it <as 5rinte) on 5 &ul$ 2007* an) a sli10tl$ )i%%erent ;ersion <as 5rinte)
on 12 &ul$ 20078 Curiousl$* #.= is re%erre) to as H#o$al .arbella =rou5 (+I8
T0ese 0ea)s o% terms 5ro;i)e) t0at .6 <as to 0a;e t0e sole ri10t to re5resent #.=
in an$ 'ountr$ outsi)e (5ain* an) <it0 t0e eD'e5tion o% sales 5re;iousl$ arran1e) b$
.r Hone an) 0is <i%e* #.= <oul) onl$ )eal <it0 5ur'0asers %rom t0ose 'ountries i%
t0e$ 0a) been intro)u'e) b$ .68 .6 <oul) be entitle) to 'ommission at a rate to
be a1ree)8 Jnusuall$* .6 0a) to 5a$ %or t0e 5ri;ile1e o% bein1 #.=?s eD'lusi;e
a1ent in t0ese 'ountries8 T0e sum it 0a) to 5a$ <as B>50*000* to be 5ai) b$
)e)u'tin1 10K %rom an$ 'ommission )ue to .68 .r Cor)ner 'laims G an) 4 0a;e
no reason to )oubt <0at 0e sa$s G t0at t0is as5e't o% t0e a1reement <as ne;er
im5lemente)8 T0e B>50*000 <as ne;er 5ai)* an) no )e)u'tions <ere e;er ma)e %rom
.6?s 'ommission in res5e't o% it8
218 .r Cor)ner?s 'ase is t0at 0e <as sim5l$ a salesman8 He 0a) no role <it0in #.=
sa;e %or t0e %a't t0at %or a <0ile 0e mana1e) #.=?s o%%i'e in ou10ton8 He <as :ust
5ro;i)in1 t0e ser;i'es o% a sales team t0rou10 .68 T0e titles 0e <as 1i;en <ere
:ust t0at G titles G t0ere to im5ress t0e 5eo5le 0e <as )oin1 business <it0 an) %annin1
0is o<n ;anit$8 Ni'9 Clar9e* .r Cor)ner?s 'ousin* <0o .r Cor)ner re'ruite) as a
sales a1ent %or #.=?s )e;elo5ments %rom +5ril 200>* tal9e) o% .r Cor)ner tellin1
t0e <orl) an) 0is <i%e t0at 0e <as a bi11er %is0 in t0e 5on) t0an 0e reall$ <as G no
)oubt buo$e) u5 b$ t0e %an'$ titles <0i'0 .r Hone 1a;e 0im8 .r Hone an) 0is <i%e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<oul) a55arentl$ lau10 about .r Cor)ner?s titles <0i'0 t0e$ )es'ribe) as '0an1in1
)a$ to )a$8
228 (ome s'e5ti'ism %or t0is ;ie< o% .r Cor)ner?s role <it0in #.= <oul) 0a;e been
:usti%ie) in t0e li10t o% 0ea)s o% terms <0i'0 .r Hone an) .r Cor)ner si1ne) in
3ebruar$ 200>8 T0e )o'ument in <0i'0 t0ese terms <ere in'lu)e) <as not )ate)* but
it <as 5rinte) on > 3ebruar$ 200>8 Han)<ritten a))itions to it s0o< t0at t0e
eD5enses o% .6 <0i'0 0a) 0it0erto been 5ai) b$ #.= <ere to be reimburse) to
#.=8 But <0at <as a55arentl$ a1ree) <as %or #.=?s 5ro5erties to be mar9ete) b$
a ne< 'om5an$ in 5la'e o% .6 to be name) #.= ((5ain) t)8 #.= ((5ain) t)
<oul) not re'ei;e 'ommission* but %or intro)u'in1 5ur'0asers to #.=* #.= <oul)
5a$ 110K o% #.= ((5ain) t)?s runnin1 'osts8 .r Hone* 0is <i%e an) .r Cor)ner
<ere ea'0 to be allotte) one/t0ir) o% #.= ((5ain) t)?s s0ares8 6ro%its 'oul) not be
)istribute) <it0out t0e :oint a1reement o% .r Hone an) .r Cor)ner8 4n a))ition*
alt0ou10 it is un'lear <0at t0is means* .r Cor)ner <oul) re'ei;e a one/t0ir) interest
Hin t0e sales o5erationI o% #.=* an) <oul) ensure t0at Hall sales arisin1 N <ill be
a''ounte) %or t0rou10 t0is o5erationI8 i9e t0e 5ro;ision relatin1 to t0e B>50*000800
in t0e 0ea)s o% terms 5rinte) in &ul$ 2007* .r Cor)ner sa$s t0at t0ese terms <ere
ne;er im5lemente)8
278 4 am satis%ie) t0at #.= ((5ain) t) )i) in)ee) ta9e o;er .6?s res5onsibilities %or
mar9etin1 #.=?s 5ro5erties8 + number o% t0in1s 5oint to t0at8 4t <as in'or5orate)
on 2 3ebruar$ 200>8 Commission 5a$able to salesmen <as to be 5ai) %rom .ar'0
200> b$ #.= ((5ain) t)* not .68 None o% t0e in;oi'es %rom .6 <0i'0 0a;e
been )is'lose) are )ate) a%ter +5ril 200>* sa;e %or t0ose <0i'0 relate to 5ro5erties
sol) be%ore +5ril 200>8 +n) .6?s %inan'ial statements s0o< a )ramati' )e'line in
turno;er %rom B511*955 in t0e $ear en)in1 70 (e5tember 200> to B2"*252 in t0e $ear
en)in1 70 (e5tember 20058 But none o% t0at means t0at all t0e 5ro;isions in t0e
)o'ument 5rinte) on > 3ebruar$ 200> <ere im5lemente) G in 5arti'ular* 0o< #.=
((5ain) t) <as to be 5ai)* 0o< s0ares in it <ere to be allotte)* an) 0o< its 5ro%its
<ere to be )istribute)8 T0ere is not0in1 to su11est t0at t0ese 5ro;isions <ere e;er
im5lemente)* an) t0eir im5lementation <oul) not 0a;e sat <ell <it0 t0e sort o% role
<0i'0 in m$ o5inion .r Hone <oul) 0a;e re1ar)e) as a55ro5riate %or .r Cor)ner8
4n t0e 'ir'umstan'es* 4 1o alon1 <it0 .r Cor)ner?s a''ount o% 0is limite) role <it0in
#.=* t0ou10 4 s0oul) a)) t0at #.= ((5ain) t) <as stru'9 o%% t0e #e1ister o%
Com5anies on 1 No;ember 2005 %or %ailin1 to %ile an annual return* an) %rom t0en t0e
res5onsibilit$ %or mar9etin1 #.=?s 5ro5erties %ell on Worl) 6ro5ert$ =rou5 t)
(HW6=I)* <0i'0 <as in'or5orate) on - No;ember 2005 an) <0ose sole s0are0ol)er
<as .r Cor)ner8
2>8 The special deal8 T0e 'ommission <0i'0 .r Cor)ner sai) 0e an) .6 <ere initiall$
earnin1 <as bet<een -/10K o% t0e 5ur'0ase 5ri'e o% t0e units 0e sol)8 4t )e5en)e)
on 0o< lar1e t0e )e5osit %or ea'0 unit <as8 He also earne) o;erri)e 'ommission on
t0e sales 1enerate) b$ t0e salesmen 0e re'ruite)8 T0at ten)e) to <or9 out at about 1/
2K o% t0e 5ur'0ase 5ri'e o% t0e units sol) b$ t0ose salesmen8 T0at 'om5are) rat0er
<ell <it0 <0at t0e salesmen <ere 1ettin18 .r Clar9e sai) t0at 0is 'ommission
starte) at 1OK o% t0e 5ur'0ase 5ri'e an) later <ent u5 to 2K8 But t0ere 'ame a time
G .r Cor)ner sa$s t0at it <as in about .a$ 2007 G <0en a )i%%erent 'ommission
arran1ement <as ne1otiate) bet<een 0im an) .r Hone %or a limite) number o%
a5artments at +lo0a #o$al %or <0i'0 t0e list 5ri'e in t0e 2007 bro'0ure <as L>->*"008
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
T0ese a5artments G 10 in all G <ere initiall$ to be mar9ete) at L29"*000 )es5ite t0e
list 5ri'e an) .r Cor)ner <as to be 5ai) 'ommission o% L">*700 %or ea'0 a5artment
0e sol)8 T0e re)u'e) 5ri'e at <0i'0 t0e a5artments <ere to be mar9ete) to1et0er
<it0 t0e si@e o% t0e 'ommission is one o% t0e reasons <0$ t0e 'laimants sa$ t0at t0e
arran1ement bet<een .r Hone an) .r Cor)ner o;er t0ese a5artments <as a9in to
5artners0i5 rat0er t0an 5rin'i5al an) a1ent* an) t0at t0e$ 0a) a1ree) to s5lit t0e
5ur'0ase 5ri'e bet<een t0em8 .r Cor)ner sa$s G an) 4 0a;e no reason to )oubt it G
t0at t0e )eal <as o%%ere) to t0e ot0er s0are0ol)ers in Euro 6ro5ert$ (olutions t) as
<ell* but .elanie 3al)o <as t0e sister o% (te;e #o'9all* #.=?s 4nternational
.ar9etin1 ,ire'tor* an) s0e 0a) %allen out <it0 .r #o'9all8 .r Hone ba'9e) .r
#o'9all o;er 0er* an) s0e sai) t0at s0e an) .r Hi'9e$ <oul) 0a;e not0in1 more to )o
<it0 .r Cor)ner* <0i'0 <as <0$ t0e$ <al9e) a<a$ %rom t0e )eal .r Hone <as
o%%erin18
258 W0$ <as .r Hone 5re5are) to o%%er .r Cor)ner t0is s5e'ial )eal %or 10 a5artments at
+lo0a #o$alP T0at is a 0i10l$ 'ontentious issue* but .r Cor)ner sa$s t0at .r Hone
tol) 0im t0at 0e nee)e) to raise L7m ur1entl$ so t0at 0e 'oul) Hbu$ out 0is business
5artner in a lan) )ealI8 He t0ou10t t0at t0e lan) )eal ma$ 0a;e relate) to +lo0a
#o$al* t0ou10 later in 0is e;i)en'e 0e sai) t0at t0is 5ossibilit$ onl$ o''urre) to 0im
later on8 .r Hone sai) t0at 0is business 5artner* <0o <as 2"* 0a) %allen in lo;e <it0
a 22 $ear ol) #ussian 1irl* an) t0e$ <ere 1oin1 o%% to li;e on an islan) some<0ere8
.r Cor)ner a))e) t0at .r Hone sai) t0at 0e* .r Hone* H<oul) ma9e a lot more
mone$ %rom %uture sales in t0e +lo0a #o$al )e;elo5ment in t0e lon1 run on'e 0e 0a)
remo;e) 0is 5artnerI8 T0e 'laimants sa$ t0at t0is 0ar)l$ eD5lains <0$ .r Hone <as
'ontent to re)u'e t0e 5ur'0ase 5ri'e o% t0e a5artments b$ su'0 a lar1e amount an) <as
5re5are) to 5a$ .r Cor)ner su'0 a 0u1e 'ommission on to5 o% t0at8 Woul) not .r
Hone 0a;e 1ot .r Cor)ner :ust as intereste) i% 0e 0a) o%%ere) 'ommission o%* sa$*
L>0*000P .r Cor)ner?s res5onse <as t0at .r Hone 'oul) a%%or) to be 1enerous o;er
0is 'ommission to 1et t0e best out o% .r Cor)ner be'ause .r Hone 0a) sai) t0at on'e
0e 0a) bou10t out 0is 5artner* H0e?) ma9e millionsI8
228 +''or)in1 to .r Cor)ner* .r Hone sai) t0at t0e 5ur'0asers o% t0ese 10 a5artments
<oul) 0a;e to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e u5 %ront (unli9e 5ur'0asers o% ot0er
units at +lo0a #o$al an) t0e 5ur'0asers o% units at #.=?s ot0er )e;elo5ments <0o
0a) to 5a$ a )e5osit o% usuall$ onl$ 70K o% t0e 5ur'0ase 5ri'e <0en bu$in1 units o%%/
5lan <it0 t0e balan'e 5a$able on 'om5letion)8 4n)ee)* .r Clar9e )i) not re'all a
time <0en t0e 5ur'0asers <ere bein1 reAuire) to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e
u5 %ront8 T0e reason .r Hone 1a;e 0im %or <antin1 to 1et t0e <0ole o% t0e 5ur'0ase
5ri'e u5 %ront* so .r Cor)ner sa$s* <as be'ause 0e nee)e) to raise t0e 'a5ital
Himme)iatel$I to bu$ out 0is business 5artner8
2-8 +1ain* t0e 'laimants sa$ t0at t0is )oes not be1in to eD5lain <0$ .r Hone <as
5re5are) to re)u'e t0e 5ri'e %or t0ese 10 a5artments b$ su'0 a lar1e amount* on to5 o%
t0e 0u1e 'ommission 0e <oul) be 0a;in1 to 5a$ .r Cor)ner8 But e;en i% .r Hone
0a) tol) .r Cor)ner t0at 0e <as )oin1 it be'ause 0e nee)e) to raise mone$ Aui'9l$*
t0e 'laimants sa$ t0at it <oul) 0a;e tol) .r Cor)ner t0at .r Hone )i) not 0a;e
a''ess to 'on;entional %orms o% borro<in1 %or one reason or anot0er8 4n)ee)* .r
Clar9e sa$s t0at .r Cor)ner tol) 0im t0at 5re/%un)in1 <as ne'essar$ in or)er to
%inan'e t0e 'onstru'tion o% t0e )e;elo5ment* but .r Clar9e a))e) t0at 0a) .r Hone
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
tol) 0im* .r Clar9e* to as9 %or t0e <0ole o% t0e 5ur'0ase 5ri'e u5 %ront* 0e <oul)
0a;e be1un to <on)er <0et0er .r Hone 0a) %un)in1 5roblems8
2"8 .r Clar9e <ent on to sa$ t0at b$ 2005 0e <oul) 0a;e %elt ;er$ uneas$ about
mar9etin1 5ro5erties %or #.= on t0e basis t0at t0e <0ole o% t0e 5ur'0ase 5ri'e 0a) to
5ai) u5 %ront8 T0at is be'ause b$ t0en 0e 0a) be'ome 'on'erne) t0at #.= 0a)
'olle'te) )e5osits %or )e;elo5ments %or <0i'0 t0e 'onstru'tion 0a) not $et be1un8
Normall$* .r Clar9e sai)* $ou <oul) be 9een to 1et t0e 'onstru'tion o% t0e
)e;elo5ment un)er<a$* be'ause it <as onl$ <0en t0e 'onstru'tion <as 'om5lete)
t0at $ou <oul) 1et t0e balan'e o% t0e 5ur'0ase 5ri'e8 But .r Hone al<a$s 0a) a ne<
stor$ about <0$ t0e 'onstru'tion o% t0e )e;elo5ments )i) not 1et 1oin18 E;entuall$*
.r Clar9e <as to tell .r Cor)ner t0at 0e )i) not belie;e a <or) o% <0at .r Hone
sai)8 T0in1s 0a) be1un Hto smellI so mu'0 t0at in (e5tember or F'tober 2005 0e
sto55e) <or9in1 %or #.=8 Bot0 0is 5arents an) 0is brot0er 0a) in;este) in #.=?s
)e;elo5ments* t0ou10 not at +lo0a #o$al* an) t0e$ all lost mone$8
298 But .r Cor)ner sa$s t0at none o% t0at o''urre) to 0im at t0e time8 He re1ar)e) t0e
)eal <0i'0 .r Hone 5ut to 0im as so eD'itin1 an o55ortunit$ t0at 0e Hreser;e)I all 10
a5artments 0imsel%8 T0e e%%e't o% t0at <as t0at no/one else 'oul) mar9et t0em8 T0e
5otential returns <ere so outstan)in1 t0at 0e 5romote) t0e a5artments to 0is %amil$
an) %rien)s (t0ou10 no members o% 0is %amil$ 5ur'0ase) an$ o% t0em) an) e;en
5ur'0ase) t<o o% t0e a5artments 0imsel% G no8 52 (<0i'0 0e 5ur'0ase) t0rou10 a
'om5an$ o<ne) b$ 0im* 6a))in1ton 6ro5erties 4n'8) an) no8 52 (<0i'0 0e bou10t
:ointl$ <it0 .r Bar9le$)8 .r 4nno'ent bou10t no8 228 .r an) .rs #oberts bou10t
no8 2"8 (ir =eo%% Hurst (to1et0er <it0 &onat0an 6o<er) bou10t no8 20 an) (to1et0er
<it0 Teren'e Ho5le$* t0e %ourt0 'laimant) no8 90 as <ell8 (ome time later .r
Cen$on <as to bu$ no8 2> at an in'rease) 5ri'e o% L720*0008
708 .r Cor)ner a'9no<le)1e) t0at t0e mat0emati's )i) not a)) u58 4% 0e <as to be 5ai)
a 'ommission o% L">*700 on ea'0 sale at L29"*000* t0at <oul) 0a;e le%t .r Hone <it0
net 5ro'ee)s o% sale o% onl$ L217*-008 E;en i% .r Hone re'ei;e) t0at %or all 10
a5artments* t0at onl$ 1a;e 0im L2*17-*000 <0ereas <0at 0e 0a) <ante) to enable 0im
to bu$ out 0is 5artner 0a) been L7m8 .r Cor)ner 'oul) not eD5lain t0at8
6resumabl$ 0e t0ou10t t0at .r Hone 0a) t0e balan'e o% L"27*000 <it0in 0is o<n
resour'es or 5ro5ose) to raise it t0rou10 ot0er sour'es o% %inan'e8 He 0a) not 1i;en
mu'0 t0ou10t to <0$ .r Hone 0a) not resorte) to more 'on;entional %orms o%
borro<in1 rat0er t0an sellin1 t0e a5artments at a ;er$ si1ni%i'ant )is'ount an) 1i;in1
.r Cor)ner su'0 a 0u1e 'ommission (<0i'0 .r Cor)ner sai) <as t0e best
'ommission 0e 0a) e;er earne))* t0ou10 0e 9ne< t0at .r Hone )i) not borro<
mone$ %rom ban9s* be'ause t0at <as <0at .r Hone 0a) tol) 0im on'e8 He ne;er
sai) <0et0er .r Hone 0a) e;er eD5laine) to 0im <0$ t0at <as8 4% t0at is in)ee) true*
t0e 'laimants sa$ t0at t0is s0oul) at t0e ;er$ least 0a;e set alarm bells rin1in18
718 The marketing of RMGs deelopments8 +lo0a #o$al <as :ust one o% a number o%
)e;elo5ments <0i'0 #.= mar9ete) on t0e Costa )el (ol* t0e Costa )e la u@ an) in
Teneri%e8 Fne o% #.=?s mar9etin1 strate1ies <as to 5ersua)e 'elebrities to en)orse
its )e;elo5ments8 T0at is 0o< (ir =eo%% be'ame in;ol;e) <it0 #.=8 He <as not
alone8 T0e names an) 50oto1ra50s o% (ir (te;e #e)1ra;e* Cim Wil)e* Ton$
Jn)er<oo) an) ot0ers %eature 5rominentl$ in #.=?s 5romotional material8 +not0er
o% its mar9etin1 strate1ies <as to s5onsor e;ents su'0 as ra'in1 at #o$al Win)sor
ra'e'ourse o;er t0ree )a$s in &une 200>8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
728 The land8 T0e lan) on <0i'0 +lo0a #o$al <as to be built <as re1istere) un)er title
7599> in t0e muni'i5alit$ o% .arbella8 4t <as trans%erre) to +@ul b$ a )ee) o% sale
)ate) 2" &une 19998 +@ul t0en be1an to arran1e %or t0e )e;elo5ment o% t0e lan)8
T0e 2007 bro'0ure s0o<s t0at in ,e'ember 2000 5lans %or t0e )e;elo5ment 0a) been
)ra<n u5 b$ ar'0ite'ts* <0i'0 0a) been stam5e) as re'ei;e) b$ t0e aut0orities in
.ala1a on - .ar'0 20018 T0e bro'0ure re'or)s t0at in ,e'ember 2002 it 0a) been
'on%irme) t0at Ht0e li'en'eI* 5resumabl$ t0e buil)in1 li'en'e* 0a) been a55ro;e)* an)
t0at it <as eD5e'te) t0at Hbuil)in1I* 5resumabl$ 'onstru'tion* <oul) HmobiliseI* i8e8
be1in* in +5ril (5resumabl$ +5ril 2007)8 4t is t0at <0i'0 )ates t0e bro'0ure to t0e
earl$ 5art o% 20078 T0e name o% t0e )e;elo5ment <as to be +lo0a #o$al* an) t0e
buil)in1 li'en'e <as in %a't issue) to +@ul on 2- .a$ 20078
778 T<o 'omments s0oul) be ma)e about t0e 2007 bro'0ure8 3irst* it 1a;e )etails about
t0e nature o% t0e )e;elo5ment8 92 a5artments <ere to be built in t0ree 50ases8 T0e$
<ere to be sol) at t0ree )i%%erent 5ri'es: L>->*"00* L-21*215 an) L"-1*>2"* t0ou10
one <as to be sol) at L550*0008 T0e bro'0ure re'or)e) t0at b$ t0en 1- o% t0e
a5artments 0a) been sol)8 None o% t0em <ere amon1 t0e a5artments <0i'0 t0e
'laimants <ere subseAuentl$ to bu$8 (e'on)l$* t0e bro'0ure a55ears to 0a;e been
5ublis0e)* not so mu'0 to mar9et t0e in)i;i)ual a5artments in t0e )e;elo5ment* but
rat0er to raise mone$ %or t0e 'onstru'tion o% t0e )e;elo5ment8 4t o%%ere) 25K o% t0e
s0ares in +@ul at a 5ri'e o% L2*>20*100* <0i'0 amounte) to 25K o% t0e 'osts o%
L9*">0*>15 <0i'0 0a) been in'urre) t0us %ar %or t0e 5ur'0ase o% t0e lan)* 5ro%essional
%ees an) ot0er 'osts8 +t t0e %ront o% t0e bro'0ure* ,o;ereen )is'laime) liabilit$ %or
an$ in%ormation 'ontaine) <it0in it* an) t0at rat0er su11ests t0at it <as ,o;ereen?s
s0ares in +@ul <0i'0 <ere bein1 o%%ere) rat0er t0an Wil'0ester?s8 4t )oes not loo9 as
i% a bu$er 'oul) be %oun) %or t0e 25K sta9e in +@ul on o%%er* an) .r Hone* <it0 t0e
0el5 o% .r Cor)ner* a55ears to 0a;e embar9e) on a %un)/raisin1 eDer'ise o% t0eir
o<n8 4t <as in t0at 'onteDt t0at t0e 'laimants <ere 5ersua)e) to in;est in t0e
)e;elo5ment8
7>8 A!uls sale of the land8 Fn 1> &anuar$ 200>* +@ul a1ree) to sell t0e lan) to
,esarrollos Jrbanisti'os &imine@ +l;are@ ( (H,u:aI)8 T0e 'laimants an) t0eir
a);isers <ere not a<are o% t0at until 1- +5ril 2009 <0en .r Bar9le$ <as sent a 'o5$
o% t0e a1reement b$ a la<$er in .arbella <it0 <0om .r Cor)ner 0a) 5ut 0im in
tou'08 +lt0ou10 )ate) 1> &anuar$ "##$* t0ere are t0in1s in t0e )o'ument <0i'0
s0o< t0at t0is must 0a;e been a mista9e8 Jn)er t0e a1reement* ,u:a <as not bein1
reAuire) to 5a$ an$t0in1 %or t0e lan)8 W0at it un)ertoo9 to )o <as to buil) t0e 92
a5artments <it0in 72 mont0s o% t0e issue o% t0e buil)in1 li'en'e (<0i'0 is t0e (5anis0
eAui;alent o% t0e 1rant o% 5lannin1 5ermission) an) trans%er 2> o% t0em ba'9 to +@ul8
#.= <as to 0a;e t0e eD'lusi;e ri10t to mar9et t0e 2" remainin1 a5artments %or a %ee
o% 15K o% t0eir list 5ri'e8 +n) in or)er to 9ee5 ,u:a to its un)erta9in1 to buil) t0e 92
a5artments an) to trans%er 2> o% t0em ba'9 to +@ul* ,u:a <as reAuire) to 1i;e
Wil'0ester a ban9 1uarantee %or L7m8 (o <0at +@ul 1ot out o% t0e )eal <as t0at it
<oul) not 0a;e to raise %un)s %or t0e 'onstru'tion o% t0e )e;elo5ment* an) in return
%or trans%errin1 t0e lan) to ,u:a* it <oul) 1et 2> a5artments <0i'0 it 'oul) t0en sell
an) mar9etin1 ri10ts o;er t0e remainin1 2" a5artments8
758 Ha;in1 sai) t0at* t0ere are a number o% %eatures about t0e a1reement <0i'0 are <ort0
'ommentin1 on8 3irst* t0e a1reement 5ur5orte) to ;alue t0e 2> a5artments <0i'0
<ere to be trans%erre) ba'9 to +@ul at L18"m* <0i'0 <or9s out at onl$ L-5*000 an
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
a5artment8 Fn t0e ot0er 0an)* t0e ban9 1uarantee to be 1i;en b$ ,u:a in e%%e't
;alue) t0e 2> a5artments at L7m* <0i'0 <or9s out at L125*000 an a5artment8 4t ma$
be t0at t0ese %i1ures <ere notional %i1ures onl$* or <ere arti%i'iall$ lo< %or taD
reasons8 + (5anis0 la<$er instru'te) on be0al% o% t0e 'laimants %or t0e 5ur5ose o%
t0ese 5ro'ee)in1s* Tomas +1Qera Hert@* sai) t0at un)er;aluin1 5ro5ert$ %or taD
reasons use) to be Ha national s5ortI in (5ain8 But lea;in1 t0ese %i1ures asi)e* t0e
)eal loo9s a 1oo) one %or +@ul8 #oun)in1 t0e %i1ures to t0e nearest L100*000* i% one
ta9es t0e ;alue o% t0e 2> a5artments to be trans%erre) to +@ul as t0eir sale 5ri'es in t0e
2007 bro'0ure* t0eir ;alue 'omes to L1582m8 4% one ta9es t0e ;alue o% t0e 2"
a5artments to be retaine) b$ ,u:a as t0e total sale 5ri'e o% all t0e a5artments in t0e
bro'0ure (L5>8"m) less t0e L1582m %or t0e 2> a5artments to be trans%erre) to +@ul*
<0i'0 'omes to L7982m* +@ul?s 'ommission on t0at %i1ure at t0e rate o% 15K is
L589m8 4% t0at is a))e) to t0e L1582m* +@ul 1ets L2185m out o% t0e )eal* 'om5are)
<it0 t0e 'osts in'urre) u5 to earl$ 2007 o% L98"m a''or)in1 to t0e bro'0ure 1i;en to
.r Cen$on8
728 (e'on)l$* t0e sale <as eD5resse) to be H%ree o% tenants* sAuatters or ot0er o''u5antsI8
T0at su11ests t0at +@ul <as re5resentin1 to ,u:a t0at no/one 0a) at t0at sta1e
a'Auire) an$ ri10ts o;er an$ o% t0e a5artments8 4% t0at <as <0at +@ul <as
re5resentin1* it <as not true8 T0e 2007 bro'0ure s0o<e) t0at b$ earl$ 2007 1- o% t0e
a5artments 0a) been sol)* an) b$ &anuar$ 200> all t0e 'laimants (<it0 t0e eD'e5tion
o% .r Cen$on) 0a) a1ree) to bu$ a5artments in t0e )e;elo5ment an) 0a) 5ai) %or
t0em8 T0ir)l$* t0e 2> a5artments reser;e) %or +@ul in'lu)e) (a) all t0e a5artments
sol) to t0e 'laimants (but not one <0i'0 (ir =eo%% <as to re'ei;e in return %or ma9in1
5ersonal a55earan'es %or #.= an) en)orsin1 t0e )e;elo5ment* no8 20) an) (b) se;en
o% t0e 1- units <0i'0 t0e bro'0ure sai) 0a) alrea)$ been sol)8
7-8 W0en ,u:a a'Auire) t0e lan)* it <as sub:e't to a '0ar1e o% L1-9*2-98"0 <0i'0 0a)
been 5a$able in ,e'ember 20078 But s0ortl$ a%ter its a'Auisition o% t0e lan)* it
mort1a1e) t0e lan) %or a mu'0 lar1er sum G L2>*27>*900 on 1" .a$ 200>8 T0at <as
borro<e) to %inan'e t0e 'onstru'tion o% t0e a5artments8 T0at rat0er su11ests t0at t0e
)eal <as not a 5arti'ularl$ 1oo) one %or ,u:a8 #oun)in1 t0e %i1ures to t0e nearest
L100*000* on'e ,u:a 0a) 5ai) 'ommission o% L589m on t0e 2" a5artments it <oul) be
retainin1* t0e net sale 5ri'e o% t0ose 2" a5artments <oul) be L7787m* a1ainst <0i'0
t0ere <ere borro<in1s <it0 <0i'0 t0e lan) <as '0ar1e) o% L2>8>m* lea;in1 it <it0 a
5ro%it o% onl$ L"89m (less t0e interest 5a$able on t0ose borro<in1s)* )es5ite ta9in1 all
t0e ris9s o% t0e )e;elo5ment8
7"8 T0ere is anot0er 'urious %eature about +@ul?s sale o% t0e lan) to ,u:a8 T0e a1reement
bet<een +@ul an) ,u:a <as unen%or'eable until it 0a) been notarise) b$ a 5ubli'
notar$* an) t0e terms o% t0e a1reement 0a) been entere) in t0e lan) re1ister* <0i'0
<as a;ailable %or 5ubli' ins5e'tion8 T0at o''urre) s0ortl$ be%ore 21 &une 200> <0en
t0e rele;ant taD o%%i'e <as noti%ie) o% t0e terms o% t0e a1reement8 T0e a1reement
must 0a;e been ;arie) b$ t0en* be'ause t0e lan) re1ister s0o<e) t0at onl$ nine
a5artments* not 2>* <ere to be trans%erre) ba'9 to +@ul* an) t0ose a5artments <ere
no< ;alue) at L2m8 T0ose nine a5artments in'lu)e) onl$ t<o o% t0e a5artments sol)
to t0e 'laimants G no8 2> sol) to .r Cen$on* an) no8 90 sol) to (ir =eo%% an) .r
Ho5le$8 (o i% t0e entries in t0e lan) re1ister are an$t0in1 to 1o b$* t0e ot0er
a5artments sol) to t0e 'laimants (as <ell as no8 20 1i;en to (ir =eo%% an) no8 52
5ur'0ase) b$ .r Cor)ner 0imsel%) <ere e%%e'ti;el$ sol) to ,u:a <it0out reser;ation8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
+n) i% t0e entries in t0e lan) re1ister re5resent t0e real terms o% t0e a1reement
bet<een +@ul an) ,u:a* t0e mat0emati's be'ome easier to re'on'ile <it0 'ommer'ial
realit$8 T0e ;alue o% t0e nine a5artments re%erre) to in t0e lan) re1ister* 1oin1 on
t0eir sale 5ri'e in t0e 2007 bro'0ure rat0er t0an t0eir ;alue in t0e lan) re1ister* 'omes
to L282m8 T0at 5uts a ;alue o% L>"82m (i8e8 L5>8"m less L282m) on t0e "7 a5artments
retaine) b$ ,u:a8 +@ul?s 'ommission on t0e sale o% t0ose "7 a5artments <oul) be
L-87m* i8e8 15K o% L>"82m8 4% t0at is a))e) to t0e L282m* +@ul 1ets L1785m* <0i'0 is
not t0at %ar %rom t0e 'osts o% L98"m* <0i'0 it 0a) in'urre) b$ t0e be1innin1 o% 2007
a''or)in1 to t0e bro'0ure 1i;en to .r Cen$on8 (imilarl$* on'e ,u:a 0a) 5ai)
'ommission o% L-87m on t0e "7 a5artments it <oul) be retainin1* t0e net sale 5ri'e o%
t0e "7 units <oul) be L>187m* a1ainst <0i'0 t0e borro<in1s o% L2>8>m <oul) lea;e
,u:a <it0 a 0ealt0ier 5ro%it o% L1289m* less t0e interest 5a$able on t0e borro<in1s8
798 +@ul?s sale o% t0e lan) to ,u:a <as %ollo<e) b$ ,u:a?s 1reater in;ol;ement in #.=?s
)e;elo5ments8 B$ t0e time .r Clar9e sto55e) <or9in1 %or #.=* it 0a) be1un to
tra)e* so 0e sai)* un)er t0e name o% #o$al ,u:a =rou58 4n)ee)* .r Cor)ner <as to
tell one o% t0e 'laimants* .r Bar9le$* to<ar)s t0e en) o% 2002 t0at ,u:a 0a) bou10t
.r Hone?s interest in #.=8 But +@ul?s sale o% t0e lan) to ,u:a raises t0e Auestion o%
<0et0er .r Hone an) #.= <ere initiall$ inten)in1 to )e;elo5 t0e site* or <0et0er it
<as a s'am %rom t0e ;er$ be1innin1* <it0 t0e 2007 bro'0ure bein1 use) to brin1
5otential in;estors in* <it0 .r Hone 5lannin1 to )isa55ear (as 0e e;entuall$ )i))
<0en in;estors be1an to realise t0at t0e$ 0a) been 'onne) into 5a$in1 t0e <0ole o%
t0e 5ur'0ase 5ri'e %or t0eir a5artments u5 %ront8 T0at is not somet0in1 <0i'0 t0e
e;i)en'e enables me to )e'i)e* an) 4 0a;e 0a) to 5ro'ee) on t0e assum5tion t0at at
t0e be1innin1 at an$ rate +@ul?s 5lan <as to )e;elo5 t0e site t0rou10 #.=* an) t0at it
<as at some time to<ar)s t0e en) o% 2007 t0at t0e 5lan '0an1e)8
>08 The re%uirements of &panish la'8 Be%ore 'omin1 to t0e 'ir'umstan'es in <0i'0 t0e
'laimants a'Auire) t0eir a5artments at +lo0a #o$al* it is ne'essar$ to sa$ somet0in1
about <0at (5anis0 la< )oes to 5rote't 5ur'0asers <0o bu$ 5ro5erties in (5ain o%%/
5lan8 T0e un'0allen1e) e;i)en'e o% #ebe''a Cettell* a soli'itor <it0 eD5ertise in
(5anis0 la<* is t0at su'0 5rote'tion is 5ro;i)e) b$ a< 5- o% 192" an) ta9es t<o
%orms: 1uarantees an) se5arate ban9 a''ounts8
>18 +rt8 1 o% a< 5- o% 192" reAuires an$one <0o 5romotes t0e 'onstru'tion o%
resi)ential 5ro5ert$ an) <0o re'ei;es %un)s on a''ount %rom t0e 5ur'0aser to arran1e
%or t0ere to be a 1uarantee in 5la'e to se'ure t0e return o% t0ose %un)s to1et0er <it0
interest i% (a) t0e 'onstru'tion )oes not be1in or (b) t0e 'onstru'tion is not 'om5lete)
b$ t0e a1ree) )ate %or 'om5letion8 T0is 1uarantee ma$ be in t0e %orm o% an insuran'e
5oli'$ <it0 an aut0orise) insurer or a 1uarantee %rom a re1istere) ban9 or sa;in1s
ban98 T0e insuran'e 5oli'$ or 1uarantee must be in)i;i)ual to t0e 5ur'0aser* an) it
must re%er to t0e amount 1uarantee)8 + 'olle'ti;e 1uarantee is not 5ermitte)8 +rt8 7
5ro;i)es t0at i% t0e 'onstru'tion o% t0e 5ro5ert$ is not 'om5lete) b$ t0e a1ree) )ate
%or 'om5letion* t0e 5ur'0aser 'an en%or'e t0e 1uarantee an) obtain t0e return o% t0eir
%un)s to1et0er <it0 interest or a1ree a ne< )ate %or 'om5letion8
>28 T0e 1uarantee remains ;ali) until t0e 1rant o% t0e 0abitation li'en'e relatin1 to t0e
5ro5ert$8 T0e 0abitation li'en'e is a li'en'e 1rante) b$ t0e lo'al aut0orit$ on
'om5letion o% t0e 'onstru'tion* 'on%irmin1 t0at t0e 'onstru'tion 'on%orms to an$
a55ro5riate buil)in1 re1ulations an) 5lannin1 'on)itions8 T0at means t0at on'e t0e
0abitation li'en'e 0as been 1rante)* t0e 1uarantee automati'all$ la5ses8 T0e e%%e't o%
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0at is t0at t0e 1uarantee )oes not relate to title at all8 + )e;elo5er is reAuire) to state
in its 5romotional material its obli1ation to 5ro;i)e a 1uarantee an) t0e entit$ t0rou10
<0i'0 t0e 1uarantee <ill be 1i;en8 4n a))ition* t0e terms o% t0e a1reement %or t0e
5ur'0ase o% t0e 5ro5ert$ 0a;e to re%er to t0e )e;elo5er?s obli1ation to 5ro;i)e su'0 a
1uarantee an) 0a;e to 1i;e s5e'i%ie) in%ormation about t0e 1uarantee8
>78 +s %or se5arate ban9 a''ounts* +rt8 1 o% a< 5- o% 192" reAuires a )e;elo5er to 5la'e
an$ %un)s re'ei;e) on a''ount %rom t0e 5ur'0aser o% a resi)ential 5ro5ert$ in a
)esi1nate) ban9 a''ount se5arate %rom an$ o% t0e )e;elo5er?s ot0er %un)s8 T0ose
%un)s ma$ onl$ be use) to %un) t0e 'onstru'tion o% t0e 5ro5ert$8
C. The claimants accounts
>>8 Ea'0 o% t0e 'laimants 0a;e t0eir o<n stor$ to tell8 T0eir a''ounts 0a;e a number o%
'ommon %eatures* but sin'e t0ere are some )i%%eren'es bet<een t0em* it is ne'essar$
to 'onsi)er t0eir ;ersions o% t0e rele;ant e;ents bot0 se5aratel$ an) to1et0er8 4t <as
in 2007 t0at +lo0a #o$al be1an to be mar9ete)* an) t0at is <0ere t0e 'laimants?
stories be1in8
>58 &ir Geoffs promotional agreement8 4n about &une 2007* (ir =eo%% <as in;ite) b$ a
t0eatri'al an) 5romotional a1ent to meet .r Hone8 (ir =eo%% a1ree) to )o so8 T0e
meetin1 too9 5la'e at #.=?s o%%i'e in ou10ton8 Bot0 .r Hone an) .r Cor)ner
<ere t0ere as <ell as a number o% ot0ers8 .r Hone )i) not a55ear to (ir =eo%% at t0e
time to be Ht0e main 5la$erI* an) none o% t0ose 5resent stoo) out as bein1 t0e one
runnin1 t0e business8 (ir =eo%% <as tol) about #.=?s ;arious )e;elo5ments* an) 0e
<as s0o<n 5romotional literature as <ell as 5lans an) )ra<in1s8 He t0ou10t t0at .r
Hone an) .r Cor)ner <ere im5ressi;e in t0e <a$ t0e$ 'ame a'ross* an) t0e$ seeme)
to 0im to 9no< <0at t0e$ <ere tal9in1 about8 T0e u5s0ot <as t0at (ir =eo%% <as
as9e) b$ .r Hone i% 0e <oul) 'onsi)er enterin1 into a 5romotional a1reement <it0
#.=8
>28 3ollo<in1 t0is meetin1* (ir =eo%% )e'i)e) to 5romote #.=?s )e;elo5ments* an) an
a1reement <as )ra<n u58 4t <as 'alle) an Hima1e ri10ts an) 5ersonal a55earan'e
'ontra'tI8 T0e 5arties to it <ere (ir =eo%% an) an entit$ 'alle) #o$al .arbella =rou5
(* <0i'0 <as ob;iousl$ inten)e) to be #.=8 Jn)er its terms* (ir =eo%% <as to
ma9e a total o% 15 5ersonal a55earan'es an) en)orse #.=?s )e;elo5ments b$
allo<in1 0is name an) ima1e to be use)8 4n return* 0e <as to be assi1ne) Ht0e
outri10t %ree0ol) titleI o% an a5artment in one o% #.=?s )e;elo5ments on t0e Costa
)el (ol* <0i'0 0a) a mar9et 5ri'e o% at least L770*000 at t0e )ate o% t0e a1reement8
T0e a1reement ran %rom 1" &une 2007 to 71 ,e'ember 2002* an) it 5ro;i)e) t0at t0e
'onstru'tion o% t0e a5artment <oul) be 'om5lete) b$ t0e time t0e a1reement eD5ire)*
unless t0e 5arties a1ree) a later )ate o% 'om5letion8 T0e a1reement <as si1ne) b$ (ir
=eo%% an) b$ .r Hone %or #.=8
>-8 (ir =eo%% as9e) %or t0e a5artment to <0i'0 0e <as entitle) to be at +lo0a #o$al sin'e
0e 0a) been 5arti'ularl$ im5resse) <it0 t0e 5lans %or t0at )e;elo5ment <0en 0e 0a)
seen t0em an) 0a) been tol) t0at its 'onstru'tion <oul) ta9e about 1" mont0s8 T0is
in%ormation be'ame im5ortant to (ir =eo%% <0en 0e be1an in;estin1 in +lo0a #o$al
0imsel% later on8 He sa$s t0at 0e t0ou10t t0at 1" mont0s <as about t0e ri10t time %or
t0e 'onstru'tion o% t0e )e;elo5ment to ta9e* an) it meant t0at 0is in;estment 'oul) be
re'ou5e) <it0in a reasonable time8 4n )ue 'ourse* 0e <as assi1ne) no8 20 +lo0a
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
#o$al8 + letter )ate) 25 &une 2007 'on%irmin1 t0at %rom .r #o'9all s0o<e) t0at t0e
H'urrent retail ;alueI o% t0e a5artment <as L>->*"00 (<0i'0 a''or)e) to t0e list 5ri'e
%or t0e a5artment in t0e 2007 bro'0ure)* but t0at it <as bein1 Hsol)I to (ir =eo%% at
L29"*0008 4t is un'lear <0at t0at <as meant to 'on;e$ to (ir =eo%% sin'e 0e <as not
Hbu$in1I t0e a5artment at all* but <0at it rat0er su11ests is t0at (ir =eo%% <as 1ettin1
one o% t0e 10 a5artments <0i'0 <ere bein1 mar9ete) at a s5e'iall$ )is'ounte) 5ri'e8
>"8 3ollo<in1 t0e si1nin1 o% t0is a1reement* (ir =eo%% met .r Hone an) .r Cor)ner a
number o% times bot0 in t0e JC an) in (5ain8 T0e im5ression 0e 0a) 1ot b$ t0en
<as t0at .r Hone <as Ht0e bossI* an) t0at 0e o<ne) most or all o% t0e business*
t0ou10 0is re'olle'tion <as t0at .r Cor)ner )es'ribe) 0imsel% as Ht0e '0airmanI8 +s
time <ent b$* (ir =eo%% 0a) little to )o <it0 .r Cor)ner* be'ause .r Cor)ner <as not
in;ol;e) <it0 t0e 50oto1ra50i' s0oots %or #.=?s bro'0ure or <it0 (ir =eo%%?s
5ersonal a55earan'es8 T0at <as more t0e res5onsibilit$ o% .r #o'9all8 +n)
alt0ou10 (ir =eo%% is not 5re5are) to )es'ribe .r Hone as a %rien) o% 0is* 0e
so'ialise) <it0 0im o''asionall$* i% onl$ be'ause 0e li9es to %orm a bon) <it0 5eo5le
0e )oes business <it08
>98 +lt0ou10 (ir =eo%% 1a;e no e;i)en'e about it* 0e must 0a;e mentione) mu'0 o% t0is
to .r Ho5le$ <0o <as a %rien) o% 0is8 .r Ho5le$ re'alls (ir =eo%% tellin1 0im about
t0e a55roa'0 0e 0a) 0a) %rom t0e t0eatri'al an) 5romotional a1ent <it0 a ;ie< to 0im
)oin1 some 5romotional <or9 %or #.=* an) about 0o< 0e 0a) met .r Hone an) .r
Cor)ner8 .r Ho5le$ remembers (ir =eo%% tellin1 0im t0at t0e a5artment 0e <as
bein1 o%%ere) %or t0e 5romotional <or9 0e <as bein1 as9e) to )o %or #.= <as 1oin1
to be o% a ;er$ substantial ;alue8 (ir =eo%% tol) 0im t0at 0is im5ression o% .r Hone
an) .r Cor)ner <as t0at t0e$ <ere eDtremel$ <ealt0$* an) 0a) )e;elo5e) some o%
t0e most 5resti1ious 5ro5erties on t0e Costa )el (ol8 .r Ho5le$ sa$s t0at 0e
su11este) to (ir =eo%% t0at 0e ou10t to '0e'9 #.= out be%ore be'omin1 its
Hambassa)orI* an) t0at t0e$ s0oul) 1o to .arbella to1et0er to loo9 at some o% #.=?s
)e;elo5ments8
508 T0at is <0at t0e$ )i)8 T0at <as <0en .r Ho5le$ %irst met .r Cor)ner* <0o .r
Ho5le$ sa$s intro)u'e) 0imsel% as '0airman o% #.=8 T0e$ <ere s0o<n a number o%
'om5lete) )e;elo5ments <0i'0 <ere o''u5ie)* as <ell as some sites <0i'0 0a) not
$et been )e;elo5e)8 (ir =eo%% <as to sa$ t0at it <as .r Cor)ner <0o s0o<e) t0em
aroun) (e;en t0ou10 0e <as Auote) in one o% #.=?s bro'0ures as sa$in1 t0at it 0a)
been .r Hone <0o 0a) )one t0at)* an) t0at <0en 0e %irst sa< t0e 'om5lete)
)e;elo5ments* <0i'0 .r Cor)ner sai) <ere #.= )e;elo5ments* t0e$ a55eare) to be
<ell 'onstru'te)* an) t0at le) 0im to belie;e t0at t0e sites <0i'0 0a) not been
)e;elo5e) (in'lu)in1 t0e site at +lo0a #o$al <0i'0 .r Cor)ner tol) 0im 0a) been
bou10t b$ #.= %or )e;elo5ment) <oul) be to a 0i10 stan)ar)8 3or 0is 5art* .r
Ho5le$ sa$s t0at t0ere <as not0in1 <0i'0 a'tuall$ sai) t0at t0ese 'om5lete)
)e;elo5ments <ere #.=?s )e;elo5ments8 .r Cor)ner sim5l$ sai) t0at 0e 0a) been
asso'iate) <it0 t0em* an) t0at t0e$ 0a) all been mar9ete) in t0e same <a$ an) 0a)
ma)e substantial returns8 T0e$ <ere also s0o<n t0e sites at +lo0a #o$al an) +l)ea
Bea'08 T0ese 0a) not been )e;elo5e)8 No <or9 <as 1oin1 on at +l)ea Bea'0*
alt0ou10 some 1roun) 5re5aration <or9 <as bein1 'arrie) out at +lo0a #o$al8 .r
Ho5le$ )i) not see an$ si1na1e at +lo0a #o$al <0i'0 s0o<e) t0at it <as 5art o%
#.=8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
518 +''or)in1 to .r Ho5le$* .r Cor)ner sai) t0at t0e sites at +lo0a #o$al an) +l)ea
Bea'0 0a) been bou10t b$ #.=8 T0at <as o% si1ni%i'an'e to .r Ho5le$8 4% 0e 0a)
been tol) t0at t0e sites <ere o<ne) b$ ot0ers* 0e <oul) 0a;e <ante) to 9no< b$
<0om* an) 0e <oul) 0a;e <ante) to meet t0em8 .r Cor)ner a))e) t0at <or9 <oul)
be1in on t0e )e;elo5ment o% t0ese sites s0ortl$8 He sai) t0at all t0e a5artments on
t0ese sites 0a) been sol) o%%/5lan to 1rou5s o% in;estors <0o <ere 1oin1 to sell t0e
a5artments <0en t0eir 'onstru'tion 0a) rea'0e) roo%/le;el8 .r Cor)ner sai) t0at
t0ere <ere no a5artments on t0ese )e;elo5ments a;ailable8 +1ain* (ir =eo%% 1a;e no
e;i)en'e o% a 'on;ersation o% t0is 9in) <0en 0e %irst <ent to ;ie< t0e )e;elo5ments
in (5ain (<0i'0 0e sa$s <as a%ter 0e si1ne) t0e a1reement)* but <it0out bein1 'riti'al
o% (ir =eo%% in an$ <a$* 4 t0ou10t t0at .r Ho5le$ 0a) a 'learer re'olle'tion o% e;ents
t0an 0im* an) 0a) in a number o% res5e'ts a better 1ri5 on t0e )etail8 4 t0in9 it more
li9el$ t0an not t0at t0ese e;ents o''urre) be%ore (ir =eo%% si1ne) t0e a1reement8
+%ter all* it too9 a little <0ile %or t0e a1reement to be si1ne)8 +lt0ou10 t0e
a1reement )oes not in'lu)e t0e )ate <0en (ir =eo%% si1ne) it* it in'lu)es t0e )ate
<0en .r Hone si1ne) it (15 &ul$ 2007)* t0ou10 t0is itsel% ma$ not be a''urate
be'ause .r #o'9all* <0o 5ur5orte) to <itness .r Hone?s si1nature* si1ne) t0e
a1reement as su'0 a <itness on 11 &ul$ 20078 .oreo;er* it is 5lain t0at t0e
a1reement 0a) not been )ra<n u5 b$ t0e time o% .r #o'9all?s letter o% 25 &une 2007
be'ause t0at re%erre) to .r Hone 0a;in1 H5ut t0e le1al <0eels in motionI8
528 &ir Geoffs purchase 'ith Mr Hople( of no. )# Aloha Ro(al8 (ir =eo%%?s e;i)en'e
<as t0at to<ar)s t0e en) o% &ul$ or t0e be1innin1 o% +u1ust 2007* .r Cor)ner as9e)
0im i% 0e <as intereste) in bu$in1 anot0er a5artment at +lo0a #o$al8 (ir =eo%%?s
re'olle'tion is t0at <0at .r Cor)ner tol) 0im <as t0at 0e 0a) bou10t 10 a5artments in
t0e )e;elo5ment 0imsel% %rom .r Hone at a 5re/sales laun'0* an) <as able to Hsell
t0em onI at a 0ea;il$ )is'ounte) 5ri'e8 .r Cor)ner ma$ not 0a;e a'tuall$ use) t0e
<or) Hbou10tI* but t0at <as <0at (ir =eo%% un)erstoo) .r Cor)ner to mean8 .r
Cor)ner s0o<e) (ir =eo%% t0e list 5ri'es %or t0e a5artments at +lo0a #o$al* an) tol)
(ir =eo%% t0at t0e ones 0e 0a) <ere t0e ones <it0 a list 5ri'e o% L>->*"00* but <0i'0
0e 'oul) sell %or L29"*000* 5ro;i)e) t0at (ir =eo%% <as 5re5are) to 5a$ t0e <0ole o%
t0e 5ur'0ase 5ri'e u5 %ront8 .r Cor)ner tol) 0im t0at <0en t0e a5artments <ere
built t0e$ <oul) sell %or L250*000/L-00*0008 T0at soun)e) Habout ri10tI to (ir
=eo%%8
578 3or 0is 5art* .r Ho5le$?s e;i)en'e <as t0at some time a%ter 0is tri5 to (5ain <it0 (ir
=eo%%* 0e 1ot a tele50one 'all %rom .r Cor)ner8 .r Cor)ner 0a) 'ome a'ross to 0im
b$ t0en as an in%luential businessman <it0 'onsi)erable eD5erien'e o% 5ro5erties in
t0e area8 .r Cor)ner 0a) sai) t0at 0e 0a) <or9e) %or #.= %or man$ $ears* an) .r
Ho5le$ sa$s t0at 0e t0ou10t t0at .r Cor)ner <as t0e man at t0e to58 W0at .r
Cor)ner 0a) tol) 0im <as t0at 0e 0a) Hta9enI 10 a5artments at +lo0a #o$al %or 0is
%amil$ (in'lu)in1 one %or 0is mot0er an) %at0er)* but t0at one o% t0e sales 0a) %allen
t0rou108 He <as t0ere%ore 5re5are) to o%%er it to (ir =eo%% an) 0im8 .r Cor)ner )i)
not sa$ 0o< 0e 0a) ta9en t0e 10 a5artments %or 0is %amil$ G <0et0er 0e 0a) bou10t
t0em or reser;e) t0em or <0ate;er8 .r Cor)ner a))e) t0at t0e <0ole o% t0e 5ur'0ase
5ri'e <oul) 0a;e to be 5ai) u5 %ront* but t0e$ 'oul) eD5e't a substantial return on
t0eir in;estment <0en t0e )e;elo5ment rea'0e) roo% le;el as t0e$ <oul) be 1ettin1
t0e a5artment at a 0ea;il$ )is'ounte) 5ri'e8 +t some sta1e G .r Ho5le$ )i) not sa$
<0en G 0e must 0a;e been tol) about t0e list 5ri'e o% L>->*"00* an) t0e )is'ounte)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
5ri'e o% L29"*000 <0i'0 t0e$ <oul) 0a;e to 5a$8 He <as not so sure t0at it <oul)
sell %or L>->*"00 <0en it <as laun'0e)* but 0e 'onsi)ere) L29"*000 to be a %air 5ri'e8
5>8 .r Ho5le$ sa$s t0at %ollo<in1 t0is 'on;ersation 0e re'ei;e) a number o% %urt0er 'alls
%rom .r Cor)ner about t0e 5ur'0ase o% t0e a5artment8 He also met .r Cor)ner
alon1 <it0 (ir =eo%%8 .r Ho5le$ sa$s t0at .r Cor)ner sai) t0at 0e 0a) 5re;iousl$
in;este) in 10 a5artments at +lo0a #o$al* an) t0at t0e returns <ere 1uarantee)8 .r
Ho5le$ treate) t0at latter 'omment as merel$ .r Cor)ner?s ;ie< o% t0e li9eli0oo) o% a
substantial return on t0eir in;estment* sin'e 0e 9ne< t0at t0e returns 'oul) not be
1uarantee)8 But 0e sa$s t0at 0e <as in%luen'e) b$ .r Cor)ner?s 'omment t0at #.=
<as lu'9$ to 0a;e (ir =eo%% on boar): t0at 1a;e .r Ho5le$ a measure o% 'on%i)en'e*
be'ause 0e )i) not t0in9 t0at an$one <oul) tr$ to ri5 (ir =eo%% o%%8 He also re'alls
.r Cor)ner tellin1 0im t0at t0e mone$ t0e$ 5ai) 0a) to be 9e5t in a totall$ se5arate
a''ount* an) t0at it <as 0is* .r Cor)ner?s* res5onsibilit$ to ensure t0at t0e mone$
<as use) %or <0at it <as su55ose) to be use) %or8 T0at a''or)e) <it0 .r Ho5le$?s
5re;ious eD5erien'e o% bu$in1 5ro5erties o%%/5lan: t0e %un)s <ere 9e5t in a se5arate
a''ount an) release) in sta1e 5a$ments8
558 (ir =eo%% an) .r Ho5le$ bot0 re'all <0at .r Cor)ner tol) t0em about t0e
in;ol;ement o% la<$ers in t0e 5ur'0ase8 (ir =eo%% sa$s t0at .r Cor)ner tol) 0im t0at
#.=?s Hin/0ouse la<$erI 'oul) )eal <it0 all t0e le1al <or9 on t0eir be0al%8 He
realise) t0at 0e 'oul) 0a;e instru'te) (5anis0 la<$ers 0imsel% i% 0e 0a) <ante) to* but
0e t0ou10t t0at it ma)e more sense to use #.=?s la<$ers sin'e t0e$ <ere in/0ouse8
.r Ho5le$?s e;i)en'e <as to similar e%%e't8 He re'alls .r Cor)ner tellin1 0im not to
bot0er about obtainin1 in)e5en)ent le1al a);i'e be'ause 0e* .r Cor)ner* <oul)
arran1e %or t0at on t0eir be0al%8 .r Cor)ner sai) t0at t0e$ 0a) )one it man$ times
be%ore on ot0er )e;elo5ments usin1 a %irm 'alle) (5anis0 e1al (er;i'es8 .r
Ho5le$ 0a) instru'te) la<$ers 0imsel% <0en 0e 0a) bou10t 5ro5erties in t0e 5ast G
sometimes la<$ers re'ommen)e) b$ t0e ;en)ors G an) 0e t0ou10t t0at t0e la<$ers
<0o .r Cor)ner <oul) be usin1 <oul) ma9e t0e a55ro5riate sear'0es to '0e'9 t0at
t0e ;en)or 0a) t0e ri10t to sell t0e a5artment to t0em an) <oul) )ra< u5 t0e 'ontra't
o% sale8 Ha) 0e 9no<n t0at .r Cor)ner 0a) no intention o% 1ettin1 t0at sort o% a);i'e
%or 0im* 0e <oul) 0a;e instru'te) la<$ers 0imsel%8 (5anis0 e1al (er;i'es <as t0e
st$le un)er <0i'0 a la<$er name) ($l;ia Cam5aRa 5ra'tise)* an) <0at none o% t0e
'laimants 9ne< <as t0at s0e <as #.=?s la<$er8 4n)ee)* s0e 0a) a )es9 at one o%
#.=?s t<o o%%i'es in 6uerto Banus8
528 (ir =eo%% re%erre) to one ot0er t0in1 <0i'0 0e 'laims .r Cor)ner tol) 0im8 (ir =eo%%
<as a<are t0at <0en $ou 5a$ %or a 5ro5ert$ <0i'0 $ou are bu$in1 o%%/5lan* t0ere
s0oul) be some me'0anism in 5la'e %or $our mone$ to be 5rote'te)8 W0en 0e
)is'usse) t0at <it0 .r Cor)ner* .r Cor)ner tol) 0im t0at t0e mone$ <oul) be 0el) in
an es'ro< a''ount <it0 t0e ban9* an) <oul) be release) in sta1es as t0e 'onstru'tion
rea'0e) t0e %irst an) se'on) store$s8 4% t0e )e;elo5ment <as not 'om5lete)* t0e ban9
<oul) return t0e mone$8 (ir =eo%% <as a little im5re'ise about <0en .r Cor)ner
tol) 0im t0at8 4t is unli9el$ t0at it <oul) 0a;e been at t0e time o% t0e 5romotional
a1reement* sin'e t0is <as in%ormation <0i'0 onl$ someone <0o <as 5uttin1 u5 %un)s
%or t0e a'Auisition o% a unit at +lo0a #o$al <oul) nee) to 9no<8 But it must 0a;e
been at some time be%ore (ir =eo%% )e'i)e) to in;est in +lo0a #o$al 0imsel%* be'ause
0e 'laims t0at t0is assuran'e about <0at <oul) 0a55en to 0is mone$ in%luen'e) 0is
)e'ision* an) 0e <oul) not 0a;e 5ro'ee)e) ot0er<ise as 0e <oul) not 0a;e re1ar)e)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
0is in;estment as su%%i'ientl$ sa%e8 4t is to be note)* t0ou10* t0at (ir =eo%% re%erre) to
t0is %eature o% <0at .r Cor)ner 0a) tol) 0im onl$ in 0is %ourt0 an) %inal <itness
statement* <0i'0 <as <ron1l$ )es'ribe) as 0is %i%t0 <itness statement8 4t <as ma)e a
'ou5le o% mont0s be%ore t0e trial be1an* an) as <e s0all see* (ir =eo%% <as not alone
amon1 t0e 'laimants in 0a;in1 re'alle) somet0in1 alon1 t0ese lines onl$ at a late
sta1e8
5-8 (ir =eo%% an) .r Ho5le$ )e'i)e) to bu$ t0e a5artment <0i'0 .r Cor)ner 0a) o%%ere)
t0em8 4t <as no8 90 +lo0a #o$al8 T0e$ ea'0 5ai) t0eir s0are o% t0e 5ur'0ase 5ri'e
b$ a '0eAue %or t0e sterlin1 eAui;alent o% 0al% o% L29"*0008 T0e$ ma)e t0eir '0eAues
5a$able to #.= be'ause t0at <as <0at .r Cor)ner 0a) as9e) t0em to )o8 .r
Cor)ner 0a) a);ise) t0em t0at it <oul) be taD/e%%i'ient i% t0e$ bou10t t0e a5artment
t0rou10 an o%%s0ore 'om5an$* an) 0e 5ut t0em in tou'0 <it0 Cli;e #ee) o% #ee)
.ana1ement t) in =ibraltar8 T0e 'om5an$ <0i'0 .r #ee) eit0er a'Auire) or
'ause) to be in'or5orate) %or t0at 5ur5ose <as Castlemore Hol)in1s t)* a 'om5an$
in'or5orate) in ,ela<are8 +lt0ou10 (ir =eo%%?s <itness statements )o not mention
it* it loo9s as i% (ir =eo%% si1ne) #.=?s stan)ar) 5ro5ert$ reser;ation s0eet at t0e
time* <0i'0 s0o<s t0at on 12 +u1ust 2007 no8 90 +lo0a #o$al <as reser;e) %or
0imsel% an) .r Ho5le$ in t0e name o% Castlemore Hol)in1s t)* an) t0at t0e
5ur'0ase 5ri'e o% L29"*000 <as 5ai) in %ull on 1" +u1ust 20078
5"8 (ir =eo%% an) .r Ho5le$ )i) not re'ei;e a 'ontra't o% sale at t0at sta1e8 +%ter a
<0ile* (ir =eo%% as9e) .r Cor)ner %or it8 W0en it arri;e)* it name) Wil'0ester as t0e
5romoter o% t0e lan) on <0i'0 t0e a5artment <as to be built8 +''or)in1 to .r
+1Qera* t0e 5romoter o% lan) un)er (5anis0 la< is t0e 5erson <0o o<ns t0e lan) an)
<0o a55lies %or an) obtains a buil)in1 li'en'e to )e;elo5 it8 (ir =eo%% noti'e) t0at
Wil'0ester <as name) as t0e 5romoter (eAuatin1 it* 4 t0in9* in 0is o<n min) <it0
;en)or)* an) t0at it 0a) been .r Hone <0o 0a) si1ne) t0e 'ontra't on be0al% o%
Wil'0ester8 +lt0ou10 (ir =eo%% 0a) been tol) t0at t0e a5artment <as one <0i'0 .r
Cor)ner 0a) bou10t* 0e )i) not 1i;e mu'0 t0ou10t to t0is a55arent in'onsisten'$ at
t0e time8 T0e same is true o% .r Ho5le$8 +lt0ou10 0e noti'e) t0at t0e 5romoter o%
t0e lan) <as Wil'0ester* 0e ima1ine) t0at be'ause t0e 'ontra't 0a) been )ra%te) b$
(5anis0 e1al (er;i'es t0ere must 0a;e been some reason %or t0at* an) 0e )i) not 1i;e
mu'0 t0ou10t to it at t0e time eit0er8 +5art %rom t0ose %a'ts* t0ere <as not0in1
unusual about t0e 'ontra't8 4t re'or)e) t0at Wil'0ester un)ertoo9 to 'om5lete t0e
'onstru'tion o% t0e a5artment b$ 70 .ar'0 2005* <it0 an a))itional 1ra'e 5erio) o%
t<o mont0s* an) it in'lu)e) t0e statement reAuire) b$ a< 5- o% 192" t0at Wil'0ester
<oul) H1uarantee t0e amounts 5ai) on a''ountI8 T0e 'ontra't <as unen%or'eable
until it 0a) been notarise) b$ a 5ubli' notar$* an) t0at <as <0en t0e )o'uments o%
1uarantee <ere to be )eli;ere) to (ir =eo%% an) .r Ho5le$8 No su'0 )o'uments
<ere e;er 5ro;i)e) to t0em* an) it )oes not loo9 as i% t0e 'ontra't <as e;er notarise)
be%ore a 5ubli' notar$8 T0at a55lie) to t0e ot0er 'laimants? 'ontra'ts as <ell8
598 +t no time )urin1 t0ese )is'ussions or t0erea%ter )i) .r Cor)ner e;er mention t0at 0e
<as entitle) to 'ommission on t0e sale o% t0e a5artment8 4t )i) not o''ur to .r
Ho5le$ t0at .r Cor)ner <oul) be re'ei;in1 'ommission8 +%ter all* t0is <as a %lat
<0i'0 0e 0a) bou10t an) <as sellin1 on8 Mou onl$ 1et 'ommission i% $ou sell
5ro5ert$ as an a1ent8 4n a))ition* 0e sa$s t0at 0e <oul) not 0a;e 1one a0ea) <it0 t0e
5ur'0ase i% 0e 0a) 9no<n 0o< mu'0 'ommission .r Cor)ner <as 1ettin18 He 0a)
ne;er 0ear) o% a salesman 1ettin1 nearl$ 70K o% t0e 5ri'e o% a Hne< buil)I8 (ir
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
=eo%%?s 5osition <as t0at it )i) not reall$ o''ur to 0im at t0e time G one <a$ o% t0e
ot0er G t0at .r Cor)ner mi10t be earnin1 an$ 'ommission* but loo9in1 ba'9 on t0in1s
no< t0at 0e 9no<s t0e 'ommission .r Cor)ner <as 1ettin1* 0e )oes not t0in9 t0at 0e
<oul) 0a;e bou10t t0e %lat8 +s 0e 5ut it* Ht0e %i1ures <oul)n?t 0a;e sta'9e) u5I8
208 4n t0e interests o% 'om5leteness* 4 s0oul) a)) t0at .r Ho5le$ sai) t0at i% 0e 0a) been
tol) t0at +lo0a #o$al 0a) not been Ha55ro;e)I* an) t0at Ht0e a55ro5riate )o'umentsI
<ere not in 5la'e* 0e <oul) not 0a;e in;este) in t0e )e;elo5ment8 4 am not Auite
sure <0at 0e meant b$ t0at* but 4 ta9e it t0at 0e <as sa$in1 t0at 0e 0a) assume) t0at
t0e o<ners o% t0e site at +lo0a #o$al 0a) been 1rante) t0e eAui;alent o% 5lannin1
5ermission to )e;elo5 it8 He a))e) t0at 0a) 0e been tol) ot0er<ise* 0e <oul) not
0a;e :oine) in t0e 5ur'0ase o% no8 908
218 .r Ho5le$ sa$s t0at 0e 'ame to ;ie< #.= in t0e same li10t as (ir =eo%% )i)8 He
<ent to t0e meetin1 at #o$al Win)sor ra'e'ourse s5onsore) b$ #.= in &une 200>*
<0i'0 <as <0en 0e sa< .r Hone %or t0e %irst time* t0ou10 0e )i) not s5ea9 to 0im
t0en* an) 0as not s5o9en to 0im sin'e8 But t0e e;ent ma)e #.= loo9 li9e a
'om5an$ o% substan'e8 .r Cor)ner <as )ri;in1 a Bentle$ Continental at t0e time*
an) tol) .r Ho5le$ t0at 0e 0a) Hman$ millions tie) u5 in (5anis0 )e;elo5mentsI8
228 &ir Geoffs purchase 'ith Mr *o'er of no. +# Aloha Ro(al8 +%ter (ir =eo%% an) .r
Ho5le$ a1ree) to 5ur'0ase no8 90 +lo0a #o$al* .r Cor)ner 'ontinue) to 5ress (ir
=eo%% to in;est in anot0er a5artment t0ere8 T0is time (ir =eo%% a55roa'0e) .r
6o<er* <0o 0e )es'ribes as a lon1/term business asso'iate an) %rien)* to see i% 0e
mi10t be intereste)8 T0e t<o o% t0em met .r Cor)ner at (el%ri)1es Hotel in on)on8
+t t0e meetin1* .r Cor)ner tol) t0em t0at t0e rest o% t0e 10 a5artments <ere sellin1
Aui'9l$* an) t0at some o% t0em 0a) been ta9en u5 b$ 0is %amil$ an) ot0ers8
3ollo<in1 t0at meetin1* (ir =eo%% an) .r 6o<er )e'i)e) to 5ur'0ase anot0er o% t0e
10 a5artments at +lo0a #o$al at t0e )is'ounte) 5ri'e o% L29"*000 t0rou10 anot0er
'om5an$ a'Auire) or set u5 b$ .r #ee)* W0ite'0a5el 4n;estments 4n'
(HW0ite'0a5elI)* anot0er 'om5an$ in'or5orate) in ,ela<are8 .r 6o<er is not one
o% t0e 'laimants8 He )e'i)e) not to :oin t0e a'tion* sa$s (ir =eo%%* be'ause H0e )i)n?t
<ant to t0ro< 1oo) mone$ a%ter ba)I8
278 .r Cor)ner 5ro;i)e) t0em <it0 a )ra%t o% t0e 'ontra't o% sale* an) .r 6o<er sent it to
0is soli'itors8 His 'o;erin1 letter re%erre) to <0at .r Cor)ner 0a) tol) 0im <0en
t0e$ 0a) met* <0i'0 <as t0at 0e %elt sure t0at <0en t0e a5artment <as 'om5lete) in
earl$ 2005* it <oul) be <ort0 in t0e re1ion o% L-00*0008 He also re%erre) to (ir
=eo%%?s o<n in;ol;ement <it0 #.= an) t0e 5ro5ert$ 0e 0a) alrea)$ 5ur'0ase) at
+lo0a #o$al G t0in1s <0i'0 1a;e 0im 'on%i)en'e about t0e )eal8 Fne o% t0e
Auestions <0i'0 .r 6o<er <ante) ans<ere) <as 0o< it 0a) 'ome about t0at t0e$
<ere bein1 o%%ere) t0e a5artment at su'0 a si1ni%i'ant )is'ount %rom <0at .r 6o<er
)es'ribe) as t0e H[s]ellin1 5ri'e on o5en mar9etI o% L>->*"008 T0at Auestion amon1
ot0ers <as rela$e) to .r Cor)ner b$ .r 6o<er?s soli'itors* an) on 22 No;ember
2007 .r Cor)ner re5lie) to t0at Auestion as %ollo<s:
H4 0a) alrea)$ a1ree) <it0 t0e )e;elo5er to 5ur'0ase t0e %irst
10 5ro5erties at a S5re laun'0? 5ri'e o% L29"*000* at laun'0 t0e
5ri'e o% 5ro5erties %or t0is )e;elo5ment <as L>->*"008 T0is is
no< t0e last 5ro5ert$ a;ailable at t0is re)u'e) 5ri'e8I
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
+ 'o5$ o% t0at letter <as sent to (ir =eo%%8
2>8 4t is un'lear <0at e%%e't t0at letter 0a) on (ir =eo%%?s )e'ision to 1o a0ea) <it0 t0e
5ur'0ase8 His <itness statement is silent on t0e 5oint* an) 0e <as not as9e) about it
<0en 0e 1a;e e;i)en'e8 But it ob;iousl$ satis%ie) .r 6o<er be'ause b$ 5 ,e'ember
2007 #.=?s stan)ar) 5ro5ert$ reser;ation s0eet 0a) been 'om5lete) s0o<in1 t0at no8
20 +lo0a #o$al 0a) been reser;e) %or t0em8 4t re'or)e) t0at t0e 5ur'0ase 5ri'e o%
L29"*000 0a) been 5ai) in %ull8 4n %a't it <as 5ai) b$ .r 6o<er?s soli'itors remittin1
B211*7>-800* <0i'0 <as t0e sterlin1 eAui;alent o% L29"*000 at an eD'0an1e rate o%
B1800 to L18>1* to #.=?s a''ount at Ban'o )e (aba)ell* an) (ir =eo%% 1a;e .r
6o<er a '0eAue %or 0al% o% t0at amount8 T0e %ormal 'ontra't o% sale G <0i'0 <as
)ate) 21 +5ril 200> G <as in t0e same %orm as t0e 'ontra't o% sale relatin1 to no8 90
+lo0a #o$al* eD'e5t t0at on t0is o''asion bot0 Wil'0ester an) =ros;enor <ere name)
as t0e 5romoters o% t0e lan) on <0i'0 t0e a5artment <as to be built8 .r Hone si1ne)
t0e 'ontra't on be0al% o% Wil'0ester an) =ros;enor8
258 The loan of ,$-#.###8 +lt0ou10 (ir =eo%%?s 'laim relatin1 to t0e loan is in)e5en)ent
o% t0e a5artments <0i'0 t0e 'laimants <ere 5ersua)e) to bu$* it is an inte1ral 5art o%
t0e stor$* an) 4 5ro5ose to )eal <it0 (ir =eo%%?s a''ount o% t0e loan 0ere8 (ir =eo%%?s
e;i)en'e <as t0at in about .a$ 200> .r Cor)ner tol) 0im t0at .r Hone ur1entl$
nee)e) a loan in 'onne'tion <it0 a )e;elo5ment in Teneri%e8 T0e amount .r Hone
<ante) to borro< %rom (ir =eo%% <as B750*000* an) in return (ir =eo%% <oul) be
re5ai) B595*000 b$ t0e en) o% ,e'ember 20058 .r Cor)ner tol) (ir =eo%% t0at t0e
reason <0$ t0e return <as to be so 0i10 <as t0at .r Hone <oul) be ma9in1 man$
more times t0at on t0e )e;elo5ment in Teneri%e8 .r Cor)ner 0a) a55roa'0e) .r
Ho5le$ as <ell* an) (ir =eo%% <as un)er t0e im5ression t0at t0e return <as 1oin1 to
be as 0i10 as it <as be'ause t0e$ <ere t0e %irst 5eo5le <0o 0a) been a55roa'0e)8 He
'annot no< re'all <0at ma)e 0im t0in9 t0at* but 0e t0ou10t t0at it <as li9el$ to 0a;e
been somet0in1 <0i'0 .r Cor)ner 0a) sai) to 0im* be'ause %or t0e most 5art it <as
.r Cor)ner rat0er t0an .r Hone to <0om 0e <as s5ea9in1 about t0e 5ro5ose) )eal8
228 4n t0e 'ourse o% 0is 'on;ersations <it0 .r Cor)ner* (ir =eo%% re'alls .r Cor)ner
tellin1 0im t<o t0in1s o% si1ni%i'an'e8 3irst* .r Hone <oul) 5ro;i)e (ir =eo%% <it0
a 5ost/)ate) '0eAue %or t0e B595*0008 .r Cor)ner 'alle) su'0 a '0eAue a pagar/
(<0i'0 is (5anis0 %or an 4FJ or 5romissor$ note)* an) 0e sai) t0at it <oul) be 1oo)
se'urit$ %or t0e loan sin'e it <as a 'riminal o%%en'e in (5ain %or su'0 a '0eAue to be
)is0onoure) on 5resentation %or 5a$ment8 (e'on)l$* .r Cor)ner sai) t0at 0e <as
0imsel% len)in1 to<ar)s t0e B7m in all <0i'0 .r Hone <as tr$in1 to raise8 +t one
5oint in 0is e;i)en'e* (ir =eo%% a'tuall$ <ent so %ar as to sa$ t0at .r Cor)ner sai)
t0at 0e 0a) alrea)$ ma)e a loan to .r Hone in 'onne'tion <it0 t0e 5ro:e't* t0ou10
t0at <as ;er$ mu'0 an a%tert0ou10t on (ir =eo%%?s 5art* an) t0ere is no re%eren'e to
.r Cor)ner 0a;in1 sai) an$t0in1 about t0at in (ir =eo%%?s <itness statements8
2-8 T0ere ma$ 0a;e been ot0er t0in1s <0i'0 .r Cor)ner tol) (ir =eo%% <0i'0 (ir =eo%%
no lon1er re'alls* be'ause t0e$ <ere re%erre) to in an atten)an'e note <0i'0 0is
soli'itor* +lan (im5son o% +lan (im5son T Co* too9 <0en (ir =eo%% as9e) 0im %or
a);i'e about t0e 5ro5ose) )eal8 3or eDam5le* (ir =eo%% tol) .r (im5son t0at t0e
)e;elo5ment in Teneri%e <as one in <0i'0 .r Hone <as en1a1e) <it0 a 0otel 1rou5*
an) t0at t0e reason <0$ .r Hone nee)e) t0e B7m <as be'ause one o% .r Hone?s
%ormer 5artners 0a) <it0)ra<n %rom t0e 5ro:e't an) 0a) le%t 0im <it0 t0at s0ort%all8
W0en .r (im5son 0a) as9e) (ir =eo%% <0$ t0e %un)s <ere not bein1 raise) t0rou10
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
a ban9* (ir =eo%% tol) 0im t0at 0e 0a) been tol) t0at t0ere 0a) not been time to
arran1e t0e %inan'e in t0at <a$8 Ho<e;er* it is not 5ossible to sa$ <0et0er t0ese
'omments s0oul) be attribute) to .r Hone or .r Cor)ner* be'ause t0e atten)an'e
note )oes not re'or) (ir =eo%% sa$in1 <0o it <as <0o 0a) tol) 0im t0ese t0in1s8 (ir
=eo%%?s e;i)en'e <as t0at 0e <as 1ettin1 in%ormation %rom bot0 .r Hone an) .r
Cor)ner* t0ou10 most o% 0is 'on;ersations about t0e loan <ere <it0 .r Cor)ner8 He
sa$s t0at it <as not so mu'0 .r Hone <0o <as 5ressin1 0im to len) t0e mone$* but
rat0er it <as .r Cor)ner8
2"8 4t is unne'essar$ to )es'ribe all t0e 'orres5on)en'e an) atten)an'e notes <0i'0 .r
(im5son?s in;ol;ement 1enerate)* but sin'e it is im5ortant to see t0e eDtent to <0i'0
(ir =eo%% relie) on <0at 0e 0a) been tol) b$ .r Cor)ner* some re%eren'e to t0e
)o'uments is essential8 T0e$ s0o< a number o% t0in1s8 3irst* t0ere are t0e t0in1s
Mr Hone tol) .r (im5son about t0e )eal an) t0e se'urit$ 0e 'oul) o%%er %or t0e loan8
He tol) .r (im5son <0at .r Cor)ner 0a) tol) (ir =eo%% about t0e pagar/ an) <0at
its e%%e't <as* a))in1 t0at it <oul) be issue) b$ =ros;enor (<0i'0 0e )es'ribe) as an
in;estment 'om5an$ <0i'0 0e o<ne))8 T0en .r Hone tol) .r (im5son t0at 0e 0a)
arran1e) %or 0is s0are0ol)in1 in Wil'0ester to be lo)1e) <it0 (5anis0 e1al (er;i'es
<0o <oul) 0ol) it in es'ro< until re5a$ment 0a) been ma)e8 Wil'0ester* 0e sai)*
o<ne) 50K o% a 5rime )e;elo5ment site <0i'0 <as unen'umbere)* 0a) a ;alue o%
L1"m* an) H'om5rise) 92 )e;elo5ment unitsI8 He <as ob;iousl$ tal9in1 about
+lo0a #o$al8 .r Hone <ent on to tell .r (im5son t0at 0e <oul) arran1e %or t0e sale
o% an$ units on t0e site not to be a1ree) <it0out t0e 'onsent o% t0ose in;estin1 in t0e
site8 .r Hone also sai) t0at 0e 0a) raise) t0e <0ole o% t0e B7m 0e 0a) nee)e) in
'onne'tion <it0 t0e 5ro:e't in Teneri%e G in 5art b$ borro<in1 %rom 'om5anies in
<0i'0 0e 0a) an interest G an) 0e nee)e) a loan %rom (ir =eo%% in or)er to re5a$ t0at
borro<in18 3inall$* 0e sai) t0at (ir =eo%% (an) .r Ho5le$) <ere t0e onl$ 5eo5le <0o
<ere 1oin1 to 1et a return as 0i10 as -0K8 T0at <as be'ause 0e <ante) to 0onour t0e
o%%er <0i'0 0a) been ma)e to t0em8 +ll ot0er in;estors <ere to 1et a return o% 70/
75K on t0eir mone$8
298 (e'on)l$* .r (im5son <as eD5ressin1 ;er$ 'onsi)erable s'e5ti'ism to (ir =eo%%
about t0e <is)om o% (ir =eo%% 1oin1 a0ea) <it0 t0e )eal8 He )oubte) .r Hone?s
'laim t0at .r Hone 0a) raise) all t0e mone$ 0e nee)e)8 He t0ou10t it ;er$ unli9el$
t0at .r Hone <oul) 1i;e (ir =eo%% su'0 a 1oo) rate o% return <0en 0e 0a) mana1e)
to raise all t0e mone$ 0e nee)e) b$ 1i;in1 ot0er len)ers a lo<er le;el o% return8 He
<as 'on'erne) <0$ .r Hone <as not borro<in1 mone$ 'on;entionall$ %rom a ban9*
es5e'iall$ i% t0ere <as an unen'umbere) site <0i'0 'oul) be o%%ere) as se'urit$ %or
t0e borro<in18 Jnsur5risin1l$* .r (im5son a);ise) (ir =eo%% not to 5ro'ee) <it0
t0e )eal8 .r Hone?s a'9no<le)1ement t0at 0e nee)e) to o;er'ome 'on'erns o% t0is
9in) ma$ <ell 0a;e been be0in) an o%%er <0i'0 .r Hone ma)e to .r Ho5le$ %or
a))itional se'urit$ b$ <a$ o% a '0ar1e o;er an a5artment at +lo0a #o$al8 (ir =eo%%
sai) t0at .r Ho5le$ 0a) <ante) t0at a))itional se'urit$ a%ter tal9in1 to .r Cor)ner8
4n)ee)* one o% .r (im5son?s atten)an'e notes re'or)s (ir =eo%% tellin1 0im t0at 0e
an) .r Cor)ner 0a) 0ear) o% t0at o%%er* an) i% t0e$ <ere to len) .r Hone mone$
t0emsel;es t0e$ <ante) similar se'urit$8
-08 3or a ;ariet$ o% reasons* .r (im5son )i) not re1ar) t0is o%%er as ma9in1 (ir =eo%%?s
5osition more se'ure* an) 0e 'ontinue) to a);ise (ir =eo%% not to 1o a0ea)8 (ir =eo%%
note) .r (im5son?s unease* but )e'i)e) to 5ro'ee) <it0 t0e )eal ne;ert0eless8 4n t0e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
li10t o% t0at* .r Hone submitte) a )ra%t o% t0e 'ontra't %or t0e loan %or .r (im5son to
'onsi)er8 .r (im5son 5ointe) out to (ir =eo%% t0e <a$s in <0i'0 in 0is ;ie< t0e
'ontra't )i) not 1i;e (ir =eo%% t0e se'urit$ 0e nee)e)8 .r (im5son note) t0at t0e
'ontra't re'or)e) a''uratel$ <0at .r Hone 0a) tol) 0im about Wil'0ester 0a;in1 a
50K interest in t0e lan)* but one o% t0e t0in1s <0i'0 .r (im5son a);ise) (ir =eo%%
<as t0at (5anis0 la<$ers s0oul) be instru'te) to '0e'9 t0at Wil'0ester )i) in)ee)
0a;e title to t0e lan)8 He also in%orme) (ir =eo%% t0at .r Hone 0a) been in tou'0
<it0 0im on'e a1ain an) 0a) sai) t0at 0e no< 0a) in;estors rea)$ to in;est B"m in t0e
5ro:e't8
-18 Wit0in a )a$ or so* .r (im5son <as sent anot0er )ra%t 'ontra't <0i'0 sou10t to )eal
<it0 t0e a))itional se'urit$ <0i'0 (ir =eo%% an) .r Ho5le$ 0a) ea'0 sou10t8 4nstea)
o% a 'ontra't %or a loan* <0at <as no< 5ro5ose) <as a 'ontra't o% sale8 Jn)er (ir
=eo%%?s 0e <oul) bu$ no8 5- +lo0a #o$al %or B750*000 5a$able u5 %ront* an) .r
Hone 0a) t0e ri10t to bu$ t0e a5artment ba'9 %rom (ir =eo%% %or B595*000 at an$ time
<it0in 1" mont0s8 T0is <as ob;iousl$ unsatis%a'tor$* be'ause it 1a;e .r Hone t0e
o5tion o% sa))lin1 (ir =eo%% <it0 t0e a5artment instea) o% 5a$in1 0im B595*0008
W0en t0at <as 5ointe) out to .r Hone* 0e rea)il$ a1ree) to t0e 'ontra't bein1
re)ra%te) so t0at a%ter 1" mont0s (ir =eo%% 'oul) reAuire .r Hone to bu$ t0e
a5artment ba'9 at B595*0008 T0e 'ontra't o% sale <0i'0 .r Ho5le$ <as o%%ere) <as
in t0e same terms* t0ou10 it relate) to no8 21 +lo0a #o$al8 .r Ho5le$ )e'i)e) not to
1o a0ea) <it0 t0e )eal at all* an) 0e %alls out o% t0e 5i'ture8
-28 E;entuall$* t0ou10* (ir =eo%% )e'i)e) to 5ro'ee) on t0e basis o% t0e ori1inal )ra%t G
i8e8 a 'ontra't %or a loan rat0er t0an a 'ontra't o% sale G but t0e interestin1 %eature o%
t0e )ra%t 'ontra't o% sale is t0at it name) +@ul as t0e 5ro5rietor o% t0e lan)8 T0at <as
in'onsistent* o% 'ourse* <it0 t0e )ra%t 'ontra't %or t0e loan <0i'0 sai) t0at Wil'0ester
0a) a 50K interest in t0e lan)8 +@ul?s interest in t0e lan) 0a) not been ma)e 9no<n
to (ir =eo%% or .r Ho5le$ b$ t0en G or in)ee) to an$ o% t0e ot0er 'laimants* all o%
<0om 0a) 5ur'0ase) t0eir a5artments at +lo0a #o$al b$ t0en8 T0e 5romoter o% t0e
lan) 0a) 'onsistentl$ been )es'ribe) in t0eir 'ontra'ts o% sale as eit0er Wil'0ester or
=ros;enor8 But .r Hone 0a) little o5tion but to re;eal +@ul?s interest* be'ause 0e
0a) been reAuire) b$ .r (im5son to 5ro)u'e t0e lan) re1istr$ entries* <0i'0 0a)
s0o<n +@ul to be t0e re1istere) 5ro5rietor o% t0e lan)8
-78 T0ere <as one ot0er matter <0i'0 1a;e .r (im5son some )isAuiet8 +lt0ou10 .r
Hone 0a) tol) 0im t0at t0e lan) <as unen'umbere)* .r (im5son )is'o;ere) t0at it
<as sub:e't to a le1al '0ar1e G 5resumabl$ t0e one %or L1-9*2-98"0 <0i'0 0a) been
5a$able in ,e'ember 20078 W0en .r (im5son as9e) .r Hone about it* .r Hone
sai) t0at <0en 0e 0a) bou10t t0e lan) in 1995 it 0a) been sub:e't to a small '0ar1e*
but t0e rate o% interest on t0e loan to <0i'0 t0e '0ar1e relate) <as lo<8 He sai) t0at
t0e balan'e outstan)in1 on t0e loan <as about B-7*0008 (ir =eo%% <as tol) about t0at
G an) about +@ul bein1 t0e o<ner o% t0e lan)* not Wil'0ester G but it )i) not a%%e't 0is
)e'ision to 1o a0ea) <it0 t0e loan8
->8 +lt0ou10 (ir =eo%%?s e;i)en'e <as t0at it <as .r Cor)ner rat0er t0an .r Hone <0o
<as ma9in1 t0e runnin1* .r (im5son sa$s t0at t0e Hsales 5it'0I G to 0im at an$ rate G
'ame %rom .r Hone8 His 'on;ersations <it0 .r Cor)ner <ere about H5ro1ress
re5orts an) t0e se'urit$I8 He 9ne< t0at .r Cor)ner <as re5ortin1 ba'9 to .r Hone
<0at 0e tol) .r Cor)ner be'ause s0ortl$ a%ter<ar)s .r Hone <oul) 'all 0im to
)is'uss t0e t0in1s <0i'0 0e an) .r Cor)ner 0a) tal9e) about8 But t0ere <as one
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0in1 <0i'0 .r Cor)ner tol) .r (im5son <0i'0 <as 0i10l$ si1ni%i'ant8 W0en .r
(im5son mentione) to .r Cor)ner 0is )is'o;er$ t0at t0e lan) <as en'umbere)* 0e
as9e) .r Cor)ner <0$ .r Hone )i) not as9 t0e ban9 to len) 0im t0e mone$ 0e
<ante) a1ainst t0e se'urit$ o% t0e lan) sin'e t0e '0ar1e <as su'0 a small one8 .r
Cor)ner tol) 0im G an) 4 Auote %rom <0at 0e <as to sa$ in a letter 0e <rote to (ir
=eo%% s0ortl$ a%ter<ar)s G Ht0at .i'0ael Hone ne;er use) [b]an9s %or borro<in1I8
+s 4 s0all eD5lain later* t0at is more rele;ant to t0e 'laimants? 'laims about t0e
a5artments t0e$ bou10t8 4nterestin1l$* (ir =eo%% sa$s t0at .r Cor)ner tol) him t0at
.r Hone )i) not use ban9s* but a1ain 0e )i) not mention t0at until 0is %ourt0 an) %inal
<itness statement8
-58 T0e a1reement %or t0e loan <0i'0 <as e;entuall$ si1ne) <as )ate) 19 .a$ 200>8
T0e se'urit$ %or t0e loan in'lu)e) t0e pagar/ '0eAue %or B595*000 an) t0e )e5osit b$
.r Hone <it0 (5anis0 e1al (er;i'es o% 0is 100K s0are0ol)in1 in Wil'0ester8 4n
%a't* (5anis0 e1al (er;i'es ne;er 'on%irme) t0at it <as 0ol)in1 .r Hone?s s0ares in
Wil'0ester8 4t merel$ 'on%irme) in a )o'ument si1ne) b$ ($l;ia Cam5aRa t0at it <as
0ol)in1 Wil'0ester?s )ee) o% 'onstitution an) .r Hone?s 5o<er o% attorne$8 But t0e
pagar/ '0eAue %or B595*000 <as 5ro;i)e)* an) (ir =eo%%?s B750*000 <as remitte) G
5resumabl$ at .r Hone?s reAuest G to #.=?s a''ount at Ban'o )e (aba)ell8
6a$ment o% t0e B595*000 <as )ue 1" mont0s %rom <0en t0e B750*000 0a) been 5ai)8
(in'e it <as 5ai) b$ CH+6( trans%er on 22 .a$ 200>* t0e B595*000 0a) to be re5ai)
b$ 22 No;ember 20058
-28 4t <as not 5ai) b$ t0en8 (ir =eo%% <as un)er t0e im5ression t0at it <as 5a$able b$
t0e en) o% ,e'ember* but it <as not 5ai) b$ t0en eit0er8 .r Hone 9e5t on ma9in1
;arious eD'uses8 He sai) t0at 0e <as in;ol;e) in 'ourt 'ases 'on'ernin1 some o% 0is
)e;elo5ments8 +not0er time 0e sai) t0at 0e <as in;ol;e) in )i;or'e 5ro'ee)in1s8
E;entuall$* t0ou10* (ir =eo%% be1an to re'ei;e some 5a$ments %rom ;arious t0ir)
5arties8 B$ +u1ust 200-* 0e 0a) re'ei;e) a total o% B2>0*000* but 0e 0as re'ei;e)
not0in1 sin'e8 +t some sta1e* 0e 1ot in tou'0 <it0 .r Cor)ner* <0o tol) 0im t0at 0e*
.r Cor)ner* 0a) been re5ai) <0at 0e 0a) in;este)* alt0ou10 not in 'as0* but in
a5artments or lan)8
--8 4n t0e interests o% 'om5leteness* 4 s0oul) a)) t<o t0in1s8 T0e %irst relates to a
5arti'ular %eature o% t0e e;i)en'e <0i'0 is sai) to raise Auestions about (ir =eo%%?s
're)ibilit$8 + 'ou5le o% mont0s be%ore t0e B595*000 <as )ue to be 5ai)* (ir =eo%%
<rote to .r Hone8 He as9e) %or B7"5*000 (i8e8 t0e ori1inal B750*000 5lus 10K) to be
5ai) to 0is (an) 0is <i%e?s) ban9 a''ount in t0e JC* but %or t0e balan'e o% B210*000 to
be 5ai) into W0ite'0a5el?s a''ount at Ban'o (antan)er in 6uerto Banus8 T0e letter
in'lu)e) t0e senten'e: H.i'0ael* $ou )i) sa$ $ou <oul) 1i;e me a letter statin1 4 0a;e
ma)e :ust 10K interestI8 T0e su11estion <as ma)e t0at (ir =eo%% <as 5ro5osin1 to
a''ount to t0e #e;enue %or interest o% onl$ 10K* not -0K8 (ir =eo%% )enie) t0at8 He
sai) t0at 0e <ante) some o% t0e mone$ in an o%%s0ore a''ount so t0at 0e 'oul) in;est
it in ot0er 5ro5ert$ i% 0e '0ose to8 He <oul) be a''ountin1 to t0e #e;enue %or t0e
balan'e o% B210*000 <0en t0e mone$ <as e;entuall$ remitte) to t0e JC8
-"8 T0e se'on) is t0at (ir =eo%% an) .r Ho5le$ <ere not t0e onl$ 'laimants to 0a;e been
reAueste) to len) .r Hone mone$ in 'onne'tion <it0 t0e 5ro:e't in Teneri%e8 .r
Cen$on <as as9e) to as <ell8 4t <as .r Cor)ner <0o as9e) 0im to )o t0at8 .r
Cor)ner s0o<e) .r Cen$on a 'ontra't in t0e same %orm as t0e one <0i'0 (ir =eo%%
e;entuall$ si1ne) G an) )ate)* li9e (ir =eo%%?s* 19 .a$ 200> G but bet<een .r Hone
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
an) (te;e omas* a %ootballer <0o .r Cen$on 0a) 0ear) o%8 T0e 'ontra't <as
si1ne) b$ .r Hone* but not .r omas* an) un)er it .r omas 0a) a1ree) to len) .r
Hone B1m in return %or re5a$ment o% B185m 1" mont0s later8 .r Cor)ner tol) .r
Cen$on t0at 0e <oul) 1et eDa'tl$ t0e same )eal8 .r Cen$on )e'i)e) not to 1o
a0ea)8
-98 &ir Geoffs ac%uisition of no. "# Aloha Ro(al8 No8 20 +lo0a #o$al <as t0e a5artment
<0i'0 <as to be trans%erre) to (ir =eo%% un)er 0is 5romotional a1reement <it0 #.=8
But some time in 200> .r Hone su11este) t0at (ir =eo%% s0oul) instea) ta9e an
a5artment in +l)ea Bea'08 (in'e (ir =eo%% 0a) an interest in t<o ot0er a5artments at
+lo0a #o$al* .r Hone sai) t0at (ir =eo%% s0oul) not 9ee5 all 0is e11s in one bas9et8
(ir =eo%% too9 .r Hone?s a);i'e* an) a1ree) to ta9e no8 712 +l)ea Bea'0 instea)8
"08 4t <ill be re'alle) t0at (ir =eo%%?s 5romotional a1reement 0a) 5ro;i)e) t0at t0e
'onstru'tion o% t0e a5artment <0i'0 <oul) be trans%erre) to 0im <oul) be 'om5lete)
b$ t0e time t0e a1reement eD5ire) i8e8 b$ 71 ,e'ember 2002* unless t0e 5arties a1ree)
to a later )ate %or 'om5letion8 B$ t0e summer o% 2002* it 0a) be'ome a55arent to (ir
=eo%% t0at t0e )e;elo5ment at +l)ea Bea'0 'oul) not 5ro5erl$ be 'om5lete) b$ t0e
en) o% 20028 Constru'tion 0a) not e;en starte) t0en8 +lt0ou10 t0ere 0a) been some
)ela$ on t0e 'onstru'tion o% t0e )e;elo5ment at +lo0a #o$al* <or9 t0ere <as <ell
un)er <a$ b$ t0e summer o% 20028 (o on 2 +u1ust 2002 (ir =eo%% e/maile) .r
Hone* an) su11este) t0at t0e$ s<it'0 ba'9 to no8 20 +lo0a #o$al* t0at it be sol) an)
t0at 0e s0oul) t0en be 5ai) t0e list 5ri'e o% L>->*"008 +%ter a <0ile* .r Hone?s son
.i'0ael 1ot in tou'0 <it0 0im8 T0e$ met an) )is'usse) (ir =eo%%?s su11estion about
no8 20 +lo0a #o$al an) t0e 5a$ment o% t0e B595*000 <0i'0 <as imminentl$ )ue8
3ollo<in1 t0at meetin1* .i'0ael e/maile) (ir =eo%% sa$in1 t0at t0e H'ontra'tual
a1reement %or t0e 5ro5ert$ in +l)ea Bea'0 2 is bein1 loo9e) at* 4 <ill 0a;e an ans<er
on t0at soonI8 (ir =eo%% 0ear) not0in1 %urt0er* an) 0e 0as still not 0a) trans%erre) to
0im an$ a5artment un)er t0e 5romotional a1reement* nor t0e 5ro'ee)s o% sale o% an$
a5artment8
"18 Mr Innocents purchase of no. +" Aloha Ro(al8 4 )eal neDt <it0 .r 4nno'ent* be'ause
0e <as t0e %irst o% t0e ot0er 'laimants <0o in;este) in +lo0a #o$al t0rou10 .r
Cor)ner8 .r 4nno'ent 0as 9no<n .r Cor)ner %or 70/75 $ears8 T0e$ use) to li;e
aroun) t0e 'orner %rom ea'0 ot0er8 .r Cor)ner 0a) arran1e) a number o% mort1a1es
%or 0im* as <ell as an insuran'e 5oli'$ <it0 +llie) ,unbar8 .r 4nno'ent?s e;i)en'e
<as t0at it <as some time in +5ril or .a$ 2007 t0at .r Cor)ner su11este) t0at 0e
s0oul) loo9 at some 5ro5erties .r Cor)ner 0a) in (5ain as a 5ossible in;estment8
He mentione) t0e )e;elo5ment at +lo0a #o$al8 He tol) .r 4nno'ent t0at t0ere <ere
10 a5artments a;ailable t0ere8 T0e seller <as an 4ris0man name) .i'0ael Hone <0o
<as buil)in1 t0e 5ro5erties but <0o nee)e) 'as0 to 5a$ a 5artner o%%8 .r Cor)ner
sai) t0at 0e <as ;er$ 'lose to .r Hone an) <as 1oin1 to 0is )au10ter?s <e))in1*
t0ou10 .r 4nno'ent a''e5ts t0at 0e ma$ 0a;e been mista9en about t0at* an) t0at .r
Cor)ner ma$ 0a;e been re%errin1 to .r Hone?s o<n <e))in18 Be t0at as it ma$* .r
Cor)ner sai) t0ere <oul) be a 1oo) )eal i% 0e 'oul) 'ome u5 <it0 t0e mone$ Aui'9l$8
He sai) t0at .r Cen$on (<0o t0e$ bot0 9ne< but <0o .r 4nno'ent 0a) not seen %or
man$ $ears) 0a) alrea)$ 5ur'0ase) one o% t0e a5artments* as in)ee) 0a) (ir =eo%%
Hurst8
"28 .r Cor)ner s0o<e) .r 4nno'ent some bro'0ures8 3rom .r 4nno'ent?s )es'ri5tion
o% it* one o% t0em <as t0e 2007 bro'0ure8 4n t0e bro'0ure* .r 4nno'ent sa< a 5ri'e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
o% L>->*000 %or ea'0 a5artment8 (4n %a't* t0e 5ri'e <as L>->*"00* an) t0at 5ri'e
relate) onl$ to one t$5e o% a5artment8) .r Cor)ner tol) 0im t0at 0e 'oul) 1et it %or
B212*0008 .r 4nno'ent <or9e) out t0at t0is re5resente) a sa;in1 o% about B110*000/
B115*0008 .r 4nno'ent )i) not sa$ in 0is <itness statements t0at .r Cor)ner sai)
an$t0in1 about 0im 0a;in1 to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e u5 %ront* but .r
Cor)ner must 0a;e tol) 0im t0at %or 0im to 0a;e 5ai) t0e <0ole o% t0e 5ur'0ase 5ri'e
<it0in a %e< <ee9s8 .r 4nno'ent <as su%%i'ientl$ intereste) to ;isit (5ain an) loo9
at t0e )e;elo5ment G es5e'iall$ as .r Cor)ner tol) 0im t0at t0e 5eo5le 0e <as
<or9in1 %or <oul) 5a$ %or .r 4nno'ent?s a''ommo)ation in (5ain8 +ll .r 4nno'ent
0a) to )o <as 5a$ %or t0e %li10t8
"78 .r Cor)ner too9 .r 4nno'ent to a number o% sites8 4t is not entirel$ 'lear %rom .r
4nno'ent?s <itness statements <0et0er t0ese <ere )e;elo5e) or un)e;elo5e) sites* but
it loo9s as i% some o% t0em <ere un)e;elo5e)* some o% t0em <ere in t0e 5ro'ess o%
)e;elo5ment an) some <ere near 'om5letion8 +lo0a #o$al* t0ou10* <as
un)e;elo5e)8 .r 4nno'ent <as tol) t0at all o% t0e a5artments to be built on it <oul)
0a;e a sea ;ie<8 .r Cor)ner too9 0im to one o% #.=?s t<o o%%i'es in 6uerto Banus8
T0e one 0e <ent to <as on t0e %ront* <it0 t0e ot0er some 200 %eet ba'9 %rom t0e %ront8
.r Cor)ner 0a) a se5arate o%%i'e in t0e o%%i'e to <0i'0 .r 4nno'ent <as ta9en* <it0
0is o<n )es9 in it8
">8 3ollo<in1 0is ;isit to (5ain* .r 4nno'ent sa$s t0at 0e s5o9e to .r Cor)ner se;eral
times about 0is 5ossible 5ur'0ase o% one o% t0e a5artments at +lo0a #o$al8 4n t0e
'ourse o% t0ose 'on;ersations* .r Cor)ner tol) 0im a number o% t0in1s8 He tol) .r
4nno'ent t0at arran1ements <oul) be ma)e %or la<$ers to be instru'te) <0en t0e
a5artment <as built* an) .r 4nno'ent t0ere%ore belie;e) t0at 0e )i) not nee) a la<$er
at t0at sta1e8 .r Cor)ner tol) 0im not to <orr$ about <0at <oul) 0a55en to 0is
mone$ i% t0e site <as not )e;elo5e) be'ause (5anis0 la< reAuire) a ban9 1uarantee to
be in 5la'e* an) su'0 a 1uarantee <oul) be in 5la'e8 .r Cor)ner sai) t0at 0e <oul)
sort out t0at si)e o% t0in1s %or .r 4nno'ent8 .r Cor)ner sai) t0at .r 4nno'ent <oul)
onl$ 0a;e to 5a$ 4E+ (t0e (5anis0 eAui;alent o% E+T) i% 0e resol) t0e a5artment
be%ore it 0a) been built8 He sai) t0at .r 4nno'ent 'oul) 0a;e %irst '0oi'e o% t0e 10
a5artments bein1 sol)* an) 'oul) earn 'ommission o% B"*000 i% 0e intro)u'e) a bu$er
0imsel%8
"58 .r 4nno'ent e;entuall$ )e'i)e) to bu$ one o% t0e a5artments8 He '0ose one <0i'0
0a) sli10tl$ lar1er sAuare %oota1e t0an t0e ot0ers8 4t <as no8 228 #.=?s stan)ar)
5ro5ert$ reser;ation s0eet re'or)s no8 22 bein1 reser;e) %or .r 4nno'ent on 17 &une
20078 .r 4nno'ent 1a;e .r Cor)ner a '0eAue %or B212*000* <0i'0 .r Cor)ner
as9e) 0im to ma9e 5a$able to =ros;enor* <0i'0 .r Cor)ner sai) <as one o% .r
Hone?s 'or5orate ;e0i'les8 T0e '0eAue <as 5ai) into =ros;enor?s a''ount at Ban'o
(antan)er in 6uerto Banus on 1- &une 2007* <0i'0 is a little o)) be'ause t0e '0eAue
a55ears to be )ate) 20 &une 20078 4 sa$ Ha55ears to be )ate)I be'ause i% one loo9s
'are%ull$* t0e H2I o% H20I a55ears to 0a;e been <ritten o;er H1I8 Not0in1 seems to
turn on t0at* an) t0e 5ro5ert$ reser;ation s0eet re'or)s t0e sum o% L29"*000 0a;in1
been 5ai) in %ull on 1- &une 20078
"28 T<o 'omments s0oul) be ma)e about t0e 5ro5ert$ reser;ation s0eet8 3irst* it
5ur5orts to 0a;e been si1ne) b$ .r 4nno'ent an) .r Hone8 .r 4nno'ent sa$s t0at 0e
ne;er sa< it an) t0at t0e si1nature on it is not 0is8 4 0a;e no reason to )oubt t0at8 +
number o% t0e 'laimants sa$ t0e same t0in18 4t loo9s as i% t0e 'laimants? si1natures
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<ere Ha))e)I in #.=?s o%%i'e <0en it be'ame 9no<n t0at .r Cor)ner 0a) not
mana1e) to 1et t0em to si1n t0e 5ro5ert$ reser;ation s0eets8 (e'on)l$* at t0e %oot o%
.r 4nno'ent?s 5ro5ert$ reser;ation s0eet* .r Cor)ner <rote t0e %ollo<in1 note to .r
Hone: HT0is <as 5ai) b$ <a$ o% a stirlin1 [sic] '0eAue %or B212*000 on basis o% 18>
eD'0an1e rate8 6lease 5a$ ba'9 in %orm o% 'as0!'0eAue an$ monies o;er5ai) <0en
<e neDt meet8I 4 s0all return to t0e si1ni%i'an'e o% t0at later8
"-8 +%ter 0an)in1 o;er 0is '0eAue* .r 4nno'ent 0a) to '0ase .r Cor)ner %or t0e 'ontra't
o% sale8 W0en it arri;e) about siD <ee9s later it <as in (5anis08 .r 4nno'ent as9e)
.r Cor)ner %or one in En1lis0* but it )i) not arri;e %or %our mont0s or so8 W0en it
)i)* .r 4nno'ent sa< t0at li9e t0e (5anis0 ;ersion it <as )ate) 70 &ul$ 20078 4t <as
in t0e same %orm as t0e 'ontra't <0i'0 (ir =eo%% an) .r Ho5le$ re'ei;e)* an) name)
Wil'0ester as t0e 5romoter o% t0e lan)* but it 0a) not been si1ne)8 .r 4nno'ent
assume) t0at Wil'0ester <as :ust anot0er o% .r Hone?s 'or5orate ;e0i'les8 i9e .r
Ho5le$* 0e )i) not see .r Hone until mu'0 later8 T0at <as about t<o $ears a%ter 0e
0a) 5ur'0ase) no8 22* an) e;en t0en onl$ brie%l$8
""8 Mr and Mrs Roberts purchase of no. +0 Aloha Ro(al8 .r #oberts 0as 9no<n .r
Cor)ner %or o;er 20 $ears8 .r Cor)ner use) to 1o to a bin1o an) amusement ar'a)e
<0i'0 .r #oberts o<ne)* an) 0e <oul) ta9e 0is <i%e an) mot0er/in/la< t0ere a
'ou5le o% times a $ear to 5la$ bin1o8 T0e$ 1ot to 9no< ea'0 ot0er so'iall$* an) later
on .r Cor)ner arran1e) a number o% mort1a1es %or 0im8 .r #oberts? 5ur'0ase o%
no8 2" +lo0a #o$al <as not 0is %irst %ora$ into t0e (5anis0 5ro5ert$ mar9et at .r
Cor)ner?s su11estion8 4n about 2002 .r Cor)ner 0a) tol) 0im t0at 0e <as bu$in1 10
a5artments o%%/5lan at a )is'ount at a )e;elo5ment 'alle) os 3lamin1os* an) t0at 0e
<oul) be sellin1 t0em on to sele't 'ustomers %or L701*0008 W0en built* t0e$ <oul)
be <ort0 aroun) L>00*0008 .r #oberts bou10t t<o o% t0em an) 0is son bou10t one8
.r Cor)ner sai) t0at 0e <oul) arran1e mort1a1es %or t0em* an) 0e 1ot 0is la<$er in
(5ain* .aribel =allar)o* to a't on t0e transa'tion8 .r #oberts an) 0is son still
o<ne) t0e a5artments at t0e time o% 0is an) 0is <i%e?s 5ur'0ase o% no8 2" +lo0a
#o$al8 4n )ue 'ourse t0e )e;elo5ment at os 3lamin1os <as 'om5lete)8 .r
#oberts sol) one o% 0is a5artments in 200"* 0is son sol) 0is about siD mont0s be%ore
t0at* an) .r #oberts still o<ns 0is ot0er a5artment t0ere8 T0e$ <ere sol) %or more
t0an t0e$ 0a) been bou10t %or* but .r #oberts an) 0is son ma)e a net loss o% about
L50*000 on ea'0 a5artment <0en t0e 'ost o% re)eemin1 t0e mort1a1es* t0e 'ost o%
sellin1 t0e a5artments an) taDes <ere ta9en into a''ount8
"98 .r #oberts? e;i)en'e <as t0at it <as in t0e summer o% 2007 <0ile 0e <as in (5ain
t0at 0e 1ot a 'all %rom .r Cor)ner8 .r Cor)ner s5o9e to 0im about 10 a5artments in
a ne< )e;elo5ment 9no<n as +lo0a #o$al8 W0at .r Cor)ner <as a'tuall$ tellin1
0im about t0ese 10 a5artments <a;ere) in t0e 'ourse o% 0is e;i)en'e8 +t one 5oint in
0is <itness statements* 0e s5o9e o% .r Cor)ner 0a;in1 tol) 0im t0at 0e had bought
t0em* but at anot0er 0e s5o9e o% .r Cor)ner 0a;in1 tol) 0im t0at 0e 'as bu(ing t0em
in bul9* 1ettin1 t0e im5ression t0at 0e <as bu$in1 t0em )ire'tl$ %rom t0e buil)er8 He
sai) bot0 t0ose t0in1s at )i%%erent sta1es o% 0is oral e;i)en'e* a))in1 anot0er ;ersion
%or 1oo) measure <0en 0e sai) t0at 0e 0a) 1ot t0e im5ression t0at .r Cor)ner could
bu( t0e 10 a5artments* but t0at 0e nee)e) 5eo5le to bu$ t0em %rom 0im so t0at 0e
'oul) 5a$ %or t0em 0imsel%8 T0e most t0at 'an )e%initi;el$ be sai) o% t0is 5art o% .r
#oberts? e;i)en'e is t0at .r Cor)ner <as sa$in1 t0at i% .r #oberts )e'i)e) to bu$
one o% t0e a5artments* 0e <oul) be bu$in1 it %rom .r Cor)ner8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
908 .r #oberts? e;i)en'e <as 'learer <0en it 'ame to t0e 5ri'e8 .r Cor)ner* 0e sai)*
tol) 0im t0at 0e 'oul) sell one su'0 a5artment to 0im at a si1ni%i'ant )is'ount o%
aroun) L100*000/L150*0008 He sai) t0at .r #oberts 'oul) 5ossibl$ )ouble 0is
mone$8 Be'ause 0e <as 0a;in1 to 5a$ %or t0e a5artments 0imsel%* 0e nee)e) t0e
<0ole o% t0e 5ur'0ase 5ri'e u5 %ront8
918 .r #oberts <as attra'te) b$ t0e o%%er8 His t0in9in1 <as t0at i% 0e <as 1oin1 to be
bu$in1 an a5artment %rom .r Cor)ner* .r Cor)ner must 0a;e been 1ettin1 t0e 10
a5artments '0ea5er t0an i% 0e 0a) bou10t t0em one at a time* an) 0e 'oul) t0ere%ore
a%%or) to sell some o% t0em on to 5eo5le li9e .r #oberts at <0at 0e 0a) bou10t t0em
%or* be'ause 0e 'oul) re/sell t0e ot0ers at a 5ro%it8 T0at <as 0o< .r #oberts t0ou10t
.r Cor)ner 0a) %un)e) 0is 5ur'0ase o% t0e a5artments at os 3lamin1os8 He
t0ere%ore <ent to t0e site an) too9 a loo9 at it %or 0imsel%8 .r Cor)ner 0a) tol) 0im
t0at it <oul) ta9e about t<o $ears %or t0e )e;elo5ment to be 'om5lete)* an) 0a;in1
seen t0e site %or 0imsel%* .r #oberts t0ou10t t0at it <oul) ta9e some time to buil)8
928 .r Cor)ner 'onta'te) .r #oberts on'e .r #oberts 0a) returne) to t0e JC8 He sai)
t0at .r #oberts <oul) 0a;e 'elebrit$ nei10bours sin'e Harr$ #e)9na55 0a) bou10t at
+lo0a #o$al* an) =eo%% Hurst* .artin 6eters an) .i'0ael 3latle$ <ere all bu$in1
t0ere8 .r #oberts <as a su55orter o% West Ham* a 'lub <it0 <0i'0 (ir =eo%%* .artin
6eters an) Harr$ #e)9na55 <ere all 'losel$ 'onne'te)8 E;entuall$* .r an) .rs
#oberts a1ree) to bu$ one o% t0e a5artments on o%%er8 Be'ause .r #oberts t0ou10t
t0at t0e$ <oul) be bu$in1 t0e a5artment %rom .r Cor)ner at t0e 5ri'e <0i'0 .r
Cor)ner 0a) 5ai) %or it* 0e )i) not t0in9 t0at .r Cor)ner <oul) be ma9in1 a 5ro%it on
t0e sale o% t0e a5artment to t0em8 But 0a) 0e 9no<n t0at .r Cor)ner <as :ust an
a1ent* sellin1 t0e a5artment on be0al% o% .r Hone* and ma9in1 a lar1e 'ommission on
t0e si)e o% L">*700* 0e <oul) 5robabl$ not 0a;e 1one a0ea) <it0 t0e 5ur'0ase8 He
0a) some )i%%i'ult$ arti'ulatin1 <0$* but t0e e%%e't o% <0at 0e <as sa$in1* 4 t0in9* <as
t0at sin'e t0e 5ri'e <0i'0 0e an) 0is <i%e 0a) to 5a$ %or t0e a5artment <as L29"*000*
.r Hone <oul) onl$ be 1ettin1 L217*-00 %or it on'e 0e 0a) 5ai) .r Cor)ner?s
'ommission* an) i% .r Hone 0a) been 'ontent to sell at t0at 5ri'e* t0at rat0er
su11este) t0at t0e sale 5ri'e o% L29"*000 <as not su'0 a bar1ain a%ter all8
978 T0e a5artment <0i'0 .r an) .rs #oberts bou10t <as no8 2" +lo0a #o$al8 .r
Cor)ner 0a) 5re;iousl$ sai) t0at 0e 9ne< a la<$er <0o 'oul) sort out all t0e le1al
)o'umentation an) <0o 0e <oul) arran1e to a't on t0e transa'tion* so t0e$ le%t .r
Cor)ner to )eal <it0 t0e le1al si)e o% t0in1s8 #.=?s stan)ar) 5ro5ert$ reser;ation
s0eet re'or)s t0e a5artment as 0a;in1 been reser;e) %or t0em on 1" &une 2007* an)
t0e 5ur'0ase 5ri'e o% L29"*000 0a;in1 been 5ai) in %ull t0at )a$8 4t <as not si1ne) b$
an$one on be0al% o% t0e ;en)or8 4t 5ur5orts to 0a;e been si1ne) b$ .r #oberts* but
0e sa$s t0at t0e si1nature is not 0is8 i9e .r 4nno'ent?s 5ro5ert$ reser;ation s0eet* at
t0e bottom t0ere <as a note to .r Hone %rom .r Cor)ner <0i'0 rea)s: HC0eAue 5ai)
into Ban9 o% (aba)el [sic]8 6lease see atta'0e) 'o5$ o% '0eAue8 But i% better t0an
18>0 rate s0oul) be 18>>8I +1ain* 4 s0all return to t0e si1ni%i'an'e o% t0at later8 T0e
'0eAue to <0i'0 .r Cor)ner?s note re%ers is .r an) .rs #oberts? '0eAue %or
B211*7>-* bein1 t0e sterlin1 eAui;alent o% L29"*000 at an eD'0an1e rate o% B1800 to
L18>1* 5a$able to #.=8 But t0e '0eAue is )ate) 19 August 2007* an) it %ollo<s t0at
t0e )ate on t0e 5ro5ert$ reser;ation s0eet 'annot be 'orre't8 4n)ee)* it is ob;ious t0at
t0e )ate 1" &une 2007 in t<o 5la'es on t0e 5ro5ert$ reser;ation s0eet <as <ritten o;er
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0e ori1inal )ate* <0i'0 <as 5resumabl$ 19 +u1ust 20078 +1ain* not0in1 a55ears to
turn on t0at8
9>8 Fn 1- (e5tember 2007* .r an) .rs #oberts <ere sent t<o ;ersions o% t0e 'ontra't o%
sale G one in (5anis0 an) t0e ot0er in En1lis08 4t <as in t0e same %orm as t0e
'ontra'ts o% sale sent to t0e ot0er 'laimants8 4t 0a) been si1ne) b$ .r Hone8
Wil'0ester <as name) as t0e 5romoter o% t0e lan)* an) alt0ou10 .r #oberts noti'e)
t0at at t0e time* it )i) not 'ause 0im an$ 'on'ern* be'ause 0e assume) t0at it <as a
'om5an$ in <0i'0 .r Cor)ner <as in;ol;e)8 T0e %a't t0at 0e <as in;ol;e) in an
o%%s0ore 'om5an$ <as 'onsistent <it0 <0at .r Cor)ner 0a) tol) 0im about 0a;in1
o%%s0ore ban9 a''ounts8
958 +t t0e same time* .r #oberts sa$s t0at 0e re'ei;e) a 'o5$ o% 5art o% Harr$
#e)9na55?s 'ontra't8 4t ma$ be t0at 0e <as sent t0at* but 0e 'oul) not 0a;e re'ei;e)
it t0en be'ause it is )ate) 22 +u1ust "##18 4t relates to no8 21 +lo0a #o$al* but it
loo9s as i% it <as a 'ontra't o% t0e 9in) <0i'0 (ir =eo%% <as o%%ere) <0en .r Hone
<as tr$in1 to 1et (ir =eo%% to len) 0im t0e B750*0008 T0at is be'ause un)er t0e
'ontra't Harr$ #e)9na55 <as bein1 reAuire) to 5a$ B>00*000 u5 %ront <it0 t0e ri10t
to reAuire .r Hone to bu$ ba'9 t0e a5artment 1" mont0s later %or B200*0008 +n) no8
21 +lo0a #o$al 0a55ene) to be t0e a5artment <0i'0 .r Ho5le$ <as o%%ere) as
se'urit$ %or t0e B750*000 <0i'0 0e <as t0in9in1 o% len)in1 to .r Hone8
928 Mr Barkle(s purchase 'ith Mr Cordner of no. -+ Aloha Ro(al8 .r Bar9le$ is a
%inan'ial a);iser8 He %irst met .r Cor)ner about 12 $ears a1o <0en t0e$ <ere bot0
<or9in1 %or +llie) ,unbar as sales mana1ers8 4n about (e5tember 2007* t0e$ <ere at
an +llie) ,unbar sales 'on;ention in .auritius8 .r Cor)ner tol) .r Bar9le$ t0at 0e
<as a'tin1 %or Ht0e #o$al .arbella =rou5I* an) 0a) 'ome a'ross an in;estment
o55ortunit$ in (5ain8 He sai) t0at .i'0ael Hone* <0o o<ne) 50K o% #.=* <ante)
to bu$ out t0e o<ner o% t0e ot0er 50K o% #.=* <0o <as a man in 0is siDties an) <0o
<ante) to 1o o%% into t0e sunset <it0 a mu'0 $oun1er <oman <0o 0e 0a) :ust
marrie)8 .r Hone* sai) .r Cor)ner* <ante) to raise B2m* an) to )o so 0e <as
sellin1 9* 5ossibl$ 10* a5artments in a )e;elo5ment near 6uerto Banus to be 9no<n as
+lo0a #o$al %or B212*000 ea'08 .r Cor)ner sai) t0at t0e real 5ri'e <as L>"0*000
(<0i'0 s0oul) 0a;e been L>->*"00)* an) t0e reason <0$ t0e a5artments <ere bein1
o%%ere) at su'0 a lar1e )is'ount <as t0at .r Hone nee)e) t0e mone$ strai10t a<a$*
<0i'0 <as <0$ in;estors <ere bein1 as9e) to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e u5
%ront* e;en t0ou10 t0e$ <ere bu$in1 o%%/5lan8
9-8 +lt0ou10 t0at <as <0at .r Bar9le$ <as tol)* t0is <as not an in;estment in <0i'0 0e
'oul) 5arti'i5ate G not t0en at an$ rate8 T0at <as be'ause* so .r Cor)ner tol) .r
Bar9le$* all t0e a5artments 0a) been sol)* or <ere un)er o%%er8 But 0e 5romise) to let
.r Bar9le$ 9no< i% an$one )ro55e) out an) an a5artment be'ame a;ailable8 He sai)
t0at 0e <oul) ma9e sure t0at .r Bar9le$ 1ot t0e %irst o55ortunit$ to bu$ one8
9"8 3ollo<in1 .r Bar9le$?s return to t0e JC* .r Cor)ner 1ot in tou'0 <it0 0im8 T0is
<as some time in F'tober 20078 He tol) .r Bar9le$ t0at an o55ortunit$ to in;est in
t0e )e;elo5ment 0a) arisen be'ause one o% t0e a5artments t0ere 0a) be'ome
a;ailable8 .r Bar9le$ %le< out to (5ain in earl$ No;ember 2007* an) .r Cor)ner
too9 0im to bot0 o% #.=?s o%%i'es in 6uerto Banus8 4n t0e one on t0e %ront %a'in1
t0e sea* .r Bar9le$ met .r Hone brie%l$8 .r Hone )i) not 1i;e 0im a Hsales 5it'0I8
He :ust tol) .r Bar9le$ 0o< <ell t0e business <as )oin1 an) 0o< bus$ t0e$ all <ere8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
He le%t t0e )is'ussions about .r Bar9le$?s 5ro5ose) in;estment to .r Cor)ner8 T0is
o%%i'e 0a) lar1e 50oto1ra50s o% (ir =eo%% an) (ir (te;e #e)1ra;e in t0e <in)o<* an)
.r Cor)ner tol) .r Bar9le$ t0at t0e$ <ere ambassa)ors %or #.=8 W0ile .r
Bar9le$ <as in t0e o%%i'e* t0ere <as tal9 about .r Cor)ner 0a;in1 0is 50oto1ra50
ta9en as 0e <as t0e '0airman o% #.=* an) it nee)e) to 1o into t0e bro'0ure8 .r
Cor)ner also 1a;e .r Bar9le$ 0is business 'ar) <0i'0 )es'ribe) 0im as t0e '0airman
o% #.= base) in Wat%or)8
998 .r Cor)ner t0en too9 .r Bar9le$ to t0e site <0ere +lo0a #o$al <as to be built8 4t
<as a 1reen %iel) site* %en'e) aroun) t0e 5erimeter <it0 lar1e 50oto1ra50s o% (ir
=eo%% an) (ir (te;e on some o% t0e 0oar)in1s8 T0ere <as no si1n o% an$ 'onstru'tion
1oin1 on* but .r Cor)ner tol) .r Bar9le$ t0at t0e )e;elo5ment <oul) be 'om5lete)
in 1" mont0s8 .r Bar9le$ noti'e) t0at t0e )e;elo5ment <as to be built ri10t in %ront
o% anot0er )e;elo5ment an) <oul) blo'9 its ;ie<8 He t0ere%ore as9e) .r Cor)ner
0o< 5lannin1 5ermission 0a) been obtaine)8 .r Cor)ner tol) 0im t0at .r Hone 0a)
o<ne) t0e site sin'e 19"2 an) t0at 5lannin1 5ermission <as t0ere%ore 1uarantee)8
He a))e) t0at in an$ e;ent t0ere <as or <oul) be a ban9 1uarantee in 5la'e8 .r
Bar9le$ as9e) .r Cor)ner <0at t0at meant* an) .r Cor)ner state) t0at i% t0e
a5artments <ere not built* t0e in;estors <oul) be 1uarantee) t0eir mone$ ba'98 .r
Cor)ner t0en too9 .r Bar9le$ to some ot0er sites <0i'0 <ere bein1 )e;elo5e) b$ .r
Hone an) #.=* in'lu)in1 one at +l)ea Bea'08 He also tol) .r Bar9le$ about ot0er
'elebrities <0o <ere to be ambassa)ors %or #.=8
1008 .r Bar9le$ tol) .r Cor)ner t0at 0e 'oul) not a%%or) to bu$ t0e a5artment* an) .r
Cor)ner sai) t0at 0e <as <illin1 Hto 1o 0al;esI <it0 .r Bar9le$ on it as 0e <ante) to
bu$ at +lo0a #o$al an$<a$8 4n)ee)* 0e tol) .r Bar9le$ t0at 0e 0a) alrea)$ bou10t
an a5artment t0ere 0imsel%8 +t some sta1e* .r Cor)ner 1a;e .r Bar9le$ a 5a5er on
<0i'0 0e 0a) <ritten in euros t0e rele;ant %i1ures %or no8 52 +lo0a #o$al8 T0e
laun'0 5ri'e <as to be L>->*"00* but t0e 5ri'e at <0i'0 it 'oul) be sol) to .r Bar9le$
<as L29"*0008 T0at meant t0at it <oul) 'ost ea'0 o% t0em L1>9*000* <0i'0 at an
eD'0an1e rate o% B1800 to L18>1 'ame out at B105*2-78 T0e note also sai) t0at t0e
eD5e'te) sellin1 5ri'e in 1>/12 mont0s <as L200*000/L250*000* an) t0at t0e$ s0oul)
be able to )ouble t0eir mone$ <it0in t0at time8 .r Cor)ner also tol) 0im at some
sta1e t0at i% t0e %lat <as to be sol) be%ore its 'onstru'tion 0a) been 'om5lete)* 4E+
<oul) not be 5a$able on t0e 5ur'0ase* but on'e t0e 0abitation li'en'e 0a) been
1rante)* 4E+ <as 5a$able on t0e 5ur'0ase at t0e rate o% -K8
1018 .r Bar9le$ )e'i)e) to a''e5t .r Cor)ner?s o%%er t0at t0e$ 1o 0al;es8 His intention
<as to sell t0e a5artment be%ore it <as 'om5lete)8 .r Cor)ner tol) 0im t0at a
(5anis0 la<$er 0e 9ne<* ($l;ia Cam5aRa* <oul) loo9 a%ter t0e le1al %ormalities %or
t0em8 (0e 0a)* 0e sai)* a'te) %or 0im on 5ro5erties <0i'0 0e 0a) bou10t %rom #.=8
He also sai) t0at t0e$ s0oul) bu$ t0e a5artment t0rou10 an o%%s0ore 'om5an$ as t0at
<oul) be taD e%%i'ient* an) t0at t0e$ s0oul) enlist .r #ee)?s ser;i'es in t0at
'onne'tion8 T0e 'om5an$ <0i'0 .r #ee) eit0er a'Auire) or 'ause) to be
in'or5orate) %or t0at 5ur5ose <as C0am5a1ne 4n;estments 4n'* anot0er 'om5an$
in'or5orate) in ,ela<are8
1028 Be%ore lea;in1 (5ain* .r Bar9le$ si1ne) #.=?s stan)ar) 5ro5ert$ reser;ation s0eet*
<0i'0 s0o<e) t0at no8 52 0a) been reser;e) %or .r Cor)ner an) .r Bar9le$ in t0e
name o% C0am5a1ne 4n;estments 4n'8 +lt0ou10 .r Bar9le$ 0a) not $et 1i;en .r
Cor)ner 0is s0are o% t0e 5ur'0ase 5ri'e* be'ause 0e 0a) not ta9en 0is '0eAueboo9 to
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
(5ain <it0 0im* t0e 5ro5ert$ reser;ation s0eet re'or)e) t0at t0e 5ur'0ase 5ri'e o%
L29"*000 0a) been 5ai) in %ull on - No;ember 20078 Fn 0is return to t0e JC* .r
Bar9le$ sent a '0eAue %or B10>*929* <0i'0 <as t0e sterlin1 eAui;alent o% L1>9*000 at
an eD'0an1e rate o% B1800 to L18>2* to #.=?s JC o%%i'e8 He ma)e t0e '0eAue
5a$able to #.= as t0at <as <0at .r Cor)ner 0a) sai)8 T0e '0eAue <as )ate) 12
No;ember 2007* an) <as )ra<n on t0e :oint a''ount o% .r an) .rs Bar9le$* t0ou10
it <as .r Bar9le$ alone <0o <as in;estin1 in t0e a5artment8
1078 + mont0 or so later* .r Cor)ner as9e) .r Bar9le$ <0et0er 0e <oul) be intereste) in
be'omin1 one o% #.=?s salesmen in t0e JC8 H4ntro)u'erI <as t0e <or) 0e use)8
.r Bar9le$ a1ree) to )o so* an) 0e also a1ree) to a55roa'0 ot0er sales 5eo5le 0e
9ne< t0rou10 +llie) ,unbar <0o mi10t be similarl$ intereste)8 He arran1e) a
seminar at a 0otel in (urre$ in &anuar$ 200>* an) about 70 5eo5le atten)e)8 .r
Cor)ner <as )ue to atten)* but instea) 0e sent #ussell West* <0ose business 'ar)
)es'ribe) 0im as #.=?s national sales )ire'tor base) at Hat%iel)8 .r West 1a;e a
5resentation o% #.=?s )e;elo5ments8 T0e onl$ si1ni%i'an'e o% t0at is t0at one o% t0e
to5i's 'o;ere) in .r West?s 5resentation <as ban9 1uarantees8 His sli)e 5resentation
sai) t0at t0e$ <ere a;ailable Hon all sitesI* an) t0at t0e H'lients? )e5osit mone$I <as
5rote'te) be'ause it <as H%ull$ ban9 1uarantee)I8 3ollo<in1 t0e seminar* .r
Bar9le$ <rote to .r Cor)ner <it0 a number o% Auestions <0i'0 0e an) ot0er
atten)ees 0a) about mar9etin1 #.=?s )e;elo5ments* one o% <0i'0 relate) to t0e ban9
1uarantees8 T0at Auestion rea):
HHo< lon1 a%ter 5a$in1 t0e )e5osit )o t0e 'lients 1et t0e ban9
1uarantee* an) more im5ortantl$* <e 0a;e 0a) some 'lients sa$
t0at t0e$ <oul) not 5a$ t0e )e5osit until t0e$ 9no< t0e ban9
1uarantee is in 5la'e8I
W0en #.=(JC) 5ro)u'e) a 1ui)e %or intro)u'ers* t0e 1ui)e in'lu)e) t0e %ollo<in1
ans<er to t0eir Auestion:
HFn'e t0e 'lient?s 70K )e5osit is lo)1e) in t0e (5anis0
a<$er?s 'lient a''ount an) t0e (ale 'ontra't is %inalise) (i8e8
si1ne) b$ t0e 'lient?s la<$er an) #o$al .arbella ,ire'tor in
%ront o% a (5anis0 Notar$)* t0en t0e la<$er 'an arran1e %or t0e
(5anis0 Ban9 un)er<ritin1 t0e )e;elo5ment to issue t0e
1uarantee to t0e 'lient8 NB: T8-/ -/ t8e S9,n-/8 +e5,+ 9ro7e//
NOT , Ro;,+ M,r4e++, ?9ro7e//@A '+e,/e noteB 8owe=er6
Ct8,tD t8e 7+-ent@/ .one; /t,;/ -n t8e +,w;er@/ 7+-ent ,77o:nt
,n0 NOT -n Ro;,+ M,r4e++,@/ ,77o:ntAI
10>8 4t ma$ <ell be t0at t0is ans<er <as )ra%te) b$ .r West* not .r Cor)ner8 4t is
un)oubte)l$ t0e 'ase t0at t0e ori1inal 0an)<ritten )ra%t o% t0e ans<er is not in .r
Cor)ner?s 0an)<ritin18 But 4 am sure t0at t0e ans<er re5resents <0at .r Cor)ner
<oul) 0imsel% 0a;e been a<are o% at t0e time8 4t <oul) t0ere%ore mean t0at 0e 9ne<
t0at (5anis0 la< reAuire) an$ )e5osit 5ai) b$ t0e 5ur'0aser <0en bu$in1 a 5ro5ert$
o%%/5lan to be 5rote'te) b$ a ban9 1uarantee <0i'0 <oul) be 5ut in 5la'e on'e t0e
5ur'0aser 0a) si1ne) t0e 'ontra't o% sale8 T0e ans<er )oes not a'tuall$ sa$ t0at t0e
reAuirement to 9ee5 t0e 5ur'0aser?s )e5osit se5arate %rom #.=?s o<n %un)s is a le1al
reAuirement* but a1ain sin'e t0e ans<er re5resents <0at .r Cor)ner <oul) 0imsel%
0a;e t0ou10t at t0e time* it <oul) mean t0at 0e 9ne< t0at #.=?s in/0ouse 5ra'ti'e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
reAuire) t0at an$ )e5osit 5ai) b$ t0e 5ur'0aser remaine) in t0e (5anis0 la<$er?s
'lient a''ount8
1058 Fn 9 3ebruar$ 200> .r Bar9le$ <as sent t0e 'ontra't o% sale8 4t <as )ate) 10
,e'ember 20078 4t s0o<e) t0at 0e an) .r Cor)ner 0a) 5ur'0ase) no8 52 +lo0a
#o$al in t0e name o% C0am5a1ne 4n;estments 4n'8 4t <as in t0e same %orm as t0e
'ontra'ts o% sale <0i'0 t0e ot0er 'laimants re'ei;e)8 4t 0a) been si1ne) b$ .r Hone8
Wil'0ester an) =ros;enor <ere name) as t0e 5romoters o% t0e lan)8 4% .r Bar9le$?s
t0ir) <itness statement is to be ta9en literall$* 0e )i) not noti'e t0at =ros;enor <as
name) as one o% t0e 5romoters o% t0e lan)* be'ause 0e onl$ mentions noti'in1 t0e
name o% Wil'0ester8 Be t0at as it ma$* 0e <as sur5rise) <0en 0e sa< Wil'0ester?s
name in t0e 'ontra't* in t0e li10t o% <0at .r Cor)ner 0a) sai) about #.= bein1 t0e
o<ner o% t0e )e;elo5ment8 He s5o9e to .r Cor)ner about t0at strai10t a<a$* an) .r
Cor)ner tol) 0im t0at Wil'0ester <as .r Hone?s 'om5an$8 T0at 5ut .r Bar9le$?s
min) at rest sin'e .r Cor)ner 0a) 5re;iousl$ sai) t0at .r Hone 0a) been one o% t0e
t<o o<ners o% #.=8 4nterestin1l$* t0e )o'ument re%erre) to at [-5] abo;e in <0i'0
(5anis0 e1al (er;i'es 'on%irme) t0at it <as 0ol)in1 Wil'0ester?s )ee) o%
'onstitution <as a))resse) to .r Cor)ner an) .r Bar9le$* <0i'0 su11ests t0at it
'ame into eDisten'e in or)er to 5ro;i)e some 'om%ort %or .r Bar9le$8 4n)ee)* .r
Bar9le$ t0ou10t t0at t0e )o'ument 0a) a'tuall$ been atta'0e) to t0eir 'ontra't o% sale8
1028 4 s0all 'ome later to <0at .r Bar9le$ G an) t0e ot0er 'laimants G )i) to 5ro1ress
t0in1s* but t0ere is one %eature o% .r Bar9le$?s 'ase <0i'0 4 s0oul) mention 0ere8
F;er t0e $ears* .r Bar9le$ be'ame in'reasin1l$ 'on'erne) t0at somet0in1 <as
seriousl$ amiss <it0 t0e <0ole transa'tion* an) in 200" 0e be1an to as9 .r Cor)ner
to 5ro;i)e e;i)en'e t0at 0e 0a) 5ai) %or 0is o<n 0al%/s0are o% t0e a5artment8 .r
Cor)ner initiall$ sai) t0at 0e o5erate) so man$ ban9 a''ounts t0at 0e <oul) not 0a;e
a 'lue <0i'0 one 0e ma)e t0e 5a$ment %rom8 4n)ee)* 0e )i) not 9no< <0et0er 0e
0a) a'tuall$ ma)e a 5a$ment or <0et0er 0e 0a) set o%% some o% t0e 'ommission to
<0i'0 0e <as entitle) %rom #.= to<ar)s t0e 5ur'0ase 5ri'e8 B$ .ar'0 2009* .r
Bar9le$ <as 5ressin1 .r Cor)ner on an almost )ail$ basis to 5ro;i)e e;i)en'e o% 0is
5a$ment* an) e;entuall$ .r Cor)ner 5ro;i)e) .r Bar9le$ <it0 a ;er$ ba) 50oto'o5$
o% a '0eAue %or B99*97" 5a$able to =ros;enor8 T0is '0eAue 'oul) not 0a;e been .r
Cor)ner?s 5a$ment %or 0is 0al%/s0are o% no8 52 +lo0a #o$al G not sim5l$ be'ause 0is
0al%/s0are <as B10>*929* not B99*97"* but also be'ause t0e '0eAue <as )ate) 2- &une
2007* <0i'0 <as o;er %our mont0s before t0e$ 0a) a1ree) to bu$ no8 528 W0en .r
Bar9le$ 5ointe) t0at out to .r Cor)ner* 0e sai) t0at 0e must 0a;e sent 0im t0e <ron1
'0eAue8
10-8 Ho<e;er* in t0e 5ro'ess o% )is'losure %ollo<in1 t0e issue o% t0ese 5ro'ee)in1s* .r
Cor)ner )is'lose) a better 'o5$ o% t0at '0eAue8 Fn t0at 50oto'o5$ but un)erneat0
t0e '0eAue* .r Hone 0a) <ritten: H#e'ei;e) 1-!2!078 No8 52 +lo0a #o$al8I He 0a)
t0en si1ne) it8 W0at 0a) 0a55ene) <as t0at .r Cor)ner 0a) 0imsel% bou10t no8 52
+lo0a #o$al8 His '0eAue to =ros;enor %or B99*97" re5resente) 5art/5a$ment %or t0at
5ur'0ase* an) .r Hone 0a) a'9no<le)1e) re'ei5t o% t0e '0eAue on a 50oto'o5$ o%
t0e '0eAue* <0i'0 0e t0en sent to .r Cor)ner8 T0e 'ase a);an'e) on .r Bar9le$?s
be0al% <as* t0ere%ore* t0at .r Cor)ner )e'i)e) to 5reten) t0at t0is '0eAue re5resente)
0is 5a$ment %or 0is 0al%/s0are o% no8 52 +lo0a #o$al* an) 0e t0en 50oto'o5ie) t0e
50oto'o5$ o% it in su'0 a <a$ as to remo;e .r Hone?s re'ei5t be'ause t0at <oul)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
0a;e )is'lose) to .r Bar9le$ t0at t0e re'ei5t relate) to t0e 5ur'0ase o% anot0er
a5artment alto1et0er8
10"8 (o 0o< )i) .r Cor)ner 5a$ %or 0is 0al%/s0are in no8 52P +not0er )o'ument
)is'lose) b$ .r Cor)ner %ollo<in1 t0e issue o% t0e 5ro'ee)in1s re;eals t0at8 4t is a
note <0i'0 .r Cor)ner <rote to .r Hone8 Ha;in1 re'or)e) t0at t0e 5ur'0ase 5ri'e
o% no8 52 0a) been L217*-00* an) t0at t0e sterlin1 eAui;alent o% L151*000 0a) been
5ai) b$ .r Bar9le$* .r Cor)ner <as tellin1 .r Hone t0at t0e balan'e o% t0e 5ur'0ase
5ri'e* i8e8 L22*-00* s0oul) 'ome %rom t0e 'ommission o% L">*700 <0i'0 0e <as
entitle) to %rom t0e sale o% no8 20 +lo0a #o$al to (ir =eo%% an) .r 6o<er8 He <as
t0ere%ore tellin1 .r Hone t0at 0e <as still o<e) t0e balan'e o% t0at 'ommission* i8e8
L21*200* an) t0at 0e <oul) be in;oi'in1 .r Hone %or t0at in )ue 'ourse8
1098 .r Cor)ner* o% 'ourse* ma)e a mista9e <0en 0e sai) t0at .r Bar9le$ 0a) 5ai) t0e
sterlin1 eAui;alent o% L151*0008 .r Bar9le$ 0a) onl$ 5ai) t0e sterlin1 eAui;alent o%
L1>9*0008 But more im5ortant is 0is statement t0at t0e 5ur'0ase 5ri'e %or no8 52 0a)
been L217*-008 T0e real 5ur'0ase 5ri'e 0a) been L29"*0008 W0at .r Cor)ner <as
)oin1 <as )e)u'tin1 0is 'ommission o% L">*700* an) t0en 'allin1 t0e resultin1 %i1ure
o% L217*-00 t0e 5ur'0ase 5ri'e8 T0e si1ni%i'an'e o% all t0is is t0at i% .r Cor)ner 0a)
tol) .r Bar9le$ 0o< 0e 0a) reall$ 5ai) %or 0is 0al%/s0are o% no8 52* .r Bar9le$ <oul)
0a;e 9no<n t0at .r Cor)ner <as 1ettin1 'ommission o% L">*700 on a5artments 0e
sol) at +lo0a #o$al* an) t0at 0e 0a) e;en 1ot 'ommission o% L">*700 on t0eir o<n
5ur'0ase8 +lt0ou10 t0e$ <ere su55ose) to be 1oin1 0al;es on t0e 5ur'0ase* t0e
e%%e't o% t0at <as t0at .r Bar9le$ 0a) 5ai) t0e sterlin1 eAui;alent o% L1>9*000 %or 0is
0al%/s0are* <0ereas .r Cor)ner 0a) 5ai) onl$ L22*-00 %or 0is8 T0e 'ase a);an'e) on
.r Bar9le$?s be0al%* t0ere%ore* <as t0at .r Cor)ner 0a) been relu'tant to )is'lose
0o< 0e 0a) 5ai) %or 0is o<n 0al%/s0are* be'ause t0at <oul) 0a;e re;eale) t0at t0e$
0a) not been 1oin1 0al;es at all8
1108 Ho<e;er* it <as not :ust t0e %a't t0at t0e$ <ere not 1oin1 0al;es <0i'0 'on'erns .r
Bar9le$ no< t0at 0e 9no<s t0e 'ommission <0i'0 .r Cor)ner <as ma9in1 on t0e
5ur'0ase8 Ha) 0e 9no<n t0at at t0e time* 0e <oul) not 0a;e 1one a0ea) <it0 t0e
5ur'0ase8 +t one sta1e* it loo9e) as i% 0e <as Auali%$in1 t0e eDtent to <0i'0 0is
9no<le)1e o% t0e 'ommission <oul) 0a;e a%%e'te) <0at 0e )i)* be'ause 0e sai) t0at i%
.r Cor)ner 0a) been 5a$in1 %or 0is s0are o% t0e 5ur'0ase 5ri'e %rom 'ommission on
some ot0er )eal* t0at <oul) not 0a;e trouble) 0im8 Ho<e;er* 0is ultimate 5osition*
<0i'0 4 'an rea)il$ un)erstan)* <as t0at it <as t0e si@e o% t0e 'ommission <0i'0
reall$ <orrie) 0im G no )oubt* be'ause .r Hone <oul) onl$ 0a;e 1ot L217*-00 out o%
t0e sale %or 0imsel%8 +s .r Bar9le$ 5ut it* <0ere <as t0e 5ro%it 1oin1 to 'ome %romP
T0e a5artment <oul) 0a;e 0a) to in'rease in ;alue b$ L">*700 be%ore t0ere <oul) be
a 5ro%it %or 0im an) .r Cor)ner8
1118 Mr 2en(ons purchase of no. +1 Aloha Ro(al8 .r Cen$on is a )ire'tor o% a 'om5an$
<0i'0 installs ele'tri'al s$stems in buil)in1s8 He 0as been in;ol;e) in 5ro5ert$
buil)in1 an) )e;elo5ment in a small <a$8 He o<ns %i;e 5ro5erties in t0is 'ountr$ as
<ell as a ;illa in (5ain8 He 0as 9no<n .r Cor)ner %or about 11 $ears8 T0e$ met
<0en .r an) .rs Cen$on mo;e) to t0e small 'ul/)e/sa' in Hat%iel) <0ere .r an)
.rs Cor)ner <ere li;in18 T0eir %amilies so'ialise)* an) a 'lose %rien)s0i5 )e;elo5e)8
4n )ue 'ourse* .r Cor)ner be'ame .r Cen$on?s %inan'ial a);iser* an) on .r
Cor)ner?s a);i'e 0e bou10t s0ares %or a not in'onsi)erable sum in a 'om5an$ <0i'0
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
e;entuall$ <ent into liAui)ation8 He lost 0is mone$* as )i) .r Cor)ner <0o 0a)
ma)e a similar in;estment8
1128 .r Cen$on 9ne< about .r Cor)ner?s in;ol;ement <it0 5ro5ert$ in (5ain be'ause in
3ebruar$ 2007 .r Cor)ner 0a) rente) an o%%i'e %rom .r Cen$on in Hat%iel)8 T0e
si1na1e re%erre) to H#o$al .arbella JCI or somet0in1 li9e t0at8 4n)ee)* t0e %irst
in;estment <0i'0 .r Cen$on ma)e in (5ain at .r Cor)ner?s su11estion <as in t0e
summer o% 20078 T0at <as about t0e time <0en some o% t0e ot0er 'laimants <ere
bu$in1 t0eir a5artments at +lo0a #o$al8 .r Cor)ner tol) .r Cen$on t0at 0e 0a) a
;er$ 1oo) )eal 1oin1 on a )e;elo5ment 9no<n as +l)ea Bea'08 .r Cen$on
a''om5anie) .r Cor)ner to (5ain an) loo9e) at t0e site8 He )e'i)e) to 5ro'ee) an)
5ai) )e5osits o% B50*000 ea'0 %or t<o 'orner 5lots* but a5art %rom some <or9 on t0e
%oun)ations an) t0e la$in1 o% some 5i5e<or9* t0e )e;elo5ment <as ne;er built8 .r
Cen$on ne;er 1ot 0is mone$ ba'98 +l)ea Bea'0 <as one o% #.=?s )e;elo5ments G
at an$ rate* it <as to #.= t0at .r Cen$on t0in9s 0is t<o '0eAues %or B50*000 <ere
5a$able8 4n)ee)* b$ t0e time .r Cen$on bou10t 0is a5artment at +lo0a #o$al* 0e
9ne< t0at one o% #.=?s mar9etin1 strate1ies <as to in;ite 'elebrities to en)orse its
)e;elo5ments8 .r Cor)ner 0a) tol) 0im t0at Cim Wil)e an) 0er 0usban) <oul) be
in;estin1 in an) runnin1 a bar at +l)ea Bea'0* t0at (ir (te;e #e)1ra;e <as alrea)$ an
ambassa)or %or t0e 1rou5* an) t0at (ir =eo%% Hurst <as in;estin1 in +lo0a #o$al8
1178 4n .ar'0 200>* .r Cor)ner 5ersua)e) .r Cen$on to bu$ anot0er a5artment o%%/5lan
in (5ain G t0is time at +lo0a #o$al8 T0is <as a site* 0e sai)* on <0i'0 92 a5artments
<ere to be built* an) t0at t0e 'om5an$ )e;elo5in1 t0e sites <as #.=* <0i'0 <as a
5ro5er 'om5an$ an) 0a) been in business %or 25 $ears8 .r Cen$on <as not sure
<0et0er 0e <as tol) <0et0er it <as .r Hone or #.= <0o o<ne) t0e site G 0e sai)
)i%%erent t0in1s at )i%%erent times8 But .r Cor)ner )i) sa$ t0at 0e <as t0e '0airman
o% #.=* t0at 0e 9ne< .r Hone <ell an) t0at t0ere <as a ;er$ 1oo) )eal 1oin1
be'ause .r Hone <ante) to raise mone$ to bu$ out 0is 5artner in #.=8 .r Hone
<as t0ere%ore sellin1 9 a5artments at +lo0a #o$al at a ;er$ si1ni%i'ant )is'ount*
t0ou10 t0e <0ole o% t0e 5ur'0ase 5ri'e 0a) to be 5ai) u5 %ront8 .r Cor)ner sai) t0at
0e 0a) onl$ one a5artment le%t* an) t0at be'ause .r Cen$on <as a 1oo) %rien) o% 0is*
0e )i) not <ant 0im to miss out on t0e o55ortunit$8 He a))e) t0at 0e <as 0imsel%
bu$in1 at +lo0a #o$al <it0 (an)ra an) 0is 5arents* an) t0at .r Cen$on <oul) nee)
to ma9e u5 0is min) imme)iatel$8
11>8 .r Cor)ner <rote )o<n t0e rele;ant %i1ures on a 5ie'e o% 5a5er8 T0e a5artment <as
no8 2> +lo0a #o$al8 4ts laun'0 5ri'e <as L>->*"00* but t0e Hs5e'ial 5ri'eI <0i'0 .r
Cen$on 'oul) bu$ it %or <as L720*0008 T0e sterlin1 eAui;alent o% t0at at an
eD'0an1e rate o% B1800 to L18>7 <as B251*->"8 Wor9 on t0e %oun)ations 0a) been
)ue to start on 20 3ebruar$ 200>* an) t0e 'onstru'tion <as )ue to be 'om5lete) b$
+5ril or .a$ 20058 T0e note re'or)e) t0at .r Cen$on <oul) 0a;e t0e o5tion o%
eit0er 9ee5in1 a H%antasti' a5artmentI or sellin1 it %or L550*000/L-00*0008
1158 .r Cen$on )e'i)e) to 1o a0ea) <it0 t0e )eal* an) a )a$ or t<o later 0e 1a;e .r
Cor)ner 0is '0eAue %or B251*->"8 4t <as 5a$able to #.= at .r Cor)ner?s reAuest8
.r Cen$on assume) t0at .r Cor)ner <as in;ol;e) in #.= as .r Cor)ner 0a) tol)
0im t0at 0e tra)e) at t0e time as #o$al .arbella JC* an) 0e assume) t0at #o$al
.arbella JC 0a) somet0in1 to )o <it0 #.=8 .r Cor)ner 0a) tol) 0im t0at 0e* .r
Cor)ner* <oul) be 0an)lin1 t0e le1al si)e o% t0e 5ur'0ase* an) t0at t0ere <as a
(5anis0 la<$er <0o <oul) loo9 a%ter e;er$t0in1 %or .r Cen$on8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
1128 .r Cen$on?s '0eAue %or B251*->" <as 5ai) into #.=?s a''ount at Ban'o )e
(aba)ell8 T0e %un)s <ere 'leare) on 2 +5ril 200>8 T0erea%ter a '0eAue )ate) 2
+5ril 200> <as )ra<n on t0at a''ount %or eDa'tl$ t0e same amount G B251*->" G
si1ne) b$ .r Cor)ner an) 5a$able to t0e soli'itors <0o <ere a'tin1 %or 0im on t0e
5ur'0ase o% .r Cor)ner?s ne< 0ouse* t0e ,erin1s8 T0e 5ur'0ase <as 'om5lete) on
70 +5ril 200>8 4t <as t0at 5a$ment <0i'0 'onstitutes t0e basis o% t0e tra'in1 'laim
a1ainst .r an) .rs Cor)ner8 .r Cor)ner sa$s t0at t0is sum G alon1 <it0 t<o ot0ers
%or B50*000 an) B15*000 G <ere lent to 0im b$ .r Hone to enable 0im to 5a$ %or t0e
,erin1s8 T0at is anot0er to5i' to <0i'0 4 s0all 0a;e to return later8
11-8 4% one o% #.=?s stan)ar) 5ro5ert$ reser;ation s0eets <as e;er 'om5lete) relatin1 to
.r Cen$on?s 5ur'0ase o% no8 2>* it 0as not been )is'lose)8 .r Cen$on sa$s t0at 0e
ne;er sa< one8 +s %or 0is 'ontra't o% sale* .r Cen$on sa$s t0at 0e )i) not 1et it %or
Auite a <0ile8 His )au10ter <as <or9in1 %or .r Cor)ner at t0e time* an) s0e tol) 0er
%at0er t0at 0e s0oul) 1et 0is 'ontra't sorte) out8 4t <as not lon1 a%ter t0at t0at t0e
'ontra't <as sent to 0im8 .r Cen$on t0ou10t t0at b$ t0en it <as 20058 4t <as
su11este) to .r Cen$on t0at it 'oul) not 0a;e been as late as t0at be'ause 0is
)au10ter sto55e) <or9in1 %or .r Cor)ner in F'tober 200>* an) in an$ e;ent t0ere
<as 5ro)u'e) a %aD %rom a (5anis0 la<$er* Estella Torrero Torres* )ate) 15 F'tober
200> 5ur5ortin1 to sen) to .r Cor)ner .r Cen$on?s 'ontra't8 Ho<e;er* t0e 'ontra't
sent <it0 t0e %aD <as not .r Cen$on?s 'ontra't %or 0is 5ur'0ase o% no8 2> +lo0a
#o$al8 W0at <as sent <it0 t0e %aD <ere .r Cen$on?s 'ontra'ts %or t0e 5ur'0ase o%
t0e t<o a5artments at +l)ea Bea'08 T0at is a55arent %rom (a) t0e %aD itsel% <0i'0 is
0ea)e) H.r Cen$on?s 'ontra'tsI* i8e8 in t0e 5lural* (b) t0e %aD sai) t0at it 'onsiste) o%
1- 5a1es (so i% t0e 'o;erin1 5a1e is i1nore)* t0at lea;es 12 5a1es)* (') t0e En1lis0 an)
(5anis0 ;ersions o% t0e +l)ea Bea'0 'ontra'ts 'onsiste) o% 12 5a1es* an) G t0is is t0e
5oint <0i'0 reall$ 'lin'0es it G ()) t0ose 12 5a1es all 0a;e a %aD 0ea)er o% 1> F'tober
200>8
11"8 T0ere is stron1 su55ort %or .r Cen$on?s re'olle'tion t0at 0e )i) not 1et t0e 'ontra't
o% sale until 2005 %rom a messa1e on t0e note5a5er o% W6= s0o<in1 t0at Hi@I at
W6= <as '0asin1 .r Hone?s son %or .r Cen$on?s 'ontra't8 (in'e .r Cor)ner
a'9no<le)1es t0at W6= <as not set u5 until 2005* .r Cen$on 'oul) not 0a;e
re'ei;e) 0is 'ontra't be%ore t0en8 +s it is* t0e 'ontra't <as in t0e same %orm as t0e
'ontra'ts sent to t0e ot0er 'laimants8 Wil'0ester <as name) as t0e 5romoter o% t0e
lan)* but .r Cen$on )i) not 1i;e t0at mu'0 t0ou10t at t0e time8 T0e 'ontra't <as
)ate) 71 .ar'0 200>* an) .r Cen$on 5resume) t0at it 0a) been ba'9)ate) to <0en
0e 0a) 5ai) %or t0e a5artment8 Bot0 .r an) .rs Cen$on <ere name) as t0e
5ur'0asers* an) <0en t0e issue arose as to <0et0er in t0e 'ir'umstan'es .rs Cen$on
s0oul) 0a;e been a 'laimant* .r .i'0ael &e%%eris %or .r an) .rs Cor)ner tol) me
t0at t0is <as not a 5oint 0e <as ta9in1* an) 0e )i) not reAuire an$ amen)ment to be
ma)e to t0e 'laim %orm or t0e 6arti'ulars o% Claim to :oin .rs Cen$on to t0e
5ro'ee)in1s8
1198 &ubse%uent eents8 +lo0a #o$al <as e;entuall$ built* a)mitte)l$ <ell a%ter 70 .ar'0
2005* but it <as ne;ert0eless 'om5lete)* an) t0ose o% t0e 'laimants <0o ;isite) +lo0a
#o$al to ;ie< t0eir in;estment <ere 1enerall$ 5lease) <it0 it8 But t0e$ <ere not
able to o''u5$ t0eir a5artments or sell t0em8 T0e reason* .r Cor)ner tol) t0em* <as
t0at t0e 0abitation li'en'es 0a) not 'ome t0rou108 T0at <as not alto1et0er sur5risin18
o'al o%%i'ials 0a) been im5risone) in 'onne'tion <it0 a s'an)al o;er t0e im5ro5er
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
1rant o% su'0 li'en'es* an) t0e un)erstan)in1 o% some o% t0e 'laimants <as t0at t0eir
issue 0a) been %ro@en b$ 'entral 1o;ernment %or t0e time bein18
1208 Ho<e;er* it later be'ame a55arent t0at t0e 0ol)/u5 <it0 t0e 0abitation li'en'es <as
not t0e real 5roblem8 T0e 5roblem G as t0e 'laimants )is'o;ere) onl$ relati;el$
re'entl$ G <as t0at t0e ne< o<ners o% t0e site* ,u:a* )i) not re'o1nise t0e 'laimants?
interests in t0e a5artments t0e$ 0a) bou10t8 ,u:a <as not a name <0i'0 'ame as a
sur5rise to (ir =eo%%8 He 0a) met t0e men <0o ran ,u:a a number o% times at ;arious
5romotional e;ents or1anise) b$ #.=8 Nor <as t0e name un9no<n to .r Bar9le$*
be'ause 0e re'alls .r Cor)ner 0a;in1 tol) 0im at some sta1e t0at ,u:a <as t0e
'om5an$ res5onsible %or t0e 'onstru'tion o% t0e )e;elo5ment at +lo0a #o$al8
4n)ee)* .r Bar9le$ remembers .r Cor)ner tellin1 0im to<ar)s t0e en) o% 2002 t0at
,u:a 0a) bou10t #.= %rom .r Hone8 He 0a) as9e) .r Cor)ner i% t0at <oul) ma9e
an$ )i%%eren'e to t0eir in;estment* an) .r Cor)ner 0a) sai) t0at it <as a 1oo) t0in1
be'ause ,u:a 0a) assets <ort0 millions8 .r Bar9le$ maintaine) 'onta't <it0 ,u:a
t0erea%ter so t0at 0e 'oul) '0e'9 on t0e 5ro1ress o% t0e 'onstru'tion8 Ho<e;er* b$
t0e summer o% 200-* 0e <as 1ettin1 'on%usin1 re5orts %rom 0is 'onta't at ,u:a about
t0e 0abitation li'en'es* an) 0e )e'i)e) to 1et in tou'0 <it0 (5anis0 e1al (er;i'es*
<0o 0e re'alle) 0el) Wil'0ester?s )ee) o% 'onstitution8 B$ t0en 0e 9ne< t0at .s
Cam5aRa <as #.=?s la<$er* an) 0e remembere) t0at s0e 0a) si1ne) t0e )o'ument
re'or)in1 t0at (5anis0 e1al (er;i'es <ere 0ol)in1 Wil'0ester?s )ee) o% 'onstitution8
Ho<e;er* <0en 0e 'alle) (5anis0 e1al (er;i'es* 0e <as tol) t0at s0e 0a) le%t8
1218 .r Bar9le$ re5orte) t0at to .r Cor)ner8 .r Cor)ner 5ut .r Bar9le$ in tou'0 <it0
Estella Torrero Torres G t0e la<$er <0o 0a) %aDe) to .r Cor)ner .r Cen$on?s
'ontra'ts %or +l)ea Bea'0 in F'tober 200>8 He sai) t0at Estella <oul) Hloo9 a%ter us
an) sort us outI8 .r Cor)ner )i) not tell 0im t0en* as .r Bar9le$ <as to )is'o;er
later* t0at Estella <as ,u:a?s la<$er8 Ho<e;er* )es5ite a number o% e/mails an) 'alls
to Estella* s0e )i) not 1et ba'9 to .r Bar9le$8
1228 4n t0e meantime* bot0 .r #oberts an) .r Cen$on 0a) been s5ea9in1 to .r Cor)ner8
He 0a) tol) .r #oberts t0at t0ere <as a 5roblem <it0 t0e )e;elo5ment o;er an)
abo;e t0e 0abitation li'en'es* an) to .r Cen$on 0e 0a) 'laime) t0at 0e <as :ust as
mu'0 a ;i'tim as e;er$one else an) t0at .r Hone 0a) Hri55e) 0im o%%I as <ell8 T0at
<as t0e %irst time t0at .r Cen$on 0a) 0ear) +lo0a #o$al bein1 'alle) a ri5/o%%8 J5
to t0en* t0e )ela$ 0a) been sim5l$ o;er t0e 0abitation li'en'es* or so 0e 0a) t0ou10t8
1278 .r Bar9le$ <as a<are t0at 0is 5li10t <as s0are) b$ ot0ers* an) not :ust 5eo5le li9e
0im <0o 0a) in;este) in +lo0a #o$al8 4n;estors <0o 0a) bou10t a5artments in ot0er
)e;elo5ments <ere also <orrie)8 6eo5le <ere also 1ettin1 in tou'0 <it0 (ir =eo%% G
no )oubt as one o% t0e 5ubli' %a'es o% #.= G to %in) out <0at <as 1oin1 on8 +t t0at
sta1e* .r Bar9le$ )i) not t0in9 t0at 0e an) ot0ers li9e 0im 0a) been t0e ;i'tim o% a
%rau)* still less t0at .r Cor)ner <as im5li'ate) in it8 T0e$ <ere :ust %rustrate) t0at
t0e 'onstru'tion 0a) been 'om5lete) but t0e$ 0a) not $et 1ot t0eir a5artments8
E;entuall$* t0e soli'itor <0o re5resents t0e 'laimants in t0ese 5ro'ee)in1s* (iob0an
omasne$* <as instru'te)8 (0e 0as sin'e mo;e) %irms but not0in1 turns on t0at8 +
meetin1 too9 5la'e <it0 0er8 .r Bar9le$ 0a) <ante) .r Cor)ner to 'ome to t0at
meetin1* but 0e sai) 0e 'oul) not8 He 9ne< .r Bar9le$ <as 1oin1* an) 0e a1ree) to
'o;er 0al% o% .r Bar9le$?s le1al 'osts8 .r Bar9le$ 0a) as9e) 0im to )o t0at be'ause
it <as .r Cor)ner <0o 0a) 1ot .r Bar9le$ into t0is mess8 .r Cor)ner also sai) t0at
0e <oul) 'ontinue to tr$ an) enlist Estella?s 0el58 E;entuall$ it <as )e'i)e) to %orm
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
an a'tion 1rou5 <0i'0 <oul) 'on'entrate :ust on +lo0a #o$al* an) t0at <as <0en .r
Cor)ner 5ut .r #oberts an) .r Cen$on in tou'0 <it0 .r Bar9le$8 4t <as .r
Cen$on <0o brou10t .r 4nno'ent in8 ater on* .r Cor)ner tol) .r Bar9le$ a
number o% times t0at 0e <ante) to meet .s omasne$8 (0e )e'line) to meet 0im
unless 0e <as se5aratel$ re5resente)8 4 mention t0ese %a'ts onl$ be'ause .r Cor)ner
0as 'laime) t0at 0e <as one o% t0e 5eo5le 1i;in1 t0e 'laimants? soli'itors instru'tions
G a)mitte)l$ in)ire'tl$ t0rou10 .r Bar9le$8
12>8 4n &anuar$ 2009* .r Cor)ner tol) .r Bar9le$ t0at t0e$ 0a) been in;ite) to 6ortu1al
to meet re5resentati;es o% ,u:a8 .r Cor)ner sai) t0at ,u:a <ante) to meet 0im
be'ause 0e 0a) sol) man$ units in a )e;elo5ment 'alle) os Cabanos* an) no< t0at
t0e units 0a) been built* ,u:a <as loo9in1 %or t0e balan'e o% t0e 5ur'0ase 5ri'e8 T0e
trouble <as t0at 5ro5ert$ 5ri'es 0a) %allen b$ t0en* an) man$ o% t0e 5ur'0asers <ere
bein1 )i%%i'ult about 'om5letin18 ,u:a <ante) to enlist t0eir 0el5 in 1ettin1 t0e
relu'tant 5ur'0asers to 5a$ u5* an) <ere 5re5are) to 5a$ %or t0eir %li10ts an)
a''ommo)ation8 .r Bar9le$ 9ne< about t0e )e;elo5ment at os Cabanos be'ause
0e 0a) intro)u'e) some o% 0is 'lients to t0e )e;elo5ment* an) 0a) earne) 'ommission
0imsel% <0i'0 .r Cor)ner 0a) 5ai) out o% 0is o<n 'ommission8 .r Cor)ner tol) .r
Bar9le$ t0at 0e t0ou10t t0at t0e$ mi10t be able to use t0e meetin1 as a ne1otiatin1
ta'ti' o;er t0e +lo0a #o$al a5artments8 .r Bar9le$ a1ree) to 1o* an) t0e meetin1
too9 5la'e on 29 &anuar$ 20098 Estella <as t0ere* an) t0at <as <0en .r Bar9le$
)is'o;ere) t0at s0e 0a) been re5resentin1 ,u:a all alon18
1258 T0e )eal <0i'0 ,u:a 5ut to .r Cor)ner an) .r Bar9le$ <as t0at i% t0e$ mana1e) to
arran1e mort1a1es %or an a1ree) number o% t0e 5eo5le <0o 0a) a1ree) to bu$
a5artments at os Cabanos* ,u:a <oul) eD'0an1e no8 52 +lo0a #o$al (t0e a5artment
<0i'0 .r Cor)ner an) .r Bar9le$ 0a) bou10t to1et0er) %or one at os Cabanos8 But
%or 5resent 5ur5oses* <0at is rele;ant is t0at <0en t0e 5osition o% ot0er 5eo5le <0o
0a) bou10t a5artments at +lo0a #o$al <as brou10t u5* ,u:a sim5l$ o%%ere) to sell
t0em a5artments at os Cabanos at L>0*000 less t0an t0e usual 5ri'e8 .r Bar9le$ )i)
not re1ar) t0at o%%er as remotel$ attra'ti;e* an) 0e tol) ,u:a an) .r Cor)ner t0at 0e
<as not intereste) in it8 4t <as su11este) to .r Bar9le$ t0at 0e 0a) been less t0an
%ran9 in %ailin1 to re%er in 0is <itness statements to t0e 5ersonal )eal <0i'0 0e an) .r
Cor)ner 0a) been o%%ere)8 4t ma$ 0a;e been better i% .r Bar9le$ 0a) mentione) t0at
G as .r Bar9le$ 0imsel% a'9no<le)1e) G but 0is %ailure to )o so )oes not* to m$
min)* )ama1e 0is reliabilit$ an) 're)ibilit$ as a <itness in an$ <a$8
1228 3inall$* .r Bar9le$ eD5laine) 0o< a 'o5$ o% t0e a1reement bet<een +@ul an) ,u:a
'ame into t0e 'laimants? 0an)s8 +%ter .r Bar9le$ 0a) eD5resse) 0is o<n 'on'erns
about +lo0a #o$al to .r Cor)ner* .r Cor)ner 0a) tol) 0im t0at t0ere <ere t<o
'ontra'ts bet<een .r Hone an) ,u:a relatin1 to +lo0a #o$al8 Jn)er one o% t0em*
,u:a <as su55ose) to trans%er 9 a5artments ba'9 to .r Hone a%ter t0e )e;elo5ment
0a) been 'om5lete)8 Jn)er t0e ot0er* ,u:a <as su55ose) to trans%er 158 T0e t<o o%
t0em 0a) raise) t0e issue <it0 Estella at t0e meetin1 on 29 &anuar$ 2009* an) Estella
subseAuentl$ a1ree) to meet .r Cor)ner to )is'uss it8 .r Cor)ner subseAuentl$ tol)
.r Bar9le$ t0at at t0at se'on) meetin1 Estella 0a) 'on%irme) t0at s0e 0a) seen an
a1reement relatin1 to 15 a5artments* an) t0at i% s0e )i) not 0a;e a 'o5$ o% it 0ersel%*
s0e <oul) tr$ to 1et one %rom .r Hone8 .r Cor)ner sai) t0at 0e 0a) as9e) 0er to
sen) a 'o5$ o% it to .r Bar9le$* an) .r Bar9le$ 1ot it %rom 0er on 1- +5ril 20098
T0at <as t0e a1reement re%erre) to at [7>] abo;e8 T0e a1reement* o% 'ourse* )i) not
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
reser;e 15 a5artments to +@ul8 4t reser;e) 2>* but t0at <as 15 more t0an t0e
a1reement re%erre) to in t0e lan) re1ister8
3. Mr Cordners account
12-8 .r Cor)ner <as in t0e <itness boD %or o;er siD )a$s8 ,urin1 t0at time 4 0a) 5lent$
o% o55ortunities to assess <0at 0e <as li9e8 He is not a man o% 'onsi)erable
intelli1en'e8 4n)ee)* 0e )es'ribe) 0imsel% as Hnot t0e bri10test bulb in t0e boDI8 He
)oes not 0a;e a 5arti'ularl$ 1oo) 'omman) o% En1lis0* an) uses ina55ro5riate
s0ort0an) to 'on;e$ i)eas be'ause 0e 'annot %ormulate t0em 5ro5erl$ 0imsel%8 He
)oes not t0in9 5arti'ularl$ lo1i'all$8 He <as not 5reten)in1 to be )uller t0an 0e
reall$ <as <0en 0e 0a) )i%%i'ult$ %ollo<in1 some o% t0e t0in1s 0e <as bein1 as9e)
an) 1i;in1 a strai10t ans<er to a strai10t Auestion8 +s .r &e%%eris sai)* 0e <as a
salesman: $ou sim5l$ 0a) to <in) 0im u5 an) 0e <oul) be ;er$ 1oo) at re5eatin1
<0at 0e <as tol) to best e%%e't8 T0e )i%%i'ult$ 0e 0a) in )istin1uis0in1 bet<een
0imsel% an) .6 or bet<een .r Hone an) #.= <as not .a'0ia;ellian8 T0e trut0
is t0at 0e re1ar)e) t0em as t0e same t0in18 His a''ount o% 0is )ealin1s <it0 t0e
'laimants 0as to be seen in t0at li10t8
12"8 4 bear in min) t<o ot0er t0in1s8 3irst* no/one?s re'all is 5er%e't* an) t0e )etaile)
nature o% some o% t0e to5i's .r Cor)ner <as as9e) about <ere su'0 t0at t0ere <ere
man$ t0in1s t0at 0e 'oul) not remember8 T0at <as 5arti'ularl$ a55arent <0en 0e
<as Auestione) about t0e t0in1s <0i'0 t0e 'laimants sa$ s0o< t0at <0en it 'ame to
t0e s5e'ial )eal t0e relations0i5 bet<een 0im an) .r Hone <as a9in to 5artners0i58 4
0a;e en)ea;oure) to re%le't t0at in m$ o;erall assessment o% .r Cor)ner?s 're)ibilit$
an) reliabilit$ as a <itness8 (e'on)l$* .r Cor)ner <as )enie) t0e bene%it o%
e;i)en'e %rom t<o o% 0is <itnesses8 Fne o% t0em* (te;e #o'9all* 0a) been <arne)
o%%* 0e sai)8 T0e ot0er* Claire Cam5bell* .r Hone?s %ormer <i%e* 0a) abru5tl$
se;ere) 'onta't <it0 .r Cor)ner ten )a$s or so be%ore 0e 1a;e e;i)en'e8 T0at le)
.r Cor)ner to belie;e t0at s0e ma$ 0a;e been H1ot atI as <ell8 4 <as not as9e) to
rea) t0eir <itness statements* t0ou10 5arts o% .s Cam5bell?s <itness statement <ere
5ut to .r Cor)ner <0en 0e <as 'ross/eDamine)* an) to t0e eDtent t0at 0e a1ree) <it0
0er e;i)en'e* 0e a)o5te) it8
1298 +t t0e 'ore o% .r Cor)ner?s 'ase is t0e su11estion t0at <0en t0e 'laimants )is'o;ere)
t0at t0e$ <ere not 1oin1 to be able to ser;e .r Hone <it0 t0e 5ro'ee)in1s or en%or'e
an$ :u)1ment a1ainst 0im or an$ o% 0is 'om5anies <0i'0 <ere <ort0 5o<)er an)
s0ot* t0e$ )e'i)e) in t0eir )es5eration to 1o a%ter 0im8 T0e 'ase <0i'0 0as been
'obble) to1et0er a1ainst 0im G b$ attributin1 a %e< t0in1s 0e )i) not sa$ G o<es mu'0
to t0e %a't t0at t0e 'laimants t0in9 0e 0as assets <0i'0 'an be use) to satis%$ an$
:u)1ment a1ainst 0im* e;en t0ou10 0e <as no more t0an a bit 5la$er in t0is )rama8
1708 .r Cor)ner sa$s t0at li9e e;er$one else 0e <as 'om5letel$ ta9en in b$ .r Hone8
T0e man <as Hin're)ibl$ '0armin1 an) 5lausibleI8 4 )o not )oubt t0at at all8 .r
Cor)ner <oul) not 0a;e been t0e %irst 5erson to 0a;e been ta9en in b$ 0im* an) 4 am
sure t0at (ir =eo%% <as as <ell8 .r Cor)ner sa$s t0at 0e )i) not 9no< about .r
Hone?s 5re;ious liti1ation* an) <0en 0e on'e as9e) .r Hone <0$ 0is son .i'0ael
use) t0e surname .et'al%* not Hone* .r Hone tol) 0im t0at 0is* .r Hone?s*
ste5%at0er 0a) treate) 0im better t0an 0is real %at0er* an) t0at 0e 0a) t0ere%ore use) 0is
ste5%at0er?s name sometimes8 6resumabl$ 0is son 0a) )one t0e same t0in18 4t ma$
be* t0ou10* t0at it s0oul) 0a;e o''urre) to .r Cor)ner t0at somet0in1 <as not Auite
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
ri10t about 0im8 4% #.= <as as su''ess%ul as .r Cor)ner t0ou10t* %or eDam5le* <0$
<as .r Hone so relu'tant %or t0ere to be an$ re%eren'e to 0im in its bro'0uresP T0e
i)ea t0at 0e 0a) )e'i)e) to ta9e a ba'9 seat an) let t0ose <0o 0a) )one all t0e 0ar)
<or9 ta9e t0e 're)it G <0i'0 is <0at .r Cor)ner sa$s <as t0e reason .r Hone 1a;e
0im G )oes not rin1 true8 But %or t0e moment it is ne'essar$ to summarise .r
Cor)ner?s a''ount o% 0is )ealin1s <it0 t0e 'laimants* bearin1 in min) t0e t0in1s t0e$
sa$ 0e sai) to 1et t0em on boar)* t0ou10 %or t0e most 5art it <ill onl$ be ne'essar$ to
summarise t0ose 5arts o% .r Cor)ner?s e;i)en'e <0i'0 a))ress t0e t0in1s t0e$
attribute) to 0im8
1718 &ir Geoffs promotional agreement8 .r Cor)ner %irst met (ir =eo%% at #.=?s o%%i'e
in ou10ton <0en (ir =eo%% <ent t0ere to )is'uss 0is 5romotional a1reement <it0 .r
Hone8 .r Cor)ner 0a) onl$ been in;ol;e) <it0 #.= %or a %e< mont0s b$ t0en* an)
t0e i)ea o% 1ettin1 (ir =eo%% to en)orse #.=?s )e;elo5ments 'ame %rom .r Hone
an) .r #o'9all8 .r Cor)ner sa$s t0at 0e <as 5eri50eral to t0e meetin18 He <as
1oin1 in an) out o% t0e o%%i'e <0ile it <as 1oin1 on8 4n s0ort* 0is 'ase <as t0at 1ettin1
(ir =eo%% in as one o% #.=?s ambassa)ors <as )o<n to .r Hone8 He re'alls (ir
=eo%% 1oin1 to (5ain <it0 .r Ho5le$* an) seein1 t0em <0ile t0e$ <ere t0ere* t0ou10
0e <oul) be ;er$ sur5rise) i% it 0a) not been .r Hone <0o 0a) s0o<n t0em aroun)8
.r Cor)ner <as 5rett$ sure t0at 0e 0a) not )one so8 He sa$s t0at i% 0e 0a) s0o<n
t0em aroun)* 0e <oul) 0a;e remembere) it: (ir =eo%%* 0e sai)* <as a man <0o 0e
<as in a<e o%8
1728 The sale of no. )# Aloha Ro(al to &ir Geoff and Mr Hople(8 .r Cor)ner )i) not )eal
in 0is e;i)en'e <it0 t0e )i%%eren'e in re'olle'tion bet<een (ir =eo%% an) .r Ho5le$
about <0en t0e a;ailabilit$ o% a5artments at +lo0a #o$al <as %irst )is'usse) G <0en
(ir =eo%% an) .r Ho5le$ <ere in (5ain* or later <it0 t0em a%ter t0e$ 0a) returne) to
En1lan)8 But on t0e assum5tion t0at t0e issue <as %irst raise) <it0 (ir =eo%% a%ter (ir
=eo%% 0a) returne) to En1lan)* .r Cor)ner t0in9s t0at (ir =eo%% 0a) alrea)$ ma)e u5
0is min) about bu$in1 one o% t0e a5artments at +lo0a #o$al %rom 0is 'on;ersations
<it0 .r Hone8 .r Cor)ner <as sim5l$ reiteratin1 <0at .r Hone 0a) 5re;iousl$ tol)
(ir =eo%%8 +s it <as* .r Cor)ner?s re'olle'tion o% <0at 0e tol) (ir =eo%% <as t0at 0e
0a) resered 10 a5artments at +lo0a #o$al8 He )i) not sa$ t0at 0e 0a) bought 10
a5artments 0imsel%* or t0at 0e <as able to Hsell t0em onI8 +t t0e time <0en 0is
<itness statement <as 5re5are)* .r Cor)ner <as un)er t0e im5ression t0at it <as to
(ir =eo%% t0at 0e <as su55ose) to 0a;e sai) t0at 0e 0a) sold some o% t0e a5artments
to members o% 0is %amil$* an) 0is e;i)en'e <as t0at 0e 0a) sim5l$ tol) (ir =eo%% t0at
0e 0a) offered some o% t0e a5artments to members o% 0is %amil$8 Ho<e;er* 0e )i) not
)en$ t0at 0e 0a) tol) (ir =eo%% t0at t0e a5artments 0a) a list 5ri'e o% L>->*"00* but
t0at t0e$ <ere a;ailable at L29"*000* 5ro;i)e) t0at t0e <0ole o% t0e 5ur'0ase 5ri'e
<as 5ai) u5 %ront8 4t <as be'ause no/one in 0is %amil$ 0a) been in a 5osition to )o
t0at t0at none o% t0em 0a) bou10t an$ o% t0e 10 a5artments8 He tol) (ir =eo%% t0at it
<as a 1reat )eal* an) t0at 0e <as in;estin1 in +lo0a #o$al 0imsel%8
1778 Fn t0e ot0er 0an)* on t0e assum5tion t0at t0e a;ailabilit$ o% a5artments at +lo0a
#o$al 0a) %irst been raise) <0en .r Cor)ner sa< (ir =eo%% an) .r Ho5le$ in (5ain*
.r Cor)ner 'oul) not re'all <0et0er 0e 0a) tol) t0em t0at #.= 0a) o<ne) +lo0a
#o$al (or +l)ea Bea'0 %or t0at matter)* but sin'e .r Hone 0a) sai) t0at 0e o<ne)
#.=* 0e t0in9s t0at 0e ma$ <ell 0a;e sai) t0at #.= o<ne) t0e lan) an) <as 1oin1
to )e;elo5 it8 He )i) not reall$ )istin1uis0 bet<een #.= an) .r Hone8 (ometimes
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
0e sai) t0at .r Hone o<ne) t0e lan) an) <oul) be )e;elo5in1 it8 (ometimes 0e sai)
t0at #.= <oul) be8 T0e t<o <ere inter'0an1eable8 W0at 0e )enies* t0ou10* is t0at
0e tol) t0em t0at all t0e a5artments at +lo0a #o$al (an) +l)ea Bea'0) 0a) alrea)$
been sol) o%%/5lan8
17>8 +s %or .r Ho5le$?s 'laim t0at .r Cor)ner 'alle) 0im some time a%ter t0eir tri5 to
(5ain an) tol) 0im t0at 0e <as no< able to o%%er an a5artment at +lo0a #o$al be'ause
t0e sale o% one o% t0e 10 a5artments 0e 0a) Hta9enI t0ere 0a) %allen t0rou10* .r
Cor)ner sa$s t0at 0e )i) not 0a;e t0is 'on;ersation <it0 .r Ho5le$8 .r Ho5le$ 0as
'on%use) 0im %or .r Hone8 Ha;in1 sai) t0at* .r Cor)ner sa$s t0at 0e 9no<s t0at 0e
sai) t0at to someone G 5er0a5s to .r Bar9le$ but 0e 'oul) not be sure G but t0at 0e
'oul) not re'all <0et0er 0e 0a) sai) it to .r Ho5le$ at some sta1e8 .r Cor)ner sa$s
t0at in %a't one o% t0e 10 sales 0a) %allen t0rou108 T0e 'ir'umstan'es o% t0at 0a) been
t0at .r Hone 0a) tol) 0im t0at 0e <oul) ta9e ba'9 an$ o% t0e 10 a5artments at +lo0a
#o$al <0i'0 <ere 'om5rise) in t0e s5e'ial )eal* but <0i'0 .r Cor)ner <as unable to
sell8 4n t0e e;ent* .r Hone too9 ba'9 %i;e o% t0e a5artments an) sol) t0em to Bernar)
Bro1an (<0o <as )es'ribe) in #.=?s 2005 bro'0ure as its 5ro:e'ts )ire'tor)8 4t <as
t0e sale to .r Bro1an o% one o% t0ose %i;e a5artments <0i'0 0a) %allen t0rou10* an)
.r Hone 0a) release) t0at a5artment ba'9 to .r Cor)ner8
1758 T0e 'laimants? 'ase is t0at t0is eD5lanation %or <0at .r Cor)ner sai) to .r Bar9le$
(or 5er0a5s .r Ho5le$) is untrue8 Not onl$ <as it in'onsistent <it0 <0at .r Cor)ner
0a) sai) in 0is se'on) <itness statement about 0im bein1 unable to t0in9 o% a reason
<0$ 0e <oul) 0a;e sai) to an$one at t0e time t0at t0ere <as :ust t0e one a5artment
a;ailable8 But in a))ition t0e 'ontra't o% sale %or t0e %i;e 5ro5erties <0i'0 .r Bro1an
bou10t %rom +@ul s0o<e) (a) t0at t0e 'ontra't o% sale <as )ate) 3ebruar$ 2002* i8e8
more t0an t<o $ears later* an) (b) t0at t0e %i;e 5ro5erties 'om5rise) > 5ent0ouses an)
onl$ one a5artment8 .r Cor)ner a'9no<le)1e) t0at none o% t0e 5ent0ouses at +lo0a
#o$al 0a) been in'lu)e) in t0e s5e'ial )eal* <0i'0 relate) onl$ to 10 a5artments8 Not
to 5ut too %ine a 5oint on it* t0e 'laimants? 'ase is t0at .r Cor)ner <as l$in1 <0en 0e
sai) t0at one o% t0e 10 sales 0a) %allen t0rou108 He <as tr$in1 to 1i;e t0e im5ression
t0at t0e$ 0a) been sellin1 <ell* an) t0at t0e uneD5e'te) a;ailabilit$ o% one o% t0e
a5artments <as an o55ortunit$ <0i'0 s0oul) not be misse)8 (o <0en 0e <as
'on%ronte) <it0 t0is 'ontra't o% sale* .r Cor)ner a''e5te) t0at t0e$ 'oul) not 0a;e
been an$ o% t0e %i;e a5artments <0i'0 0e 0a) 'laime) .r Hone 0a) ta9en %rom 0im8
+n) as %or <0at 0e 0a) sai) in 0is <itness statement* .r Cor)ner sai) t0at 0e must
0a;e 1ot 'on%use) about <0en 0e <as su55ose) to 0a;e sai) t0at t0ere <as :ust t0e
one a5artment a;ailable8
1728 .r Cor)ner )enies t0at 0e tol) .r Ho5le$ t0at 0is an) (ir =eo%%?s mone$ <oul) be
9e5t in a se5arate a''ount* or t0at 0e tol) (ir =eo%% t0at it <oul) be 0el) in an es'ro<
a''ount an) returne) to t0em i% t0e )e;elo5ment <as not 'om5lete)8 4% 0e tol) t0em
an$t0in1 about 0o< t0eir mone$ <oul) be 5rote'te)* it <as sim5l$ t0at t0ere <oul)
be a ban9 1uarantee in 5la'e8 .r Cor)ner )i) not 9no< <0at t0e reAuirements o%
(5anis0 la< <ere about (a) 9ee5in1 t0e %un)s o% 5ur'0asers <0o <ere bu$in1
5ro5erties o%%/5lan se5arate %rom t0e )e;elo5ers? o<n %un)s* or (b) some me'0anism
bein1 in 5la'e <0i'0 <oul) 5ro;i)e a)eAuate 5rote'tion %or t0e 5ur'0asers? %un)s8
Ho<e;er* 0is e;i)en'e <as t0at bot0 .r Hone an) ($l;ia Cam5aRa 0a) tol) 0im t0at
a ban9 1uarantee <as in 5la'e <0i'0 <oul) enable 5ur'0asers to 1et t0eir mone$ ba'9
i% t0e a5artments t0e$ <ere bu$in1 <ere not built8 He a'9no<le)1e) t0at 0e 0a)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
ne;er a'tuall$ seen t0at 1uarantee* but 0e sai) t0at t0is <as a matter to be le%t to t0e
la<$ers8
17-8 T0e 'laimants? 'ase is t0at .r Cor)ner 9ne< all alon1 t0at t0ere <oul) not be a ban9
1uarantee in 5la'e8 T0at is sai) to be borne out b$ a %aD <0i'0 0e sent to Estella in t0e
earl$ 0ours o% t0e mornin1 o% 2" ,e'ember 200> reAuestin1 t0at %i;e o% t0e 'laimants?
'ontra'ts be Hnotarise) at t0e notar$I (5resumabl$ t0e 5ubli' notar$ so t0at t0e$ 'oul)
be en%or'eable)* in or)er t0at eit0er (a) an Hembar1oI 'oul) be 5ut on t0em* or (b)
,u:a 'oul) trans%er t0em )ire'tl$ to t0e 'laimants as t0e 'laimants 0a) 5ai) .r Hone
in %ull %or t0em8 W0at is sai) on be0al% o% t0e 'laimants is t0at .r Cor)ner must 0a;e
realise) t0at t0eir interests in t0e 5ro5erties <ere not 5rote'te) %or .r Cor)ner to 0a;e
su11este) t0at an embar1o (<0i'0 5resumabl$ 5re;ente) t0em %rom bein1 )is5ose)
o%) s0oul) be obtaine)8 T0e a5artments to <0i'0 t0is %aD relate) <ere .r Cor)ner?s
o<n a5artment (no8 52)* t0e one 0e <as bu$in1 <it0 .r Bar9le$ (no8 52)* .r
4nno'ent?s (no8 22)* .r Cen$on?s (no8 2>) an) .r an) .rs #oberts? (no8 2")8 .r
Cor)ner?s eD5lanation %or ta9in1 t0ese ste5s <as t0at b$ t0en 0e 0a) be1un to )istrust
.r Hone8 Not onl$ <ere t0ere )ela$s in t0e 'onstru'tion o% +lo0a #o$al* but e;en
<0en it <as 'om5lete)* .r Hone (as <ell as re5resentati;es o% ,u:a an) lo'al
la<$ers) 9e5t on tellin1 0im t0at t0ere <as a )ela$ in t0e issue o% t0e 0abitation
li'en'es8 (o 0e :ust <ante) to ma9e sure t0at t0e 'laimants <ere 5rote'te) until t0e
0abitation li'en'es 'ame t0rou108 T0e sen)in1 o% t0is %aD )i) not mean* 0e sai)* t0at
0e 9ne< t0at ban9 1uarantees <ere not in 5la'e8 4n)ee)* t0e )ate an) time on t0e %aD
0ea)er <ere ina''urate* be'ause t0e %aD ma'0ine 0e 0a) <as an ol) one* an) it <oul)
1et t0e )ate an) time <ron18
17"8 +s %or la<$ers* .r Cor)ner )i) not )eal s5e'i%i'all$ <it0 <0at bot0 (ir =eo%% an) .r
Ho5le$ 'laim .r Cor)ner sai) about .r Cor)ner arran1in1 la<$ers %or t0em8 But 0is
e;i)en'e <as t0at 0e in%orme) all t0e 'laimants as <ell as ot0er in;estors t0at t0e$
'oul) eit0er instru't t0eir o<n la<$ers to a't %or t0em G <0et0er it <as a la<$er in
(5ain or a soli'itor in En1lan) G or t0e$ 'oul) use (5anis0 e1al (er;i'es <0o <ere
(5anis0 la<$ers <it0 <0om 0e 'oul) 5ut t0em in tou'08 .r Cor)ner <as* o% 'ourse*
a<are o% t0e im5ortan'e o% le1al a);i'e8 +%ter all* in #.=?s 200> bro'0ure 0e 0a)
sai) t0at 0e 0a) eD5erien'e) Ht0e )eli10ts o% se;eral (5anis0 estate a1ents an)
la<$ersI <0en 0e 0a) %irst in;este) in 5ro5ert$ in (5ain8 He 0a) en)e) u5 H)a@e)
an) 'on%use)I8 T0at <as <0$ #.=?s 200> an) 2005 bro'0ures bot0 sai) t0at one o%
t0e 1ol)en rules about bu$in1 a 5ro5ert$ in (5ain <as to %in) a la<$er to 1i;e le1al
a);i'e an) assistan'e8 #.=?s bro'0ure re%erre) to (5anis0 e1al (er;i'es bein1 able
to 5ro;i)e Hs5e'ialist le1al ser;i'esI* an) it in'lu)e) a %et'0in1 50oto1ra50 o% .s
Cam5aRa8 4n)ee)* (5anis0 e1al (er;i'es <as in'or5orate) as (5anis0 e1al
(er;i'es ( on 70 ,e'ember 2007* <it0 .s Cam5aRa as its a)ministrator8 .r
Cor)ner sa$s t0at 0e ne;er tol) an$ o% t0e 'laimants t0at t0e$ )i) not nee) to bot0er
about obtainin1 in)e5en)ent le1al a);i'e be'ause 0e 'oul) arran1e %or t0at on t0eir
be0al%* or t0at t0e$ )i) not nee) a la<$er at t0at sta1e* or t0at a (5anis0 la<$er 0e
9ne< <oul) loo9 a%ter t0e le1al %ormalities %or t0em* or t0at 0e* .r Cor)ner* <oul)
be 0an)lin1 t0e le1al si)e o% t0in1s8
1798 .r Cor)ner a'9no<le)1e) t0at <it0 t0e eD'e5tion o% .r Bar9le$ an) .r 6o<er* 0e
)i) not attem5t to %in) out <0et0er an$ o% t0e 'laimants 0a) re'ei;e) le1al a);i'e G
<0et0er %rom (5anis0 e1al (er;i'es or an$ ot0er la<$er in (5ain or soli'itor in
En1lan)8 He 0a) not o%%ere) to intro)u'e t0ose o% t0e 'laimants <0o 0e a'tuall$ sa<
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
in (5ain to .s Cam5aRa* e;en t0ou10 s0e 0a) a )es9 in one o% #.=?s o%%i'es in
6uerto Banus8 4t <oul)* o% 'ourse* 0a;e been )i%%i'ult %or t0em to 1et le1al a);i'e i%
t0e$ <ere bein1 as9e) G as <as t0e 'ase G to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e
be%ore la<$ers 'oul) 0a;e '0e'9e) t0at #.= <as able to 5ass 1oo) title to t0e
a5artments* an) be%ore t0e$ e;en re'ei;e) t0e 'ontra'ts o% sale8 4n)ee)* t0e
'laimants? 'ase is t0at b$ sa$in1 t0at 0e 'oul) arran1e %or t0e le1al si)e o% t0in1s* .r
Cor)ner <as )is'oura1in1 t0em %rom ta9in1 le1al a);i'e be'ause 0e 9ne< t0at
la<$ers <oul) )is'o;er t0at #.= )i) not 0a;e title to t0e lan)8
1>08 .r Cor)ner )i) not )eal in 0is e;i)en'e s5e'i%i'all$ <it0 t0e 5ro5ert$ reser;ation
s0eet %or no8 90 +lo0a #o$al <0i'0 (ir =eo%% si1ne) or t0e 'ontra't o% sale <0i'0 0e
an) .r Ho5le$ e;entuall$ re'ei;e)8 His e;i)en'e <as t0at t0e 5ro5ert$ reser;ation
s0eet <as t0e %irst )o'ument <0i'0 'ame into eDisten'e* an) t0e salesman <oul) t0en
sen) it to .r Hone or .s Cam5aRa8 (in'e 0e <as t0e rele;ant salesman in t0e 'ase o%
t0e a5artments 'om5rise) in t0e s5e'ial )eal* it <oul) 0a;e been 0im <0o <oul) 0a;e
sent t0em to .r Hone or .s Cam5aRa8 +s %or t0e 'ontra'ts o% sale* 0e <as not
in;ol;e) in )ra%tin1 t0em8 T0e$ <oul) 0a;e been )ra%te) b$ .s Cam5aRa8
(ometimes 0e ne;er e;en sa< t0em8 He <oul) G or at least mi10t G see t0em i% t0e$
<ent to .6 %or on<ar) transmission to t0e 5ur'0aser* but sometimes t0e$ <ent to
t0e 5ur'0aser )ire't8
1>18 .r Cor)ner )i) not 'omment in 0is e;i)en'e on Wil'0ester bein1 name) as t0e
5romoter o% t0e lan) in t0e 'ontra't o% sale sent to (ir =eo%% an) .r Ho5le$8 But as
<e s0all see* Wil'0ester <as name) as t0e 5romoter o% t0e lan) in t0e 'ontra't o% sale
o% no8 52 +lo0a #o$al <0i'0 .r Cor)ner bou10t t0rou10 6a))in1ton 6ro5erties 4n'*
an) 0e sim5l$ assume) t0at Wil'0ester <as one o% .r Hone?s 'om5anies8 He 0a)
ne;er 0ear) o% eit0er +@ul or =ros;enor* an) alt0ou10 +@ul 0a) been re%erre) to in t0e
2007 bro'0ure an) e;en )es'ribe) on t0e 5lans 'ontaine) in t0e bro'0ure as t0e
propriedad o% t0e lan)* 0e 0a) not 5i'9e) t0e re%eren'es to +@ul u5 an) <oul) not
0a;e 9no<n <0at propriedad (<0i'0 means 5ro5rietor) meant8 +s %or 0is
'ommission* .r Cor)ner belie;es t0at 0e <as 5ai) 0is 'ommission o% L">*700 %rom
t0e sale o% no8 90 +lo0a #o$al to (ir =eo%% an) .r Ho5le$8
1>28 The sale of no. +# Aloha Ro(al to &ir Geoff and Mr *o'er8 .r Cor)ner 'laims t0at
0e )i) not H5ressI (ir =eo%% to in;est in anot0er a5artment* but 0e re'alls meetin1 (ir
=eo%% an) .r 6o<er at (el%ri)1es Hotel* an) )is'ussin1 t0eir 5ossible 5ur'0ase o%
anot0er %lat at +lo0a #o$al8 He )enies tellin1 t0em t0at some o% t0em 0a) been ta9en
u5 b$ members o% 0is %amil$8 He a'9no<le)1e) t0at 0e 0a) s5o9en o% 0a;in1
H5ur'0ase)I t0e 10 a5artments 0imsel% in 0is re5l$ to t0e Auestion as9e) b$ .r
6o<er?s soli'itors (<0en 0e 0a) onl$ reser;e) t0em so t0at t0e$ 'oul) not be
mar9ete) b$ an$one else)* an) 0e attribute) t0at to a mista9e on t0e 5art o% 0is
se'retar$ an) to 0is o<n %ault in not '0e'9in1 t0e letter 5ro5erl$8 (0e 0a)
misinter5rete) 0o< s0e <as to re5l$ to t0e Auer$* an) 0e 0a) not 5i'9e) u5 0er error8
4n)ee)* t0e lan1ua1e o% t0e ans<er G in 5arti'ular t0e <or) H<asI G su11este) t0at t0e
10 a5artments 0a) alrea)$ been laun'0e) at L>->*"008 .r Cor)ner sai) t0at 0is
se'retar$ must 0a;e use) t0e <or) H<asI be'ause t0e 2007 bro'0ure 0a) alrea)$ been
5ublis0e) b$ t0en* an) t0at s0o<e) t0at t0e laun'0 5ri'e <as to be L>->*"008
1>78 .r Cor)ner )oes not )is5ute t0at 0e earne) 'ommission o% L">*700 on t0e sale no8 20
+lo0a #o$al to (ir =eo%% an) .r 6o<er8 4t <ill be re'alle) t0at 0e use) L22*-00 o% it
to 5a$ %or 0is 0al%/s0are o% no8 52 +lo0a #o$al* an) in%orme) .r Hone t0at 0e <as
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
1oin1 to in;oi'e 0im %or t0e balan'e* t0ou10 as <e s0all see it <as .6 <0o in;oi'e)
#.= %or t0e balan'e8
1>>8 &ir Geoffs loan of ,$-#.###8 4n .a$ 200>* .r Hone as9e) .r Cor)ner <0et0er 0e
<oul) be 5re5are) to len) 0im B750*000* an) in return 0e <oul) 5a$ .r Cor)ner
B595*000 b$ ,e'ember 20058 .r Hone o%%ere) a 5ost/)ate) '0eAue as se'urit$ <0i'0
.r Hone sai) <as 9no<n as a pagar/* an) t0at it <as 'riminal o%%en'e in (5ain to
)is0onour su'0 a '0eAue8 .r Cor)ner a'9no<le)1e) t0at t0e attra'ti;eness o% t0e
o%%er G li9e t0e 'ommission to be earne) on t0e 10 a5artments at +lo0a #o$al G
s0oul) 0a;e set alarm bells rin1in1* but it )i) not* an) .r Cor)ner a1ree) to 'onsi)er
.r Hone?s 5ro5osal8
1>58 .r Cor)ner t0ou10t seriousl$ about t0e 5ro5osal* an) e;en as9e) .r Hone i% 0e <as
5re5are) to release )e5osits <0i'0 .r Cor)ner 0a) 5ut )o<n on a5artments at +l)ea
Bea'0 an) +lo0a #o$al8 .r Cor)ner 'laims t0at .r Hone <as initiall$ a1reeable to
t0at* but later '0an1e) 0is min)8 T0e onl$ alternati;e %orm o% %inan'e <0i'0 <as
;iable <as %or .r Cor)ner to re/mort1a1e t0e 0ouse 0e an) 0is <i%e 0a) :ust bou10t G
t0e ,erin1s G but 0e an) 0is <i%e e;entuall$ )e'i)e) a1ainst )oin1 t0at8 He t0ere%ore
)i) not ta9e u5 .r Hone on 0is o%%er8
1>28 4t is sai) on t0e 'laimants? be0al% t0at .r Cor)ner <as ne;er seriousl$ 'onsi)erin1
len)in1 to .r Hone8 .r Cor)ner 0a) :ust bou10t t0e ,erin1s <it0 a loan o% B9>2*000
se'ure) b$ <a$ o% a mort1a1e* an) on 0is 'ase <it0 loans totallin1 B712*->" %rom .r
Hone8 4n a))ition* 0is ban9 a''ounts s0o< t0at 0e <as o;er)ra<n at t0e time8 He :ust
)i) not 0a;e t0e %un)s a;ailable to len) .r Hone an$t0in1 a55roa'0in1 B750*0008 .r
Cor)ner sa$s t0at 0e <as t0in9in1 o% len)in1 .r Hone 5er0a5s B100*000/B200*0008
T0e 'laimants sa$ t0at it <oul) 0a;e been absur) %or 0im to ris9 t0at amount <0en t0e
return on t0e 5ro5ose) sale o% 0is a5artments at +lo0a #o$al an) +l)ea Bea'0 <ere
5otentiall$ so 1reat* but .r Cor)ner sa$s t0at t0e return on t0e loan <as -0K o;er
onl$ 1" mont0s* an) t0at t0is return <as 1uarantee) <0ereas t0e return on t0e
a5artments <as not8
1>-8 4t is also sai) on t0e 'laimants? be0al% t0at i% .r Hone reall$ <ante) to raise mone$
%rom .r Cor)ner* 0e <oul) 0a;e as9e) 0im to 5a$ ba'9 t0e loans o% B712*->" rat0er
t0an borro< mone$ %rom .r Cor)ner at su'0 an eDorbitant rate o% interest8 T0e %a't
t0at 0e )i) not rat0er su11ests t0at .r Hone )i) not 9no< an$t0in1 about t0ese loans8
+n) .r Cor)ner 0a) no ans<er %or <0$ .r Hone mi10t 0a;e e;en 'onsi)ere)
allo<in1 .r Cor)ner to 0a;e 0is mone$ ba'9 %or t0e a5artments at +lo0a #o$al <0en
0e 0a) sol) t0em at su'0 a '0ea5 5ri'e in or)er to raise t0e mone$ 0e nee)e) to 5a$
o%% 0is 5artner8
1>"8 (ir =eo%% <as not t0e onl$ 5erson .r Cor)ner s5o9e to about len)in1 mone$ to .r
Hone8 He sa$s t0at .r Hone as9e) 0im to %in) 5eo5le <0o mi10t be intereste) in 0is
o%%er8 +lt0ou10 .r Cor)ner )oes not 0a;e a 'lear memor$ o% it* 0e )oes not )is5ute
t0at 0e s5o9e to .r Ho5le$ an) .r Cen$on about it8 But 0e )oes not belie;e t0at 0e
sent .r Cen$on a 'o5$ o% .r omas? 'ontra't* an) i% 0e )i) not* it must 0a;e been
.r Hone <0o 5ro;i)e) it to .r Cen$on8 JnAuestionabl$* .r Cen$on 1ot it %rom
someone* be'ause it <as .r Cen$on <0o )is'lose) it8
1>98 4t is a1ainst t0at ba'91roun) t0at <e 'ome to .r Cor)ner?s e;i)en'e about 0o< 0e
'ame to tal9 to (ir =eo%% about t0e 5ro5ose) loan an) <0at 0e tol) 0im8 4n 0is
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<itness statements* 0e sai) t0at .r Hone as9e) 0im to 5ut t0e 5ro5osal to (ir =eo%%8
4n 0is e;i)en'e* 0e sai) t0at .r Hone tol) 0im to 1et (ir =eo%% to rin1 0im* i8e8 .r
Hone8 (o it is un'lear <0et0er 0e <as sa$in1 t0at .r Hone <ante) to 5ut t0e o%%er to
(ir =eo%% 0imsel%* or <0et0er 0e <as 'ontent %or .r Cor)ner to )o t0at8 But it <as
almost 'ertainl$ t0e latter be'ause .r Cor)ner a'9no<le)1e) t0at 0e <oul) 1et a
'ommission i% 0e 1ot (ir =eo%% to len) .r Hone t0e mone$* base) on a 5er'enta1e o%
t0e amount <0i'0 <as a'tuall$ lent8 6resumabl$ .r Cor)ner <oul) 0a;e 1ot similar
'ommissions i% 0e 0a) 5ersua)e) ot0er 5eo5le to len) to .r Hone8 4n t0e e;ent* 0e
<as 5ai) 'ommission on (ir =eo%%?s loan8 He 'annot no< re'all 0o< mu'0 it <as*
but 0e t0ou10t t0at it <oul) 0a;e been B12*000/B25*0008 3or .r Cor)ner to 0a;e
earne) 'ommission o% t0at 9in)* 0e must 0a;e )one Auite a lot to 1et (ir =eo%% to
a1ree to len) .r Hone t0e mone$8
1508 +s %or <0at .r Cor)ner tol) (ir =eo%%* 0e a1ree) t0at 0e tol) (ir =eo%% t0at .r Hone
nee)e) to raise a loan %or a )e;elo5ment in Teneri%e* an) t0at t0e return on t0e loan
<oul) be as 0i10 as it <as be'ause .r Hone <oul) be ma9in1 a lot o% mone$ on t0e
)e;elo5ment8 T0at <as 5resumabl$ <0at .r Hone 0a) tol) 0im8 He a1ree) t0at 0e
tol) (ir =eo%% t0at t0e se'urit$ <oul) be in t0e %orm o% a 5ost/)ate) '0eAue* 9no<n as
a pagar/* an) t0at it <as a 'riminal o%%en'e in (5ain not to 0onour it on 5resentation8
3inall$* 0e a1rees t0at 0e tol) (ir =eo%% t0at 0e <as 'onsi)erin1 len)in1 .r Hone
mone$ 0imsel%8 He 'laims t0at 0e )i) not tell (ir =eo%% t0at 0e 0a) alrea)$ )one so*
nor )i) 0e tell (ir =eo%% later on t0at 0e 0a) been re5ai) <0at 0e 0a) in;este)* t0ou10
not in 'as0* but in a5artments or lan)8 +n) 0e sa$s t0at <0en 0e 0ear) t0at .r
Ho5le$ 0a) as9e) %or a))itional se'urit$ in t0e %orm o% an a5artment at +lo0a #o$al*
0e tol) (ir =eo%% t0at 0e <ante) se'urit$ o% t0at 9in) as <ell8 He )oes not re'all
tellin1 .r (im5son t0at .r Hone ne;er use) ban9s %or borro<in18
1518 The sale of no. +" Aloha Ro(al to Mr Innocent8 .r Cor)ner a1ree) t0at .r 4nno'ent
<as a 1oo) %rien) o% 0is8 .r Cor)ner sa$s t0at <0at 0e tol) .r 4nno'ent <as t0at 10
a5artments <ere a;ailable at a s5e'ial 5ri'e on lan) o<ne) b$ .r Hone <0i'0 0e <as
)e;elo5in18 He a1rees t0at 0e tol) .r 4nno'ent t0at .r Hone nee)e) 'as0 to bu$ out
0is 5artner8 He )oes not t0in9 t0at 0e sai) t0at 0e <as H;er$ 'loseI to .r Hone8 He
0a) onl$ 9no<n .r Hone %or a %e< mont0s t0en* an) 0e ma$ 0a;e sai) t0at 0e 1ot on
<ell <it0 0im8 T0e$ <ere 'lose* but not ;er$ 'lose* an) i% 0e 0a) sai) t0at t0e$ <ere
;er$ 'lose* 0e <oul) 0a;e been eDa11eratin18
1528 .r Cor)ner )oes not t0in9 t0at 0e tol) .r 4nno'ent t0at .r Cen$on an) (ir =eo%%
0a) alrea)$ 5ur'0ase) a5artments at +lo0a #o$al8 W0at 0e sa$s 0e tol) .r 4nno'ent
<as t0at 0e <as 1oin1 to in;est in +lo0a #o$al 0imsel%8 He sa$s t0at 0e 'oul) not
re'all <0et0er .r 4nno'ent 0a) met or e;en 0ear) o% .r Cen$on* but 0e 'ommente)
t0at it <oul) 0a;e been stu5i) %or 0im to tell .r 4nno'ent t0at .r Cen$on 0a)
5ur'0ase) t0ere i% .r 4nno'ent 9ne< .r Cen$on* be'ause .r 4nno'ent 'oul) easil$
%in) out %rom .r Cen$on t0at it <as untrue8 +s %or (ir =eo%%* .r Cor)ner sai) t0at
0e <oul) not 0a;e )reamt o% sa$in1 t0at (ir =eo%% 0a) bou10t t0ere i% it <as not true
in ;ie< o% 0is 0i10 esteem %or (ir =eo%%8 He a1rees t0at 0e sai) t0at a ban9 1uarantee
<oul) be in 5la'e* an) t0at t0ere <as B"*000 to be ma)e i% .r 4nno'ent intro)u'e) a
5ur'0aser %or one o% t0e a5artments at +lo0a #o$al 0imsel%8 He also a1rees t0at 0e
re'ei;e) 0is 'ommission o% L">*700 on t0is sale8
1578 The sale of no. +0 Aloha Ro(al to Mr and Mrs Roberts8 .r Cor)ner a1ree) t0at .r
an) .rs #oberts <ere %rien)s o% 0is8 W0en 0e s5o9e to .r #oberts about t0e 10
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
a5artments at +lo0a #o$al* 0e tol) .r #oberts t0at 0e 0a) reser;e) t0em8 He )i) not
sa$ t0at 0e 0a) bou10t t0em* or <as bu$in1 t0em in bul9* or 'oul) bu$ t0em8 He
a1rees t0at 0e tol) .r #oberts t0at t0e$ <ere a;ailable at a )is'ount* t0ou10 not a
si1ni%i'ant )is'ount* but 0e )i) sa$ t0at t0e$ 0a) been re)u'e) %rom L>->*"00 to
L29"*0008 He a1rees t0at 0e tol) .r #oberts t0at t0e a5artments t0ere <oul) be built
in t<o $ears* an) t0at 0e belie;e) t0at .r #oberts 'oul) )ouble 0is mone$* sin'e on'e
t0e$ <ere built t0e$ 'oul) be <ort0 L200*000/L-00*0008
15>8 .r Cor)ner <as m$sti%ie) about .r #oberts bein1 sent Harr$ #e)9na55?s 'ontra't
%or t0e 5ur'0ase o% no8 21 +lo0a #o$al8 Harr$ #e)9na55 0a) not bou10t an
a5artment at +lo0a #o$al* t0ou10 0e 0a) bou10t 5ro5erties t0rou10 #.= else<0ere8
He )i) not )oubt t0at someone must 0a;e sent Harr$ #e)9na55?s 'ontra't to .r
#oberts %or .r #oberts to 0a;e )is'lose) it* an) 0e 'an onl$ assume t0at it <as sent to
.r #oberts b$ mista9e8 He sa$s t0at 0e ne;er tol) .r #oberts t0at Harr$ #e)9na55
0a) bou10t an a5artment at +lo0a #o$al8 He 0a) been tol) b$ .r Hone t0at .artin
6eters an) .i'0ael 3latle$ <ere 'onsi)erin1 in;estin1 in #.=* an) 0e t0in9s t0at 0e
tol) .r #oberts t0at t0at <as <0at .r Hone 0a) tol) 0im* but 0e <as unable to sa$
<0et0er 0e tol) .r #oberts t0at be%ore or a%ter .r #oberts 0an)e) o;er 0is '0eAue
%or B211*7>-8
1558 The purchase of no. -+ Aloha Ro(al b( Mr Cordner and Mr Barkle(8 .r Cor)ner
a1ree) t0at .r Bar9le$ <as a %rien) o% 0is <0o 0e 0a) met at +llie) ,unbar in t0e
1990s8 He )oes not )isa1ree <it0 mu'0 o% .r Bar9le$?s a''ount o% <0at 0e tol) .r
Bar9le$ at t0e sales 'on;ention in .auritius* but 0e t0in9s t0at alt0ou10 0e re1ar)e)
.r Hone an) #.= as s$non$mous* 0e tol) .r Bar9le$ t0at .r Hone* rat0er t0an
#.=* o<ne) t0e lan) on <0i'0 +lo0a #o$al <as to be )e;elo5e)8 .r Cor)ner )i)
not t0in9 t0at .r Hone 0a) a 5artner in #.=8 He t0ou10t t0at .r Hone o<ne)
#.= 0imsel%* an) t0at t0e 5artner <0o .r Hone <ante) to bu$ out <as a 5artner in
an unrelate) lan) )eal8 T0at <as <0at 0e sa$s 0e tol) .r Bar9le$8 He re'alls tellin1
.r Bar9le$ t0at t0e 10 a5artments 0a) been Hbou10t u5I* an) t0at <as a re%eren'e to
t0e %a't t0at .r Hone 0a) ta9en ba'9 %rom 0im t0ose o% t0e a5artments <0i'0 .r
Cor)ner 0a) not been able to sell8
1528 .r Cor)ner a1ree) t0at 0e 1ot in tou'0 <it0 .r Bar9le$ a1ain to tell 0im t0at one o%
t0e a5artments 0a) be'ome a;ailable8 He t0in9s t0at 0e <as re%errin1 to one o% t0e
a5artments <0i'0 .r Bro1an 0a) bou10t* but i% 0e <as not* it must 0a;e been be'ause
.r Hone 0a) release) a se'on) a5artment ba'9 to 0im8 He )oes not )isa1ree <it0
<0at .r Bar9le$ sa$s 0e tol) .r Bar9le$ <0en t0e$ <ere in (5ain to1et0er* sa;e t0at
0e sa$s t0at 0e tol) .r Bar9le$ t0at a ban9 1uarantee <oul) be in 5la'e* not t0at one
<as in 5la'e8
15-8 .r Bar9le$ <as t0e onl$ one o% t0e 'laimants %or <0om .r Cor)ner sa$s t0at 0e )i)
somet0in1 more t0an :ust tell t0em t0at t0e$ 'oul) use (5anis0 la<$ers <0o 0e 'oul)
arran1e or 1et t0eir o<n le1al a);i'e8 He sa$s t0at <0en 0e tol) .r Bar9le$ t0at t0e$
'oul) use eit0er .s Cam5aRa or anot0er la<$er* .r Bar9le$ le%t t0e )e'ision u5 to
0im8 HW0ate;erI <as .r Bar9le$?s res5onse* 0e sai)8 (o 0e as9e) .s Cam5aRa to
'0e'9 t0in1s out %or t0em8 He )oes not 9no< <0at s0e )i)* i% an$t0in1* but s0e tol)
0im t0at Hs0e?) )one t0e '0e'9s an) t0at e;er$t0in1 <as FCI8 T0is <oul) 0a;e been
a%ter t0e$ 0a) si1ne) t0e 5ro5ert$ reser;ation s0eet* but be%ore 0e 1ot .r Bar9le$?s
'0eAue8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
15"8 T0e 'laimants? 'ase is t0at .r Cor)ner <as ma9in1 t0is u5 as 0e <ent alon18 He
)oes not re'all <0o 5ai) .s Cam5aRa?s %ees* an) s5e'ulates t0at s0e mi10t not 0a;e
'0ar1e) t0em at all* e;en t0ou10 t0e 1ui)e %or intro)u'ers re'9one) t0at le1al 'osts
<oul) amount to about 1K o% t0e 5ur'0ase 5ri'e at t0e time o% t0e 5a$ment o% t0e
)e5osit* an) <oul) 'ome in all to about 2K o% t0e 5ur'0ase 5ri'e8 He )oes not re'all
<0et0er .r Bar9le$ e;en as9e) 0im <0et0er 0e 0a) 1ot le1al a);i'e an) <0et0er
e;er$t0in1 <as alri10t8 +n) 0e a1rees t0at in 0is ,e%en'e 0is ans<er to t0e alle1ation
t0at 0e tol) t0e 'laimants t0at 0e <oul) sort out t0e le1al si)e o% t0in1s <as a )enial
t0at 0e 0a) sai) t0at* rat0er t0an t0at G in .r Bar9le$?s 'ase G t0is <as t0e ;er$ t0in1
0e 0a) )one8
1598 W0en .r Cor)ner 'ame in 0is e;i)en'e to .r Bar9le$?s reAuest %or .r Cor)ner to
eD5lain 0o< 0e 0a) 5ai) %or 0is 0al% s0are o% no8 52* 0e <as not 5re5are) to a''e5t
t0at 0e <as bein1 5resse) about t0at b$ .r Bar9le$ on an almost )ail$ basis8 But
<0en 0e sent .r Bar9le$ t0e 50oto'o5$ o% t0e '0eAue %or B99*97" 5a$able to
=ros;enor* 0e 1enuinel$ t0ou10t t0at it re5resente) 0is 5a$ment %or 0is 0al%/s0are o%
no8 528 Ho< )i) 0e 0a;e a 50oto'o5$ o% t0e '0eAue <0en 0e <oul) 0a;e sent t0e
ori1inal to .r HoneP .r Cor)ner sa$s t0at 0is 5ra'ti'e is to 50oto'o5$ '0eAues %or
lar1e amounts* be%ore sen)in1 t0em o%%* t0ou10 0e )oes not belie;e t0at t0e 50oto'o5$
o% t0e '0eAue .r Bar9le$ 5ro)u'e) 'oul) 0a;e been t0e one 0e 0a) sent to .r
Bar9le$* be'ause 0e <oul) not 0a;e sent su'0 a ba) 50oto'o5$ to 0im8 His 'ase* 4
t0in9* is t0at t0e 50oto'o5$ o% t0e '0eAue <0i'0 .r Bar9le$ 5ro)u'e) is so ba)
be'ause .r Bar9le$ or t0e 'laimants? soli'itors must 0a;e 50oto'o5ie) t0e 50oto'o5$
o% t0e '0eAue <0i'0 0e 0a) sent to .r Bar9le$8
1208 (o i% .r Cor)ner sent t0e ori1inal '0eAue to .r Hone* an) sent t0e 50oto'o5$ <0i'0
0e 0a) ma)e o% t0e ori1inal '0eAue to .r Bar9le$* 0o< <as 0e able to )is'lose in t0e
'ourse o% t0e 5ro'ee)in1s t0e better 50oto'o5$ o% t0at '0eAue on <0i'0 .r Hone 0a)
'om5lete) 0is re'ei5t o% itP .r Cor)ner sa$s t0at it <as sent to 0im b$ .r Hone as
0is re'ei5t %or 5art/5a$ment o% t0e 5ur'0ase 5ri'e %or no8 528 T0e )o'ument <0i'0 0e
1a;e to 0is soli'itors in t0e 'ourse o% )is'losure <as not t0e ori1inal o% t0e )o'ument
0e 1ot %rom .r Hone be'ause t0at 0a) .r Hone?s 0an)<ritin1 on it in blue biro*
<0ereas t0e one )is'lose) b$ 0is soli'itors is a 50oto'o5$ o% t0at8 .r Cor)ner
assume) t0at 0e 0a) 50oto'o5ie) 0imsel% t0e a'tual )o'ument 0e 1ot %rom .r Hone*
an) t0at it <as t0at 50oto'o5$ <0i'0 0e 0a) 1i;en to 0is soli'itors* but 0e 0as been
unable to %in) t0e ori1inal )o'ument 0imsel%8
1218 .r Cor)ner <as in)i1nant at t0e su11estion t0at 0e <as not 1oin1 0al;es <it0 .r
Bar9le$ be'ause o% t0e 'ommission o% L">*7008 T0e 5ur'0ase 5ri'e 0a) a'tuall$
been L29"*000* 0e sai)* an) t0e %a't t0at 0e <as 1ettin1 'ommission <0i'0 <as bein1
)e)u'te) %rom 0is 0al%/s0are o% t0e 5ur'0ase 5ri'e )i) not alter t0at8 But t0e %a't t0at
in t0e note <0i'0 .r Cor)ner <rote to .r Hone 0e sai) t0at t0e 5ur'0ase 5ri'e <as
L217*-00* i8e8 L29"*000 less L">*700* le) to a rat0er ra)i'al su11estion bein1 ma)e to
.r Cor)ner in t0e 'ourse o% 0is 'ross/eDamination8 T0at <as t0at t0e s5e'ial )eal
<as not t0at t0e 10 a5artments <oul) be sol) %or L29"*000 <it0 .r Cor)ner 1ettin1
'ommission o% L">*700 on ea'0 sale* but t0at t0e$ <ere to be sol) %or at least
L27-*000 <it0 .r Cor)ner 1ettin1 'ommission on ea'0 sale at a more 'on;entional
rate o% 10K* an) t0at i% 0e mana1e) to sell an$ o% t0e a5artments %or more t0an
L27-*000* 0e 'oul) 9ee5 t0e )i%%eren'e8 T0at su11estion <as sai) to be su55orte) b$
t0e re%eren'e to t0e 5ur'0ase 5ri'e in .r Cor)ner?s note to .r Hone o% L217*-00* as
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<ell as t0e %a't t0at t0e L27-*000 <as not %ar o%% 0al% o% L>->*"00* but more
im5ortantl$ b$ an un)ate) in;oi'e a))resse) to .r Hone settin1 out t0e 'ommission
)ue to .r Cor)ner on 2- &une 20078 T0at in;oi'e re%erre) to t0e 'ommission <0i'0
.r Cor)ner <as )ue on t<o o% t0e a5artments at +lo0a #o$al <0i'0 0e 0a) sol) b$
t0en G no8 52 (<0i'0 0e 0a) bou10t 0imsel%) an) no8 22 (<0i'0 .r 4nno'ent 0a)
bou10t)8 4n t0at in;oi'e* t0e 'ommission <0i'0 .r Cor)ner sai) <as )ue to 0im %or
ea'0 sale <as L27*-00* i8e8 10K o% L27-*0008
1228 4 'annot 1o alon1 <it0 t0is at all8 +s .r &e%%eris 5ointe) out* t0e mat0emati's )o not
a)) u58 L27-*000 is not 0al% o% L>->*"00: L27-*>00 is8 L217*-00 is not L27-*000
less 10K8 L27-*000 less 10K is L217*7008 +n) t0e %a't t0at t0e 'ommission <0i'0
.r Cor)ner 1ot on t0e a5artment <0i'0 0e sol) to 6a))in1ton 6ro5erties 4n'8 (0is
o<n 'om5an$) <as L27*-00 is eD5li'able on t0e basis t0at t0e 5ur'0ase 5ri'e o% that
a5artment <as L27-*0008 +%ter all* t0e 5ro5ert$ reser;ation s0eet an) t0e 'ontra't o%
sale bot0 re%er to t0e 5ur'0ase 5ri'e as bein1 L27-*0008 4t is not 5ossible to eD5lain
%or sure <0$ t0e 'ommission )ue on .r 4nno'ent?s a5artment <as eD5resse) in t0e
in;oi'e to be L27*-00* but t0at ma$ 0a;e been be'ause .r Cor)ner 0a) onl$ been
5ai) 5art o% 0is 'ommission b$ t0en* an) t0is <as 0is in;oi'e %or t0e balan'e8
1278 The sale of no. +1 Aloha Ro(al to Mr 2en(on8 .r Cor)ner a1ree) t0at 0e an) .r
Cen$on <ere %rien)s8 4n)ee)* 0e )es'ribe) .r an) .rs Cen$on as H;er$* ;er$ 1oo)
%rien)sI o% 0is8 He sa$s t0at <0en 0e tol) .r Cen$on about t0e a5artments at +lo0a
#o$al <0i'0 <ere bein1 sol) at a )is'ount* 0e tol) .r Cen$on t0at .r Hone
o5eratin1 t0rou10 #.= o<ne) t0e site an) <as t0e )e;elo5er o% it* an) t0at .r Hone
nee)e) to raise mone$ to bu$ out 0is 5artner8 He )i) not sa$ t0at .r Hone nee)e) to
raise mone$ to bu$ out 0is 5artner in RMG8 He t0in9s t0at 0e tol) .r Cen$on t0at
.r Hone nee)e) to bu$ out 0is 5artner in a lan) )eal8 He )i) not tell .r Cen$on t0at
0e <as t0e '0airman o% #.=8 +ll 0e tol) 0im <as <0ate;er 0is :ob title at t0e time
<oul) 0a;e been8
12>8 .r Cor)ner )i) not initiall$ )eal in 0is e;i)en'e <it0 <0et0er 0e tol) .r Cen$on t0at
0e 0a) onl$ one a5artment le%t* but 0e tol) .r Cen$on t0at 0e 0a) reser;e) 10
a5artments <it0out tellin1 0im 0o< man$ o% t0em 0a) been sol)8 Ho<e;er* <0en 0e
<as remin)e) t0at 0e 0a) tol) .r 6o<er?s soli'itors %our mont0s or so earlier t0at t0e
a5artment <0i'0 .r 6o<er <as t0in9in1 o% bu$in1 <it0 (ir =eo%% <as Ht0e last
5ro5ert$ a;ailable at t0e re)u'e) 5ri'eI* .r Cor)ner sai) t0at b$ t0e time t0at 0e <as
tal9in1 to .r Cen$on about .r Cen$on?s 5ro5ose) 5ur'0ase o% an a5artment at +lo0a
#o$al* .r Hone 0a) tol) 0im t0at anot0er a5artment 0a) be'ome a;ailable8 He
a1rees t0at 0e tol) .r Cen$on t0at 0e 0a) in;este) in +lo0a #o$al 0imsel%* but not
t0at 0is 5arents 0a)8
1258 F% 'ourse* all t0is 0a55ene) Auite a time a%ter t0e ot0er 'laimants 0a) bou10t t0eir
a5artments at +lo0a #o$al8 4%* as .r Cor)ner 'laims* .r Hone 0a) tol) 0im ba'9 in
.a$ 2007 t0at 0e nee)e) to raise t0e mone$ Hur1entl$I* <as .r Hone still sa$in1 t0at
0e nee)e) t0e mone$ to bu$ out 0is 5artner in a lan) )ealP .r Cor)ner sa$s t0at 0e
<as still sa$in1 t0at* but 0e a'9no<le)1e) t0at it <as not .r Hone <0o nee)e) t0e
mone$ Aui'9l$8 4t <as 0e* .r Cor)ner* <0o nee)e) it Aui'9l$ be'ause .r Hone 0a)
sai) t0at 0e 'oul) borro< %rom .r Hone <0ate;er 0e 1ot %rom t0e sale o% no8 2>
+lo0a #o$al to .r Cen$on an) use it to<ar)s t0e 5ur'0ase o% t0e 0ouse 0e <as
bu$in1 at t0e time8 He )enie) t0at 0e 0a) 'on'eale) t0at %rom .r Cen$on be'ause
0e %eare) t0at .r Cen$on mi10t not bu$ t0e a5artment i% 0e 9ne< <0at t0e mone$
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<as ultimatel$ 1oin1 to be use) %or8 3inall$* .r Cor)ner a'9no<le)1e) t0at 0e 0a)
tol) .r Cen$on t0at 0e <as 1ettin1 t0e a5artment at a s5e'ial 5ri'e8 To t0e
su11estion t0at t0e 5ri'e 'oul) 0ar)l$ be )es'ribe) as s5e'ial <0en all t0e ot0er
'laimants 0a) 5ai) onl$ L29"*000 %or t0eir a5artments* <0ereas .r Cen$on 0a) 5ai)
L720*000 %or 0is* .r Cor)ner sai) t0at it <as a s5e'ial 5ri'e in t0e sense t0at it <as
bein1 sol) %or belo< t0e list 5ri'e o% L>->*"008 He )i) not sa$ in 0is e;i)en'e <0$
t0e 5ri'e <0i'0 .r Cen$on 0a) 0a) to 5a$ %or 0is a5artment <as L22*000 more t0an
t0e ot0er 'laimants 0a) 0a) to 5a$ %or t0eirs* or <0et0er 0is 'ommission on t0e sale o%
t0e a5artment to .r Cen$on 0a) still been L">*700 or <0et0er it 0a) been more t0an
t0at be'ause t0e 5ur'0ase 5ri'e 0a) been 1reater8
1228 Mr Cordners o'n inestments8 + 'entral %eature o% .r Cor)ner?s 'ase is t0at 0e 0a)
t0e same trust in .r Hone as t0e 'laimants 0a) in 0im8 4% 0e 0a) not belie;e) .r
Hone* an) i% 0e 0a) 0a) an$ in9lin1 t0at .r Hone <oul) not be able to )e;elo5 +lo0a
#o$al* or to 5ass 1oo) title to t0e a5artments t0ere* <oul) 0e 0a;e bou10t a5artments
t0ere 0imsel%P +n) <oul) 0e 0a;e in;este) in +l)ea Bea'0 <0i'0 <as anot0er #.=
)e;elo5mentP 4n or)er to e;aluate t0at 5oint* it is ne'essar$ to loo9 at ea'0 o% t0e
in;estments .r Cor)ner ma)e* bearin1 in min) t0at 0e sa$s t0at 0e bou10t t0ese
5ro5erties as in;estments eit0er to sell <0en t0e$ 0a) been built or to rent out8
12-8 4 )eal %irst <it0 no8 52 +lo0a #o$al8 T0e 5ro5ert$ reser;ation s0eet s0o<s t0at .r
Cor)ner bou10t no8 52 %or L27-*000 on 1- &une 20078 He 5ur5orte) to 5a$ %or it b$
(a) a '0eAue 5a$able to =ros;enor %or B99*97"* <0i'0 eAuate) to L179*91> at an
eD'0an1e rate o% B1800 to L18>7* an) (b) B9-*0"2 in lieu o% 'ommission8 T0e in;oi'e
<0i'0 0e sent to .r Hone %or 0is 'ommission on t0is sale <as %or L27*-00* i8e8 10K
o% L27-*0008 .r Cor)ner <as un'ertain <0$ 0is 5ur'0ase o% no8 52 <as stru'ture) in
t0is <a$* i8e8 L27-*000 <it0 'ommission o% 10K* but 0e a1ree) t0at t0e e%%e't <as t0at
0e <oul) 0a;e to 5a$ taD on onl$ L27*-00 an) not on L">*7008 4n)ee)* .r Cor)ner
a)mitte) t0at 0e 0a) not e;en 5ai) taD on t0e L27*-008 He sai) t0at at t0e time 0e
belie;e)* albeit <ron1l$* t0at 0e <oul) onl$ be liable %or taD <0en t0e 1ain <as
realise)* i8e8 <0en no8 52 <as e;entuall$ sol)8
12"8 4n t0ese 'ir'umstan'es* t0e 'laimants sa$ t0at t0ere are %our t0in1s <0i'0 s0o< t0at
.r Cor)ner?s 5ur'0ase o% no8 52 0ar)l$ re5resente) a ris9 %or .r Cor)ner8 3irst* t0is
<as an eDtraor)inaril$ 1oo) )eal %or .r Cor)ner8 He <as 1ettin1 t0e a5artment
in're)ibl$ '0ea5l$* an) be'ause o% t0e <a$ t0e 5ur'0ase <as stru'ture)* 0e <as e;en
minimisin1 0is taD eD5osure8 (e'on)l$* t0ere <as 1oo) reason to t0in9 t0at 0e )i)
not e;en 5a$ t0e B99*97"* be'ause 0e 1ot most o% it ba'9 b$ a '0eAue %or B"7*0-7
)ate) 2- &une 2007 )ra<n on #.=?s a''ount <it0 Ban'o )e (aba)ell si1ne) b$ .r
Hone8 .r Cor)ner assumes t0at t0is <oul) 0a;e been %or 'ommission 0e <as o<e)*
but t0ere is no 5a5er<or9 <0i'0 0as been )is'lose) relatin1 to t0at 5a$ment8 +n) t0e
lin9 bet<een .r Cor)ner?s '0eAue to =ros;enor %or B99*97" an) #.=?s '0eAue to
.r Cor)ner %or B"7*0-7 is t0at .r Cor)ner?s '0eAue* t0ou10 )ate) 2- &une 2007*
loo9s as i% it <as ori1inall$ )ate) 1- &une 20078 T0at <oul) tie in <it0 .r Hone?s
re'ei5t %or it <0i'0 is )ate) 1- &une 2007* an) t0e su11estion is t0at t0e )ate <as
'0an1e) to 2- &une 2007 be'ause t0at <as <0en .r Hone <as to 5a$ .r Cor)ner t0e
B"7*0-78 .r Cor)ner )enie) all t0at8 T0ir)l$* i% t0is <as a 1enuine arms/len1t0
5ur'0ase* <0$ )i) .r Cor)ner t0in9 t0at t0e '0eAue %or B99*97" relate) to 0is
5ur'0ase o% no8 52 +lo0a #o$al <it0 .r Bar9le$ G unless 0e 9ne< all alon1 t0at it )i)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
notP 3ourt0l$* it is Auestionable <0et0er .r Cor)ner <as alrea)$ o<e) 'ommission
o% B9-*0"28 He 'oul) not remember <0at it <as %or8
1298 3rom no8 52 +lo0a #o$al* 4 turn to t0e ot0er a5artments at +lo0a #o$al <0i'0 .r
Cor)ner bou10t :ointl$ <it0 ot0ers8 3irst* t0ere is no8 52 <0i'0 0e bou10t :ointl$
<it0 .r Bar9le$8 T0e 'laimants sa$ t0at t0is 5ur'0ase too 0ar)l$ re5resente) a ris9
%or .r Cor)ner be'ause 0e 5ai) %or 0is 0al%/s0are o% it out o% 'ommission G t0e
'ommission o% L">*700 <0i'0 0e <as )ue on t0is ;er$ sale* an) L22*-00 out o% t0e
'ommission o% L">*700 <0i'0 0e <as )ue on t0e sale on no8 20 +lo0a #o$al to (ir
=eo%% an) .r 6o<er8 (e'on)l$* t0ere is no8 22 +lo0a #o$al <0i'0 .r Cor)ner
'laims 0e bou10t :ointl$ <it0 .ar9 B$rne 5a$in1 0al% t0e 5ur'0ase 5ri'e 0imsel%8 .r
Cor)ner sai) t0at no8 22 <as a1ain one o% t0e a5artments at +lo0a #o$al 'o;ere) b$
t0e s5e'ial )eal8 He 'laims t0at subseAuentl$ .r B$rne <ante) to o<n no8 22
0imsel% outri10t8 .r B$rne 0a) 5re;iousl$ 5ai) )e5osits on t<o a5artments at +l)ea
Bea'0 G nos8 112 an) 11> G an) .r Cor)ner a1ree) to 1i;e u5 0is interest in no8 22
+lo0a #o$al %or .r B$rne?s interest in nos8 112 an) 11> +l)ea Bea'08 T0ere is no
)o'umentation relatin1 to t0eir 5ur'0ase o% no8 22 +lo0a #o$al* but )o'uments
5ro)u'e) b$ .r Cor)ner s0o< t0at 0e a'Auire) 0is interest in t0e t<o a5artments in
+l)ea Bea'0 b$ 'ontra'ts )ate) 15 .a$ 2005* an) t0e$ sa$ t0at a 20K )e5osit on
ea'0 o% L-1*"9> 0a) been 5ai) on 29 .a$ 20078
1-08 T0e 'laimants )o not su11est t0at .r Cor)ner )i) not a'Auire a 0al%/s0are o% no8 22
+lo0a #o$al <it0 .r B$rne8 T0eir 'ase is t0at 0e )i) not 5a$ %or 0is 0al%/s0are8
Jnli9e 0is ot0er in;estments in +lo0a #o$al an) +l)ea Bea'0* it is not re%erre) to in
an$ o% 0is <itness statements* an) i% 0e 0a) 5ai) an$t0in1 %or it* 0e 'oul) be eD5e'te)
to 0a;e mentione) 0is interest in t0e a5artments sin'e 0e <as re%errin1 to 0is
in;estments to s0o< t0at 0e 0a) truste) .r Hone8 T0e reason <0$ 0e )i) not re%er to
0is interest in no8 22 until 0e 1a;e e;i)en'e about it <as* sa$ t0e 'laimants* be'ause
0e 9ne< t0at 0e <oul) be Auestione) about 0o< 0e 0a) 5ai) %or it8 .r Cor)ner sa$s
t0at 0e 5ai) %or 0is 0al%/s0are out o% 0is 'ommission on t0e sale itsel% an) ot0er
'ommission to <0i'0 0e <as entitle)* but no )o'ument s0o<in1 t0at 0as been
)is'lose)* nor 0as 0e )is'lose) an$ note to .r Hone (similar to t0e one 0e <rote
eD5lainin1 0o< 0e 0a) 5ai) %or 0is 0al%/s0are o% no8 52) eD5lainin1 0o< 0e 0a) 5ai)
%or 0is 0al%/s0are o% no8 228 4n)ee)* .r Cor)ner?s in;oi'e to .r Hone o% 2- &une
2007 %or outstan)in1 'ommission* in <0i'0 one mi10t 0a;e eD5e'te) to see a
re%eren'e to t0e 'ommission 0e 0a) earne) on 0is an) .r B$rne?s 5ur'0ase o% no8 22*
)oes not re%eren'e to no8 22 at all8 T0ese are all 5o<er%ul 5oints* but alt0ou10 t0e
interest <0i'0 .r Cor)ner a'Auire) in nos8 52* 52 an) 22 +lo0a #o$al re5resente) on
t0e %a'e o% it an eD'ellent )eal %or 0im* 4 am not 5re5are) to sa$ t0at 0e )i) not 5a$ %or
t0ese a5artments <0at 0e 'laims 0e 5ai) %or t0em8 Nor am 4 5re5are) to sa$ t0at t0e
5oints ma)e on be0al% o% t0e 'laimants are so stron1 t0at t0e$ un)ermine 0is 'laim
t0at 0is 5ur'0ases o% t0e a5artments s0o< t0at 0e <as ta9en in b$ .r Hone as <ell8
1-18 3rom .r Cor)ner?s in;estments at +lo0a #o$al* 4 turn to 0is in;estments at +l)ea
Bea'08 T0is <as a )e;elo5ment <0i'0 en'ountere) 5lannin1 5roblems* an) as a
result <as ne;er built8 ea;in1 asi)e nos8 112 an) 11>* .r Cor)ner 0a) an interest in
t0ree a5artments at +l)ea Bea'0* nos8 15* 107 an) 20>8 No8 107 <as one o% t<o
a5artments <0i'0 0e 0a) sol) to &ane ,urbri)1e* t0e <i)o< o% an ol) %rien) o% .r
Cor)ner8 He 0a) en'oura1e) 0er to in;est t0e 5ro'ee)s o% 0er marital 0ome <0i'0
re5resente) 0er li%e sa;in1s in t0e a5artments* s<earin1 on 0er '0il)ren?s li;es t0at t0e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
in;estment <oul) be sa%e* an) tellin1 0er t0at s0e <oul) be able to )ouble 0er mone$8
W0en it be'ame a55arent t0at t0e 5lannin1 5roblems 'oul) not be surmounte)* an)
.rs ,urbri)1e an) 0er '0il)ren 0a) 0a) to mo;e to a 0ostel %or t0e 0omeless* s0e
<rote to .r Hone* <0o .r Cor)ner 0a) tol) 0er 0e 0a) been in 5artners0i5 <it0* but
0e <as not <illin1 to return 0er )e5osits to 0er8 E;entuall$ .r Cor)ner a1ree) to bu$
one o% t0e a5artments %rom 0er8 (0e <as to 1et 0er )e5osit %or t0at a5artment ba'9
%rom 0im* but 0e <as not <illin1 to bu$ t0e ot0er a5artment %rom 0er8
1-28 No8 20> +l)ea Bea'0 <as anot0er a5artment <0i'0 .r Cor)ner bou10t ba'9 %rom t0e
5ur'0aser <0o <ante) 0is )e5osit ba'98 T0e 5ur'0aser in t0at 'ase <as 4an Eau10an8
T0e 'laimants? 'ase is t0at .r Cor)ner bou10t t0is a5artment an) t0at o% .rs
,urbri)1e be'ause 0e <as embarrasse) t0at t0e$ 0a) ris9e) t0eir li%e sa;in1s on an
in;estment <0i'0 0e 0a) en'oura1e) t0em to ma9e* an) in .rs ,urbri)1e?s 'ase
be'ause 0e <as 1enuinel$ sorr$ %or t0e 5li10t s0e <as in8 T0at is also sai) to be t0e
reason <0$ 0e <as 5re5are) to eD'0an1e 0is interest in no8 22 +lo0a #o$al %or .r
B$rne?s t<o a5artments at +l)ea Bea'08 But t0e real 5oint 0ere is t0at t0e
'ir'umstan'es in <0i'0 .r Cor)ner a'Auire) 0is interest in nos8 107 an) 20> +l)ea
Bea'0 'om5letel$ un)ermine 0is assertion in 0is se'on) <itness statement t0at 0is
a'Auisition o% t0ese t<o a5artments Ha1ain N )emonstrates [0is] 'ontinuin1
'on%i)en'e in [+l)ea Bea'0] an) in .i'0ael Hone an) in t0e #o$al .arbella =rou5
e;en as late as 2- ,e'ember 200-I* <0i'0 <as about <0en 0e ma)e 0is last 5a$ment
to .rs ,urbri)1e to<ar)s t0e )e5osit s0e 0a) 5ai) on no8 1078
1-78 3inall$* t0ere is .r Cor)ner?s o<n 5ur'0ase o% no8 15 +l)ea Bea'08 T0e 5ro5ert$
reser;ation s0eet s0o<s t0at 0e bou10t it %or L22>*921 in'lusi;e o% 4E+* 5a$in1 a
)e5osit o% B1"*52"* <0i'0 eAuate) to L22*>92* bein1 10K o% t0e 5ur'0ase 5ri'e* at an
eD'0an1e rate o% B1800 to L18>78 T0is 'om5ares <it0 t0e )e5osit o% 70K o% t0e
5ur'0ase 5ri'e 5ai) b$ .rs ,urbri)1e %or 0er t<o a5artments at +l)ea Bea'0 an) b$
.r Eau10an %or no8 20> +l)ea Bea'08 But 0ere a1ain t0ere is some su11estion t0at
li9e 0is 5ur'0ase o% no8 52 +lo0a #o$al .r Cor)ner ma$ 0a;e been re5ai) t0at
amount at about t0e same time8 T0e t<o '0eAues <0i'0 0e <rote to 5a$ %or no8 52
+lo0a #o$al an) no8 15 +l)ea Bea'0 G B99* 97" (5a$able to =ros;enor) on 2- &une
2007 an) B1"*52" (5a$able to #.=) on 2" &une 2007 G amount to B11"*>22* <0ereas
t<o '0eAues 5a$able to .r Cor)ner )ra<n on #.=?s a''ount at Ban'o )e (aba)ell
an) si1ne) b$ .r Hone G B72*000 on 1- &une 2007 an) B"7*0-7 on 2- &une 2007 G
amount to B115*0-78 +n) t0at )oes not in'lu)e B"5*-1> 5ai) to Euro 6ro5ert$
(olutions t) b$ '0eAue )ate) 1- &une 20078 4s t0is an eDam5le o% .r Cor)ner
5reten)in1 to 5a$ %or 5ro5erties 0e <as bu$in1* but 1ettin1 t0e mone$ ba'9 in a
roun)about <a$P i9e t0e 5a$ment o% B99*97"* .r Cor)ner 'oul) not be sure <0at
t0e 5a$ments o% B72*000 or B"5*-1> <ere %or* but 0e assumes t0e$ <ere %or
'ommission8 Fn'e a1ain* 4 am not 5re5are) to sa$ t0at .r Cor)ner )i) not 5a$ %or
t0is a5artment <0at 0e 'laims 0e 5ai)8
4. Mr Cordners credibilit(
1->8 The challenge to Mr Cordners credibilit(8 .r Cor)ner?s 're)ibilit$ as a <itness is at
t0e 0eart o% t0e 'ase8 4t <as %or t0at reason t0at 0e <as 'ross/eDamine) at some
len1t0 about t0in1s t0at re;eale) t0e 9in) o% man 0e <as8 3or eDam5le* ;anit$ ma)e
0im 1o alon1 <it0 t0in1s sai) about 0im <0i'0 <ere not true8 He allo<e) #.=?s
200> bro'0ure to 5aint a %alse 5i'ture about 0im8 4t tal9e) o% 0im 0a;in1 been in
%inan'ial ser;i'es %or 27 $ears* <0ereas t0at 0a) onl$ been 0is o''u5ation %or 1>
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
$ears8 4t sai) t0at 0e <as %amiliar <it0 t0e 5ro'ess o% Hle1al 'on;e$an'eI in t0e JC*
<0ereas 0e )i) not 9no< 0o< 'on;e$an'in1 <or9e) an) le%t t0at to soli'itors8 4t
s5o9e o% 0im 0a;in1 a'Auire) Ha %abulous in;estment 5ort%olioI* <0i'0 .r Cor)ner
0imsel% )es'ribe) as 5oeti' li'en'e sin'e 0is in;estments in +lo0a #o$al an) +l)ea
Bea'0 <ere relati;el$ mo)est8 4t mentione) 0is Henormous net<or9 o% %inan'ial
'lienteleI* <0ereas in trut0 0e <as sim5l$ sellin1 %inan'ial 5ro)u'ts to members o% t0e
5ubli'8 +n) it re%erre) to 0is '0airmans0i5 o% t0e 4n)e5en)ent .ort1a1e Net<or9*
<0i'0 soun)e) as i% 0e <as t0e '0airman o% an asso'iation o% mort1a1e bro9ers*
<0ereas in trut0 it <as t0e tra)in1 name o% one o% 0is 'om5anies8
1-58 T0e same is true o% :ob titles8 He 5lainl$ en:o$e) 0a;in1 t0e 1ran)iose titles <0i'0
.r Hone 1a;e 0im8 .r Hone ma$ <ell 0a;e been 'ontent %or .r Cor)ner to 'all
0imsel% t0e '0airman o% #.=8 T0at <as <0at 0is business 'ar) sai) 0e <as* an) it
<as 0o< 0e <as )es'ribe) in #.=?s 2005 bro'0ure8 But it 1a;e a %alse im5ression
o% .r Cor)ner?s real role <it0in #.=* <0i'0 <as sim5l$ t0at o% a salesman
5ro;i)in1 t0e ser;i'es o% a sales team t0rou10 .68
1-28 But it <as not :ust ;anit$ <0i'0 4 %in) )ro;e .r Cor)ner8 4 0a;e no )oubt t0at 0e
trie) to 5ull t0e <ool o;er .r Bar9le$?s e$es in a number o% res5e'ts8 He <as bein1
less t0an %ran9 <it0 .r Bar9le$ <0en 0e 5ur5orte) to 1o 0al;es on t0e 5ur'0ase o%
no8 52 +lo0a #o$al* <0ereas t0e 'ommission 0e <as 1ettin1 on t0e sale meant t0at 0e
<as 5a$in1 %ar less %or 0is 0al%/s0are t0an .r Bar9le$8 He t0en trie) to 'on'eal t0at
%a't %rom .r Bar9le$ b$ re%usin1 %or some time to eD5lain 0o< 0e 0a) 5ai) %or 0is
0al%/s0are* an) t0en b$ 5reten)in1 t0at t0e '0eAue %or B99*97" relate) to 0is 5ur'0ase
o% no8 52 +lo0a #o$al* <0ereas in %a't it relate) to 0is 5ur'0ase o% no8 52 (a %a't
<0i'0 0e trie) to 'on'eal b$ 50oto'o5$in1 t0e '0eAue in su'0 a <a$ as to )elete t0e
re'ei5t 0e 1ot %rom .r Hone)8
1--8 4n a))ition* .r Cor)ner <as less t0an %ran9 <0en it 'ame to 0is in'ome8 He eit0er
minimise) or eDa11erate) it as it suite) 0im8 3or eDam5le* 0is taD return %or t0e $ear
en)in1 5 +5ril 200> 1a;e a %i1ure %or 0is in'ome <0i'0 )i) not in'lu)e some o% t0e
'ommission 0e re'ei;e)8 4t )i) not in'lu)e t0e 'ommission 0e 1ot on t0e sale o% no8
52 +lo0a #o$al to 0imsel% an) .r Bar9le$* or on t0e sale o% no8 20 +lo0a #o$al to (ir
=eo%% an) .r 6o<er8 .r Cor)ner?s eD5lanation %or t0at <as t0at 0e 0a) use) t0is
'ommission %or ma9in1 %urt0er 5ro5ert$ in;estments* an) 0e belie;e) t0at 0e 0a) to
)e'lare it onl$ <0en t0e 1ain <as realise)* i8e8 <0en t0e 5ro5ert$ <0i'0 t0e
'ommission <as use) to 5a$ %or <as sol)8 W0en it <as 5ut to 0im t0at 0e 'oul) not
0a;e tol) 0is a''ountant about t0at 'ommission be'ause ot0er<ise 0e <oul) 0a;e
been a);ise) to )e'lare it* 0e sai) t0at 0e t0ou10t t0at 0e 0a) tol) 0is a''ountant
about it8 4 )o not belie;e 0im* an) t0is re;eale) somet0in1 else about .r Cor)ner*
<0i'0 is t0at <0en t0e 1oin1 1ets tou10* 0e )oes not min) 5uttin1 t0e blame on
someone else i% 0e t0in9s t0at <ill 0el58
1-"8 T0e %li5 si)e o% t0e 'oin is t0at .r Cor)ner eDa11erate) 0is in'ome <0en a55l$in1 %or
loans8 (o <0en 0e an) 0is <i%e a55lie) in (e5tember 2007 to t0e C0elten0am an)
=lou'ester Buil)in1 (o'iet$ %or t0eir 'urrent mort1a1e to be in'rease) to %un) t0eir
5ur'0ase o% t0e ,erin1s* .r Cor)ner 1a;e as 0is taDable in'ome %or t0at $ear
B>25*000* an) B710*000 %or t0e 5re;ious $ear8 W0en .r an) .rs Cor)ner a55lie)
to<ar)s t0e en) o% 200- to t0e Ban9 o% ('otlan) %or a loan in 'onne'tion <it0 t0e
5ur'0ase o% t0eir 5resent 0ouse* .r Cor)ner sai) t0at 0is annual in'ome <as
B500*0008 +n) <0en t0e$ a55lie) in 3ebruar$ 2009 to Blemain 3inan'e t) %or a
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
loan* .r Cor)ner sai) t0at 0is in'ome <as B21*000 a mont08 .r Cor)ner a)mitte)
t0at t0ese statements <ere not true* but 0e sou10t to :usti%$ <0at 0e 0a) sai) on t0e
basis t0at t0ese <ere Hsel%/'erti%ie)I a55li'ations* an) t0at 0e <as 'on%i)ent t0at 0e
'oul) ser;i'e t0e loans %rom 0is %uture earnin1s8 T0is* 4 t0in9* )emonstrates anot0er
%a'et o% 0is '0ara'ter8 He is 5re5are) to sa$ t0in1s <0i'0 0e 9no<s to be untrue* an)
0e 0o5es t0at t0in1s <ill turn out in su'0 a <a$ t0at 0is untrut0s <ill not 0a;e
mattere)8
1-98 .oreo;er* 4 0a;e a stron1 sense t0at in t0e 'ourse o% 0is e;i)en'e .r Cor)ner trie)*
<0en %in)in1 0imsel% in a 'orner* eit0er to 'laim a loss o% memor$ or to ma9e t0in1s
u5 as 0e <ent alon18 4 %in) it )i%%i'ult* %or eDam5le* to belie;e t0at .r Cor)ner <as
unable to remember <0at t0e sums o% B72*000 an) B"7*0-7 5ai) to 0im on 1- &une
2007 an) 2- &une 2007 <ere %or* as <ell as t0e sum o% B"5*-1> 5ai) to Euro 6ro5ert$
(olutions t) on 1- &une 20078 +n) t0e best eDam5le o% .r Cor)ner ma9in1 t0in1s
u5 as 0e <ent alon1 <as <0en 0e <as tr$in1 to eD5lain <0$ 0e 0a) tol) some o% t0e
'laimants t0at t0ere <as onl$ one a5artment le%t at t0e s5e'iall$ )is'ounte) 5ri'e8 4t
<as o55ortunism* 4 t0in9* <0i'0 ma)e 0im sa$ t0at it <as one o% t0e a5artments t0at
0a) been bou10t b$ .r Bro1an <0ose sale 0a) %allen t0rou10* <0en 0e 0a) %or1otten
t0at %our o% t0e %i;e 5ro5erties bou10t b$ .r Bro1an <ere 5ent0ouses* not a5artments8
+not0er eDam5le o% t0at <as <0en 0e sai) t0at 0e 0a) sou10t .s Cam5aRa?s a);i'e
on 0is an) .r Bar9le$?s 5ur'0ase o% no8 52 +lo0a #o$al8 He realise) <0en 0e <as in
t0e <itness boD t0at <0en it 'ame to 5ro5ert$ 0e <as bu$in1 0imsel% 0e 0a) to s0o<
t0at 0e 0a) %ollo<e) t0e 1ol)en rule state) in #.=?s bro'0ure about 1ettin1 le1al
a);i'e8
1"08 The tracing claim8 Ha;in1 sai) all t0at* t0e %eature o% t0e e;i)en'e <0i'0 <as most
'a5able o% )ama1in1 .r Cor)ner?s 're)ibilit$ relate) to <0at 0a55ene) to t0e
B251*->" <0i'0 .r Cen$on 5ai) %or 0is a5artment8 +lt0ou10 t0e e;i)en'e on t0at
to5i' is most rele;ant to .r Cen$on?s tra'in1 'laim* 4 )eal <it0 it 0ere be'ause o% t0e
im5a't it 0as on .r Cor)ner?s 're)ibilit$8
1"18 4t <as on 9 &anuar$ 200> t0at .r an) .rs Cor)ner entere) into a memoran)um o%
sale %or t0e 5ur'0ase o% t0e ,erin1s %or B187m8 (0ortl$ a%ter<ar)s* t0e C0elten0am
an) =lou'ester Buil)in1 (o'iet$ <as in%orme) t0at t0e$ reAuire) a loan o% B9>2*0008
Contra'ts <ere eD'0an1e) on 2> 3ebruar$ 200>* an) 'om5letion <as %iDe) %or 70
+5ril 200>8 + %e< )a$s be%ore t0e eD'0an1e o% 'ontra'ts* B25*000 0a) been re'ei;e)
b$ .r an) .rs Cor)ner?s soli'itors G B50*000 %rom #.=?s a''ount at Ban'o )e
(aba)ell* an) B15*000 %rom t0e 4n)e5en)ent .ort1a1e Net<or98 (o <it0 t0e
B9>2*000 %rom t0e C0elten0am an) =lou'ester an) t0e B25*000* .r an) .rs Cor)ner
still nee)e) to %in) B7>7*000 5lus an a))itional sum %or 'osts an) ot0er
)isbursements8 .r Cor)ner t0ou10t t0at t0e net 5ro'ee)s o% t0e sale o% t0eir 'urrent
0ouse <oul) 'ome to about B50*0008 .r Cen$on a1ree) to len) 0im B>0*000* an)
)i) so* but .r Cor)ner a''e5ts t0at b$ late .ar'0 200> 0e still nee)e) to raise HAuite
a lotI to 'om5lete t0e 5ur'0ase o% t0e ,erin1s8 4n)ee)* t0ere <as an a))itional
'om5li'ation* <0i'0 <as t0at alt0ou10 .r Cor)ner <as 5lannin1 to sell 0is 'urrent
0ouse at t0e same time* t0ere <as a 5roblem to )o <it0 a stri5 o% lan)* an) 0e mi10t
not 0a;e t0e net 5ro'ee)s o% sale o% 0is 'urrent 0ouse to 5ut into t0e 5ot8 (His %ears
turne) out to be :usti%ie)8 His 'urrent 0ouse 'oul) not be sol) until later in t0e $ear*
an) in t0e meantime t0e 0ouse <as rente) to t0e 5eo5le <0o e;entuall$ bou10t it8)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
1"28 .r Cen$on?s '0eAue %or B251*->" %or no8 2> +lo0a #o$al <as )ate) 29 .ar'0 200>8
+s 4 sai) at [112] abo;e* t0e )a$ it <as 'leare) .r Cor)ner <rote a '0eAue %or t0at
amount )ra<n on #.=?s a''ount <it0 Ban'o )e (aba)ell 5a$able to 0is soli'itors8
T0at sum* to1et0er <it0 t0e B50*000 5re;iousl$ re'ei;e) an) a %urt0er B15*000
subseAuentl$ re'ei;e) %rom #.=* amount to sums totallin1 B712*->" bein1 5ai) b$
#.= to .r Cor)ner?s 'on;e$an'in1 soli'itors8 .r Cor)ner?s 'ase is t0at t0e t0ree
sums re5resente) t0ree se5arate loans ma)e to 0im on se5arate )ates b$ .r Hone8
W0$ s0oul) .r Hone 0a;e )one t0at G es5e'iall$ at a time <0en 0e <as 0imsel%
loo9in1 %or B7m to %un) a 5ro:e't in Teneri%eP +n) <oul) 0e reall$ 0a;e lent all t0is
mone$ to .r Cor)ner <0en 0e <as tr$in1 to 1et .r Cor)ner an) (ir =eo%% to len)
0im mone$ <it0 a return o% -0K o;er 1" mont0sP .r Cor)ner?s eD5lanation %or t0at
<as t0at .r Hone 'oul) see t0at .r Cor)ner <as in a 5ani' about raisin1 <0at 0e
nee)e) to bu$ t0e ,erin1s* an) 0e a1ree) to 0el5 .r Cor)ner out be'ause 0e 'oul)
see t0at .r Cor)ner?s nee) at t0e time <as 1reater t0an 0is8 4n a))ition 0e ;alue) .r
Cor)ner as a salesman* an) )i) not <ant to )o an$t0in1 <0i'0 ris9e) losin1 .r
Cor)ner?s ser;i'es8 T0at <as <0$* sa$s .r Cor)ner* .r Hone tol) 0im t0at i% 0e
'oul) sell one o% t0e 5ro5erties at +lo0a #o$al 0e <oul) len) .r Cor)ner t0e amount
.r Cor)ner raise) on t0e sale8
1"78 (0ortl$ a%ter t0e issue o% t0ese 5ro'ee)in1s* .r Cor)ner <as or)ere) to s<ear an
a%%i)a;it ans<erin1 a lon1 reAuest %or in%ormation8 Fne o% t0e t0in1s 0e <as as9e)
<as 0o< .r Cen$on?s '0eAue %or B251*->" 0a) been a55lie)8 He sim5l$ sai) t0at it
0a) been 5ai) into #.=?s a''ount <it0 Ban'o )e (aba)ell on about 29 .ar'0 200>8
He )i) not 1o on to sa$ t0at t0e same amount 0a) t0en been 5ai) out to 0is
'on;e$an'in1 soli'itors b$ '0eAue on t0e ;er$ )a$ on <0i'0 .r Cen$on?s '0eAue 0a)
been 'leare)* an) t0at t0is '0eAue <as a loan %rom .r Hone to 0el5 0im 5ur'0ase t0e
,erin1s8 .r Cor)ner sa$s t0at it <as not t0e 'ase t0at 0e 0a) %or1otten t0at8 4t <as
sim5l$ t0at 0e )i) not t0in9 t0at 0e <as bein1 reAuire) to 1i;e t0at in%ormation8
Ho<e;er* s0ortl$ a%ter<ar)s t0e 'laimants? soli'itors learnt o% t0e '0eAue %or
B251*->"800 5a$able to .r Cor)ner* an) t0e$ as9e) .r Cor)ner?s soli'itors <0at t0e
'0eAue <as %or8 T0at <as <0en .r Cor)ner?s soli'itors sai) t0at t0e '0eAue
re5resente) a loan %rom .r Hone to<ar)s .r Cor)ner?s 5ur'0ase o% t0e ,erin1s* an)
in a subseAuent letter im5lie) t0at .r Cor)ner?s %ailure to mention t0at in 0is a%%i)a;it
<as be'ause 0e 0a) %or1otten t0at t0e mone$ %rom .r Cen$on 0a) been use) %or t0at
5ur5ose8 T0e 'laimants? soli'itors t0en Auerie) <0et0er t0e omission 0a) been
t0rou10 %or1et%ulness or <0et0er it 0a) been )eliberate* an) .r Cor)ner?s soli'itors
'on%irme) t0at it 0a) :ust been %or1otten8
1">8 .r Cor)ner <oul) not 0a;e %or1otten t0at8 #ealisin1* so it is sai)* t0at no/one <oul)
belie;e t0at 0e 0a) %or1otten <0at 0e 0a) use) .r Cen$on?s mone$ %or* .r Cor)ner
sai) in e%%e't t0at 0is soli'itors 0a) been <ron18 He <oul) not 0a;e tol) t0em t0at 0e
0a) %or1otten <0at t0e mone$ 0a) been use) %or8 +lt0ou10 0e a'9no<le)1e) t0at 0is
soli'itors are unli9el$ to 0a;e 'on%irme) t0at t0e omission %rom 0is a%%i)a;it 0a) been
)ue to %or1et%ulness <it0out s5ea9in1 to 0im on'e a1ain* 0e maintaine) t0at t0e
reason %or t0e omission <as be'ause 0e t0ou10t t0at 0e <as onl$ bein1 as9e) <0at
0a) 0a55ene) to .r Cen$on?s '0eAue* not <0at 0a) 0a55ene) to 0is mone$
t0erea%ter8
1"58 4n a))ition to all t0at* t0ere are a number o% 'urious %eatures about t0ese loans i% t0at
is <0at t0e$ <ere8 3irst* .r Cor)ner a'9no<le)1e) t0at t0ere <ere no terms o% t0e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
loans as to interest or re5a$ment8 4n)ee)* .r Cor)ner a''e5te) t0at .r Hone 0a)
ne;er as9e) 0im %or re5a$ment* an) t0e loans remain outstan)in18 .r Cor)ner sa$s
t0at 0e 0as not ta9en an$ ste5s to re5a$ .r Hone be'ause it is .r Hone <0o o<es
0im mone$ G bot0 un5ai) 'ommission an) t0e losses 0e ma)e on 0is in;estments in
+lo0a #o$al an) +l)ea Bea'08
1"28 (e'on)l$* .r Cor)ner <oul) be entitle) to 'ommission on t0e sale o% no8 2> +lo0a
#o$al to .r Cen$on* but t0e le;el o% t0at 'ommission <as ne;er )is'usse)* e;en
t0ou10 t0e 5ri'e <0i'0 .r Cen$on 0a) to 5a$ %or it <as L720*000* mu'0 more t0an
an$ o% t0e ot0er 'laimants 0a) to 5a$ %or t0eir a5artments8 .r Cor)ner sim5l$
assume) t0at t0e 'ommission <oul) be t0e same as be%ore* i8e8 L">*700* t0ou10 0e )i)
not )is'uss t0at <it0 .r Hone be'ause 0e <as 0a55$ <it0 'ommission at t0at rate8
But t0e real 5oint 0ere is t0at i% .r Hone 0a) been 5re5are) to let .r Cor)ner treat
<0at .r Cen$on 0a) 5ai) as a loan* <0$ <as .r Cor)ner?s 'ommission o% L">*700
not set o%% a1ainst t0at* so t0at 0e 'oul) be treate) as 0a;in1 borro<e) B251*->" less
t0at 'ommissionP .r Cor)ner 0a) no ans<er to t0at8
1"-8 T0ir)l$* .r Cor)ner a''e5te) t0at a%ter t0ese e;ents 0e 'ontinue) to earn 'ommission*
<0i'0 .r Hone 5ai) 0im8 W0$ )i) .r Hone not ta9e out o% t0at 'ommission t0e
B712*->" <0i'0 .r Cor)ner 'laims 0e o<e) .r HoneP .r Cor)ner?s ans<er to t0at
<as t0at .r Hone <as 5reo''u5ie) in 9ee5in1 0is business 1oin1* es5e'iall$ t0e
5ro5erties 0e <as mar9etin1 in 6ortu1al* %or <0i'0 .r Cor)ner <as earnin1 1oo)
'ommission8 .r Hone 9ne<* sa$s .r Cor)ner* t0at i% 0e <it00el) an$ o% t0e
'ommission 0e o<e) .r Cor)ner* .r Cor)ner <oul) not be able to 5ass on t0e
'ommission to 0is salesmen8 H4t <as a train 'reatin1 mone$I* 0e sai)8 HHe <asn?t
1oin1 to s0ut me o%%8I
1""8 4n %airness to .r Cor)ner* it s0oul) be sai) t0at .r Hone 0as 'on%irme) t0at 0e ma)e
t0ese loans to .r Cor)ner8 Fn 2" No;ember 200- 0e <rote* in a letter a))resse) HTo
<0om it ma$ 'on'ernI:
H4 'an 'on%irm t0at 4 lent .ar9 Cor)ner a series o% loans to
5ur'0ase 0is ne< 0ome t0eir [sic] <as B50*000800 loan on 12
3ebruar$ 200>* t0ere <as a %urt0er B251*->" on 5 +5ril 200>
an) a %urt0er B15*000800 on 22 +5ril 200>8 T0is <as a
5ersonal loan %rom m$sel% an) t0e monies* i8e8 B712*->"* is still
outstan)in18I
Ho<e;er* .r Cor)ner )i) not list t0ese loans <0en 0e 0a) to set out 0is eDistin1
'ommitments at t0e time 0e an) 0is <i%e a55lie) to t0e Ban9 o% ('otlan) in 200- %or a
loan8 .oreo;er* t0e letter <as <ritten almost %our $ears a%ter t0e loans <ere
su55ose)l$ ma)e* an) it is not su11este) t0at t0ere are an$ 'ontem5oraneous
)o'uments e;i)en'in1 t0em8 +n) in an$ e;ent* t0e 'ir'umstan'es in <0i'0 .r
Hone?s letter <as <ritten are im5ortant8 +t t0e time* .r Cor)ner?s taD a%%airs <ere
bein1 in;esti1ate) b$ t0e #e;enue* an) <0en .r Cor)ner 1ot t0is letter* 0e sent it
strai10t o%% to 0is a''ountant* 0a;in1 5re;iousl$ as9e) 0is 'on;e$an'in1 soli'itors to
remin) 0im <0ere t0e %un)s %or t0e 5ur'0ase o% t0e ,erin1s 0a) 'ome %rom
(5resumabl$ be'ause 0e 0a) no )o'uments o% 0is o<n to re%res0 0is memor$ o% t0ese
loans)8 +lt0ou10 it <as ;e0ementl$ )enie) b$ .r Cor)ner* t0ere is a stron1
sus5i'ion at t0e ;er$ least t0at .r Cor)ner %irst %oun) out %rom 0is 'on;e$an'in1
soli'itors <0i'0 o% t0e sums 0a) 'ome %rom #.=* an) arme) <it0 t0at in%ormation
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
0e as9e) .r Hone to 5ro;i)e 0im <it0 a letter sa$in1 t0at t0e t0ree 5a$ments <ere
loans so t0at 0e 'oul) eD5lain to t0e #e;enue t0at t0e$ <ere somet0in1 ot0er t0an
in'ome %or <0i'0 0e <as liable to be taDe)8 T0e 5oint 'an be ma)e* 4 t0in9* t0at i%
t0ese in)ee) 0a) been loans in 200>* .r Hone?s letter in 200- <oul) 0a;e 1one on to
sa$ t0at t0e amount outstan)in1 on t0e loans 0a) been re)u'e) b$ L">*700* bein1 t0e
'ommission 5a$able to .r Cor)ner on t0e sale to .r Cen$on o% no8 2> +lo0a #o$al8
1"98 4n)ee)* t0ere is a 1oo) )eal to su11est t0at .r Hone )i) not 9no< about t0e sale o%
no8 2> to .r Cen$on* an) t0ere%ore 0is '0eAue %or B251*->"* until mu'0 later8 .r
Cen$on?s <as t0e one a5artment %or <0i'0 one o% #.=?s stan)ar) 5ro5ert$
reser;ation s0eets 0as not been )is'lose)* an) 0is 'ontra't o% sale )i) not arri;e until
20058 4t <as t0ere%ore su11este) t0at it <as onl$ t0en t0at .r Hone 9ne< t0at no8 2>
+lo0a #o$al 0a) been sol) to .r Cen$on* an) onl$ t0en t0at .r Hone 0a) )is'o;ere)
<0at .r Cor)ner 0a) )one <it0 t0e 5ro'ee)s o% .r Cen$on?s '0eAue8 T0at <oul)
eD5lain <0$ .r Cor)ner <as remo;e) as a si1nator$ %rom #.=?s a''ount at Ban'o
)e (aba)ell on 29 .ar'0 20058 .r Hone <as an1r$ at .r Cor)ner?s use o% t0e
mone$ in t0at a''ount %or 0is o<n 5ur5oses8 .r Cor)ner )enie) t0at8 He sai) t0at
.r Hone 9ne< about t0e sale o% no8 2> to .r Cen$on at t0e time8 He a))e) t0at 0e
0a) been ma)e a si1nator$ on t0e a''ount sin'e .r Hone <as in (5ain so mu'0 o% t0e
time an) 0e <as in En1lan)8 4t enable) .r Cor)ner to 5a$ .6?s an) #.=?s
eD5enses in t0e JC8 His remo;al as a si1nator$ <oul) 0a;e been be'ause .r Hone?s
son 0a) ta9en o;er res5onsibilit$ %or t0e runnin1 o% #.=?s o%%i'e in En1lan) b$ t0en8
4t 'oul) be sai)* t0ou10* t0at t0at mi10t be a reason %or a))in1 .r Hone?s son as a
si1nator$8 4t <as not a reason %or remo;in1 .r Cor)ner as one8
1908 T0at lea)s me to one %inal 5oint on t0is 5art o% t0e 'ase8 Fne o% t0e man$ t0in1s
<0i'0 .r Cor)ner <as or)ere) to 1i;e in%ormation about on a%%i)a;it <as <0o all t0e
si1natories on #.=?s a''ount at Ban'o )e (aba)ell <ere8 His res5onse <as t0at 0e
)i) not 9no< <0o t0e$ <ere8 T0at <as a sur5risin1 ans<er in ;ie< o% t0e ;er$ man$
'0eAues 0e 0a) )ra<n on t0e a''ount in t0e 21 mont0s or so )urin1 <0i'0 0e 0a)
been one o% t0e si1natories8 His eD5lanation <as: H4 ans<ere) t0e Auestion as Aui'9l$
as 4 'oul)8 .$ 0ea) <as u5 in t0e air at t0e time <it0 all t0e in%ormation 4 <as bein1
reAuire) to 1i;e8 4 )i)n?t 1i;e it as mu'0 t0ou10t as 4 s0oul)8I
1918 +ll in all* 4 am 'om5letel$ un'on;in'e) t0at t0e B251*->" <0i'0 .r Cor)ner 5ai) to
0is 'on;e$an'in1 soli'itors <as lent to 0im b$ .r Hone8 .r Hone <oul) not 0a;e
)reamt o% )oin1 t0at at a time <0en 0e <as tr$in1 to raise mone$ 0imsel%* e;en i% (a)
0is 'laim t0at it <as %or a 5ro:e't in Teneri%e <as bo1us* an) (b) 0e 0a) no intention o%
1i;in1 an$one <0o lent 0im an$ mone$ t0e -0K return on t0eir in;estment t0at 0e
<as 5romisin18 E;er$t0in1 4 9no< about .r Hone G an) <0at 4 sus5e't 0e t0ou10t
o% .r Cor)ner G is 'om5letel$ at o))s <it0 t0e i)ea t0at 0e <as )es5erate to 9ee5 .r
Cor)ner be'ause o% 0is ;alue as a salesman8 T0e absen'e o% (a) an$ terms relatin1 to
interest or re5a$ment* (b) an$ )o'uments e;i)en'in1 t0e loans* (') an$ re%eren'e to
t0e loans <0en .r Cor)ner liste) 0is 'ommitments %or t0e Ban9 o% ('otlan)* ()) an$
)eman) b$ .r Hone %or re5a$ment an) (e) an$ attem5t b$ .r Hone to set o%% su'0
'ommission as .r Cor)ner <as o<e) a1ainst t0e loans are all in'onsistent <it0 t0e
eDisten'e o% t0e loans8 4n a))ition* t0ere is t0e 5robabilit$ G as 4 %in) it to be G t0at
.r Home )i) not 9no< about t0e sale o% no8 2> +lo0a #o$al to .r Cen$on* an)
t0ere%ore 0is '0eAue %or B251*->"* %or some time* an) t0at 0e <as so 'on'erne) about
<0at it 0a) been use) %or <0en 0e )i) )is'o;er it t0at 0e 0a) .r Cor)ner?s name
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
remo;e) %rom t0e list o% si1natories on #.=?s ban9 a''ount8 W0en $ou 'ou5le all
t0at <it0 <0at 4 %in) to be .r Cor)ner?s attem5t to 'on'eal %rom t0e 'laimants?
soli'itors 0o< t0e mone$ 5ai) o;er b$ .r Cen$on <as e;entuall$ use)* it is
unsur5risin1 t0at .r Hone?s letter o% 2" No;ember 200- 5ur5ortin1 to 'on%irm t0e
loans 'arries ;er$ little <ei10t G es5e'iall$ <0en $ou remember t0e 'ir'umstan'es in
<0i'0 t0at letter 'ame to be <ritten8
1928 .r Cor)ner?s %alse 'laim* t0ere%ore* t0at 0e <as lent t0e 5ro'ee)s o% .r Cen$on?s
'0eAue b$ .r Hone is a si1ni%i'ant matter <0en it 'omes to assessin1 .r Cor)ner?s
're)ibilit$ as a <itness8 Ha;in1 sai) t0at* it is im5ortant not to 5la'e un)ue <ei10t
on it in t0e <i)er s'0eme o% t0in1s8 &ust be'ause .r Cor)ner 5reten)e) t0at 0e 0a)
.r Hone?s 5ermission to ta9e t0e mone$ at t0e time )oes not be1in to mean t0at 0e
sai) e;er$t0in1 <0i'0 t0e 'laimants sa$ 0e sai) to t0em* nor )oes it ne'essaril$ mean
t0at 0e 9ne< t0at some o% t0e t0in1s t0at 0e sai) <ere untrut0%ul8 F;erstatin1 $our
in'ome to 1et a mort1a1e an) un)erstatin1 it to t0e #e;enue to re)u'e $our liabilit$ to
taD ma$ be <ron1* but it )oes not mean t0at $ou lie to $our %rien)s as <ell8
5. The special deal
1978 The secret nature of the special deal8 T0ere are a number o% t0in1s <0i'0 su11est
t0at t0e s5e'ial )eal relatin1 to t0e 10 a5artments at +lo0a #o$al <as a 5ersonal )eal
bet<een .r Hone an) .r Cor)ner (rat0er t0an one bet<een .r Hone an) .6)* an)
t0at it <as to be 9e5t 'on%i)ential8 T0at is not :ust be'ause t0ere <as not0in1 in
<ritin1 about it at all* let alone an a1reement settin1 out its terms8 4t is also be'ause
(a) no in;oi'es %or t0e 'ommission <ere submitte) b$ .6 (sa;e %or :ust one) an) (b)
t0e 'ommission <as 5ai) to .r Cor)ner 5ersonall$8 T0e e%%e't <as t0at t0e
'ommission <0i'0 .r Cor)ner re'ei;e) )i) not 1o t0rou10 .6?s boo9s* an) 'oul)
not t0ere%ore be 5i'9e) u5 b$ .6?s au)itors8 4n)ee)* .r Cor)ner )i) not )e'lare
t0e 'ommission 0e re'ei;e) to t0e #e;enue on 0is o<n taD returns8
19>8 T0e one eD'e5tion to t0e 'om5lete absen'e o% an$ in;oi'es %rom .6 %or t0e
'ommission <as .6?s in;oi'e no8 #.JC02 )ate) 11 ,e'ember 2007 %or L21*200
%or (ir =eo%%?s an) .r 6o<er?s 5ur'0ase o% no8 20 +lo0a #o$al8 T0at neatl$ ties in
<it0 .r Cor)ner?s note to .r Hone re%erre) to at [10"] abo;e in <0i'0 .r Cor)ner
sai) t0at he <oul) be submittin1 an in;oi'e %or t0is amount on his neDt in;oi'e* <0i'0
rat0er su11ests t0at .6?s submission o% t0e in;oi'e <as a mista9e8 F% 'ourse* t0e
absen'e o% an$ ot0er in;oi'es %rom .6 ma$ be )ue to t0in1s li9e missin1
5a5er<or9* but %our 5oints s0oul) be note)8
1958 3irst* atta'0e) to t0e 5ro5ert$ reser;ation s0eet o% 17 &une 2007 %or .r 4nno'ent?s
5ur'0ase o% no8 22 +lo0a #o$al is a sli5 o% 5a5er on <0i'0 .r Cor)ner <rote: HNo
'omm )ueI8 He <rote somet0in1 similar )o<n t0e si)e o% t0e 5ro5ert$ reser;ation
s0eet o% 19 +u1ust 2007 (but o;er<ritten 1" &une 2007) relatin1 to .r an) .rs
#oberts? 5ur'0ase o% no8 2" +lo0a #o$al8 .r Cor)ner?s eD5lanation %or t0at <as t0at
0e <as tellin1 .r Hone t0at 0is 'ommission 0a) been 5ai) on t0ese 5ur'0ases8 W0en
it <as su11este) to 0im t0at i% t0at <as t0e 'ase* 0e <oul) 0a;e ma)e a similar note
<0ene;er 0is 'ommission <as 5ai)* an) 0e )i) not )o t0at* 0is ans<er <as t0at $ou
0a;e )i%%erent <a$s o% )oin1 t0in1s at )i%%erent times* an) t0is 0a55ene) to be t0e <a$
0e <as re'or)in1 0is re'ei5t o% t0e 'ommission at t0at time8 + more 5lausible
eD5lanation* 4 t0in9* is t0at <0at 0e re'or)e) re5resente) 0is instru'tions to .6?s
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
au)itors* Ba9er Till$* t0at t0ere 0a) been no 'ommission )ue on t0e 5ur'0ases* an) so
t0e$ s0oul) not bot0er loo9in1 %or e;i)en'e o% it8
1928 (e'on)l$* .r Cor)ner sai) t0at in;oi'es <oul) not 0a;e been submitte) <0en 0is
'ommission <as set o%% a1ainst 0is o<n in;estments* as <as t0e 'ase <it0 t0e
'ommission 0e 1ot %rom t0e sale o% no8 52 +lo0a #o$al to 0imsel% an) .r Bar9le$*
an) t0e balan'e o% t0e 'ommission 0e 1ot %rom t0e sale o% no8 20 +lo0a #o$al to (ir
=eo%% an) .r 6o<er (<0i'0 <as set o%% a1ainst 0is 5ur'0ase o% no8 52 +lo0a #o$al
<it0 .r Bar9le$) an) t0e uni)enti%ie) 'ommission o% L9-*0"2 (<0i'0 <as set o%%
a1ainst 0is 5ur'0ase o% no8 52 +lo0a #o$al)8 T0e note 0e sent to .r Bar9le$ about
t0e %ormer* an) t0e one 0e ma)e on t0e bottom o% t0e 5ro5ert$ reser;ation s0eet %or
t0e latter* 'onstitute)* sai) .r Cor)ner* t0e in;oi'es %or t0at 'ommission8 But t0ose
notes <oul) not 0a;e been su%%i'ient in;oi'es i% #.= 0a) <ante) to )e)u't its
eD5en)iture on 'ommission %rom its in'ome %or t0e 5ur5ose o% its o<n liabilit$ %or
taD* <0i'0 su11ests t0at #.= )i) not )e'lare to t0e taD aut0orities in (5ain <0at <as
ma)e on t0e sale o% t0e a5artments to <0i'0 t0e s5e'ial )eal relate)8 +n) in an$
e;ent t0is )oes not eD5lain t0e absen'e o% in;oi'es %or (ir =eo%%?s an) .r Ho5le$?s
5ur'0ase o% no8 90 +lo0a #o$al* .r 4nno'ent?s 5ur'0ase o% no8 22 +lo0a #o$al an)
.r an) .rs #oberts? 5ur'0ase o% no8 2" +lo0a #o$al8
19-8 T0ir)l$* amon1 t0e )o'uments )is'lose) b$ .r Cor)ner <as .6?s sales an)
'ommission re5ort8 (in'e t0e last entr$ <0i'0 is )ate) relate) to a 5ro5ert$ sol) on 9
3ebruar$ 200>* it must 0a;e 'ome into eDisten'e a%ter t0at )ate* i8e8 a%ter all t0e
'laimants (<it0 t0e eD'e5tion o% .r Cen$on) 0a) 5ur'0ase) t0eir a5artments8 T0ere
is no re%eren'e in t0at re5ort to .r Cor)ner?s o<n 5ur'0ase o% no8 52 +lo0a #o$al* or
to .r an) .rs #oberts? 5ur'0ase o% no8 2" +lo0a #o$al* or to (ir =eo%%?s an) .r
Ho5le$?s 5ur'0ase o% no8 90 +lo0a #o$al8 .r Cor)ner <as unable to eD5lain t0at*
an) it su11ests t0at t0e 'ommission on t0ose 5ur'0ases <ent to .r Cor)ner* rat0er
t0an .68
19"8 4t is true t0at .r 4nno'ent?s 5ur'0ase o% no8 22 +lo0a #o$al an) .r Bar9le$?s
5ur'0ase o% no8 52 +lo0a #o$al <it0 .r Cor)ner are re%erre) to in t0e re5ort8 But
t0e re5ort sa$s t0at no 'ommission <as )ue on .r 4nno'ent?s 5ur'0ase* an) it is silent
on <0et0er an$ 'ommission <as )ue on .r Bar9le$?s 5ur'0ase <it0 .r Cor)ner8 .r
Cor)ner sa$s t0at t0e entr$ relatin1 to .r 4nno'ent 5robabl$ meant t0at t0e
'ommission 0a) been 5ai)* an) t0e reason %or t0e absen'e o% an$ entr$ relatin1 to
'ommission on .r Bar9le$?s 5ur'0ase <as be'ause t0e 'ommission <as set o%%
a1ainst .r Cor)ner?s ot0er in;estments8 But t0e %ormer ans<er is not 'onsistent <it0
t0e <a$ t0e rest o% t0e re5ort <as 'om5ile)* an) t0e latter is im5lausible %or t0e reason
1i;en at [192] abo;e8 +lso re%erre) to in t0e re5ort is (ir =eo%%?s an) .r 6o<er?s
5ur'0ase o% no8 20 +lo0a #o$al* <0i'0 is 'onsistent <it0 t0at bein1 t0e onl$ eDam5le
o% .6 submittin1 an in;oi'e %or 'ommission on an a5artment to <0i'0 t0e s5e'ial
)eal relate)* but si1ni%i'antl$ t0at re%erre) to a 'ommission o% onl$ 9K o% t0e
5ur'0ase 5ri'e bein1 )ue8
1998 4n t0e interests o% 'om5leteness* 4 s0oul) a)) t0at t0ere is :ust one ot0er a5artment at
+lo0a #o$al re%erre) to in t0e re5ort8 4t is no8 5" <0i'0 t0e re5ort sai) <as sol) to
someone 'alle) Wil9o<s9i8 T0e re5ort sa$s t0at no 'ommission <as )ue on t0is sale8
.r Cor)ner t0ou10t ot0er<ise8 He t0ou10t it meant t0at t0e 'ommission )ue 0a)
been 5ai)8 .r Cor)ner belie;es t0at no8 5" <as one o% t0e a5artments to <0i'0 t0e
s5e'ial )eal relate)* but 0e also t0in9s t0at t0e a5artment <as a'tuall$ sol) b$ one o%
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
0is salesmen in .an'0ester* <0o 0a) reAueste) t0at t0e 5ri'e be re)u'e)8 .r
Cor)ner t0in9s t0at .r Hone a1ree) to t0at* an) t0at 0e 0a) to s0are t0e re)u'e)
'ommission <it0 t0e salesman8 W0et0er t0at a''ount is 'orre't or not* it )oes not
a%%e't t0e 'omments 4 0a;e ma)e about t0e rest o% t0e re5ort8
2008 3ourt0l$* t0e onl$ in;oi'e <0i'0 0as been )is'lose) %or 'ommission )ue on
a5artments to <0i'0 t0e s5e'ial )eal relates (a5art %rom .6?s in;oi'e no8 #.JC02)
is t0e one re%erre) to at [121] abo;e <0i'0 relate) to ne< sales as at 2- &une 20078
+s <ell as in;oi'in1 .r Hone %or t0e 'ommission o% L27*-00 )ue on .r Cor)ner?s
o<n 5ur'0ase o% no8 52 +lo0a #o$al* it also in;oi'e) .r Hone %or t0e 'ommission o%
L27*-00 )ue on .r 4nno'ent?s 5ur'0ase o% no8 22 +lo0a #o$al8 (in'e t0ere is no
re'or) o% an$ 5a$ment to .6 o% t0ese 'ommissions* it loo9s as t0ou10 t0e in;oi'e
<as submitte) b$ .r Cor)ner rat0er t0an .68 4t is also note<ort0$ t0at it <as
submitte) to .r Hone rat0er t0an to #.=8 4n)ee)* .r Cor)ner a''e5te) t0at all t0e
'ommission 5a$able on a5artments to <0i'0 t0e s5e'ial )eal relate) (sa;e %or t0e
L21*200 %or t0e sale o% no8 208 +lo0a #o$al to (ir =eo%% an) .r 6o<er) 'ame to 0im
5ersonall$* or <as treate) as 0a;in1 'ome to 0im 5ersonall$ as a result o% 0is use o%
t0e 'ommission to ma9e in;estments o% 0is o<n8
2018 4 turn to <0et0er an$ o% t0e 'ommission relatin1 to a5artments 'o;ere) b$ t0e s5e'ial
)eal <as )e'lare) %or taD 5ur5oses8 .r Cor)ner a''e5ts t0at <0en 0e use) t0e
'ommission <0i'0 <oul) ot0er<ise 0a;e been )ue to 0im to ma9e in;estments o% 0is
o<n* t0at 'ommission <oul) not 0a;e been in'lu)e) in eit0er .6?s or 0is o<n taD
returns8 He 'laims t0at t0at <as be'ause 0e belie;e)* albeit <ron1l$* t0at t0e
'ommission onl$ 0a) to be )e'lare) <0en t0e 1ain <as realise)8 4 )o not belie;e
0im8 .r Cor)ner also a''e5ts t0at t0e 'ommission <0i'0 <as a'tuall$ 5ai) rat0er
t0an use) b$ 0im to ma9e %urt0er in;estments <as not )e'lare) b$ 0im in 0is taD
returns8 But t0e reason %or t0at* so 0e sa$s* <as 0is belie% t0at t0e 'ommission 0a)
been 5ai) to .6* t0at t0e taD on it 0a) been 5ai) b$ .6* an) t0at 0e 0a) t0ere%ore
re'ei;e) t0e 'ommission net o% taD8 T0at <oul) 0a;e a55lie) to t0e 'ommission )ue
on t0e sale o% no8 22 +lo0a #o$al to .r 4nno'ent* no8 2" +lo0a #o$al to .r an) .rs
#oberts an) no8 90 +lo0a #o$al to (ir =eo%% an) .r Ho5le$8
2028 .6?s %inan'ial statements 5re5are) b$ Ba9er Till$ s0o< t0at .6?s turno;er %or t0e
$ear en)in1 70 (e5tember 2007 <as B297*522 an) %or t0e $ear en)in1 70 (e5tember
200> <as B511*9558 T0e 'ommission on t0e sale o% no8 22 +lo0a #o$al to .r
4nno'ent 0a) been )ue on 1- &une 2007* on t0e sale o% no8 90 +lo0a #o$al to (ir
=eo%% an) .r Ho5le$ on 1" +u1ust 2007* an) on t0e sale o% no8 2" +lo0a #o$al to .r
an) .rs #oberts on 19 +u1ust 20078 T0e last t<o 5a$ments <ere )ue relati;el$ soon
be%ore .6?s %inan'ial $ear 'ame to an en)* an) it ma$ be t0at* i% t0e$ 0a) been
a''ounte) %or at all* t0e$ <oul) 0a;e been a''ounte) %or in t0e $ear en)in1 70
(e5tember 200>8 (in'e t0ere is no brea9)o<n o% 0o< t0e turno;er %i1ures 0a) been
arri;e) at* it is not 5ossible to use .6?s %inan'ial statements to sa$ t0at .r Cor)ner?s
'laim t0at taD <as 5ai) on t0ose 'ommissions* albeit b$ .6 rat0er t0an b$ 0im* is
untrue8 But t0e stron1 5robabilit$ is t0at taD <as not 5ai) b$ .6 on t0ese
'ommissions* sin'e t0e absen'e o% in;oi'es %or t0em stron1l$ su11ests t0at t0e$ )i)
not 1o t0rou10 .6?s boo9s at all8 4 t0ere%ore )o not belie;e 0is 'laim t0at 0e
t0ou10t t0at t0e a55ro5riate taD on t0is 'ommission 0a) been 5ai) b$ .68
2078 The benefit of the e6change rate8 Fne o% t0e %eatures o% t0e s5e'ial )eal a);an'e) on
t0e 'laimants? be0al% relate) to t0e eD'0an1e rate8 T0eir 'ase is t0at <0at .r Hone
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<ante) to 1et out o% t0e s5e'ial )eal <as L217*000 %or ea'0 o% t0e a5artments8 (in'e
t0e a5artments <ere to be mar9ete) in t0e JC* it <as 5lain t0at man$ i% not all o% t0e
5ur'0asers <oul) <ant to 5a$ %or t0eir a5artments in sterlin18 (in'e t0e eD'0an1e
rate at t0e time <as in t0e re1ion o% B1800 to L18>0* an) sin'e 217*000 D 18> amounts
to 29"*200* .r Hone <as 'ontent (a) %or t0e a5artments to be mar9ete) at L29"*000*
(b) %or an$ 5a$ments in sterlin1 to be 'on;erte) into euros at t0e rate o% B1800 to
L18>0* an) (') %or .r Cor)ner to 0a;e t0e bene%it o% an$ %lu'tuations in t0e eD'0an1e
rate8 To 1i;e an eDam5le* su55ose t0e 5ur'0aser 5ai) B212*000 %or 0is a5artment* but
at t0e time o% 5a$ment* t0e eD'0an1e rate <as B1800 to L18>7* so t0at t0e 5ur'0aser in
%a't 5ai) L707*120 (i8e8 B212*000 D 18>7)* .r Hone <as 'ontent %or t0e 5ur'0aser to
be treate) as 0a;in1 5ai) L29"*000* an) %or .r Cor)ner?s 'ommission to be t0e
)i%%eren'e bet<een L217*000 an) L707*120* i8e8 L90*120* rat0er t0an L">*7008
20>8 T0is <as sai) to be borne out b$ ;arious notes <0i'0 .r Cor)ner ma)e on t0e
5ro5ert$ reser;ation s0eets8 3or eDam5le* it <ill be re'alle) t0at .r 4nnno'ent 5ai)
B212*000 %or 0is a5artment8 Fn 0is 5ro5ert$ reser;ation s0eet* .r Cor)ner <rote
t0at t0e B212*000 0a) been 5ai) on t0e basis o% an eD'0an1e rate o% B1800 to L18>08
He a))e) t0e <or)s: H6lease 5a$ ba'9 in %orm o% 'as0!'0eAue an$ monies o;er5ai)
<0en <e neDt meet8I (imilarl$* .r #oberts 5ai) B211*7>- %or 0is a5artment8 Fn 0is
5ro5ert$ reser;ation s0eet* .r Cor)ner a))e) t0e <or)s HN i% better t0an 18>0 rate*
s0oul) be 18>>8I W0at .r Cor)ner <as sa$in1 <as t0at t0e amount <0i'0 .r
#oberts 0a) 5ai) <as base) on an eD'0an1e rate o% B1800 to L18>0* but t0at 0e t0ou10t
t0at t0e eD'0an1e rate at t0e time 0a) been B1800 to L18>>8 4n %a't* t0e B211*7>-800
<0i'0 .r #oberts 0a) 5ai) %or 0is a5artment <as eAui;alent to L29"*000 at an
eD'0an1e rate o% B1800 to L18>1* but <0ate;er t0e eD'0an1e rate <0i'0 0a) been use)
to 'al'ulate <0at .r #oberts 0a) to 5a$ in sterlin1* .r Cor)ner <as sa$in1 t0at t0e
amount <0i'0 .r #oberts s0oul) 0a;e 0a) to 5a$ in sterlin1 <as onl$ B202*9>> (i8e8
L29"*000 D 18>>)* an) i% .r Cor)ner <as 'orre't in sa$in1 t0at t0is <as t0e eD'0an1e
rate at t0e time o% .r #oberts? 5a$ment* t0e )i%%eren'e bet<een B211*7>- an)
B202*9>> <as t0e amount <0i'0 t0e 'laimants sa$ .r Cor)ner <as entitle) to in
a))ition to 0is 'ommission o% L">*7008
2058 4 'annot 1o alon1 <it0 t0is 0$5ot0esis at all8 .r Cor)ner?s notes on t0e 5ro5ert$
reser;ation s0eets are :ust as 'onsistent <it0 the claimants bein1 reimburse) an$
amount <0i'0 t0e$ o;er5ai) i% t0e sterlin1 5a$ments t0e$ ma)e <ere in eD'ess o% t0e
sterlin1 eAui;alent o% L29"*000 at t0e eD'0an1e rate 5re;ailin1 at t0e time as .r
Cor)ner 1ettin1 t0e bene%it o% it8 4n)ee)* .r Cor)ner?s e;i)en'e G <0i'0 4 0a;e no
real reason to )oubt G <as t0at 0e re%erre) on t0e 5ro5ert$ reser;ation s0eets to t0e
%a't t0at t0e 5ur'0ase 5ri'e 0a) been 5ai) in sterlin1 or to t0e eD'0an1e rate so t0at
#.= <oul) be a<are o% t0e nee) to reimburse t0ose 'laimants <0o 5ai) in sterlin18
4t ma$ be t0at 5eo5le li9e .r 4nno'ent an) .r #oberts <ere not in %a't reimburse)
an$t0in1 b$ #.=* but alt0ou10 t0at <as somet0in1 <0i'0 .r Cor)ner s0oul) 0a;e
%ollo<e) u5* it <oul) not 0a;e been sur5risin1 %or 0im not to )o so8 +%ter all* 0e
<oul) t0in9 t0at on'e 0e 0a) ma)e t0e sale* e;er$t0in1 else <as )o<n to ot0ers8
2028 .oreo;er* .r Cor)ner <as ma9in1 a 0u1e amount o% 'ommission on ea'0 sale8 4t
)oes not ma9e sense %or .r Hone to 0a;e been 'ontent %or .r Cor)ner to bene%it
%rom a);anta1eous %lu'tuations in t0e eD'0an1e rate as <ell* <it0out .r Cor)ner at
t0e same time runnin1 t0e ris9 o% a);erse %lu'tuations in t0e eD'0an1e rate8 .r 6eter
CnoD QC %or t0e 'laimants eD5ressl$ )isa;o<e) an$ su11estion t0at t0e 'laimants?
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
'ase <as t0at .r Hone <as 'ontent %or .r Cor)ner to 0a;e t0e bene%it o% an$
a);anta1eous %lu'tuations in t0e eD'0an1e rate i% 0e 0a) to bear as <ell t0e bur)en o%
an$ a);erse %lu'tuations in t0e eD'0an1e rate8 T0us* i% %lu'tuations in t0e eD'0an1e
rate %a;oure) t0e euro* so t0at t0e eD'0an1e rate at t0e time o% 5a$ment b$ t0e
5ur'0aser o%* sa$* B212*000 <as B1800 to L187-* (<it0 t0e result t0at t0e 5ur'0aser 0a)
in %a't 5ai) L290*>>0* i8e8 B212*000 D 187-)* it <as not 'onten)e) t0at .r Cor)ner 0a)
to settle %or t0e 5ur'0aser bein1 treate) as 0a;in1 5ai) L29"*000* <it0 t0e result t0at
.r Cor)ner?s 'ommission <oul) onl$ be t0e )i%%eren'e bet<een L217*000 an)
L290*>>0* i8e8 L--*>>0* rat0er t0an L">*7008
20-8 The real reason for the special deal8 T0at t0e 'laimants <ere o%%ere) a s5e'ial )eal
b$ .r Cor)ner be'ause .r Hone nee)e) to raise mone$ 0as ne;er seriousl$ been
)is5ute)8 W0at is more 'ontentious is <0$ 0e nee)e) to raise t0e mone$* an) i% it
<as to bu$ out a 5artner* <0et0er .r Cor)ner 9ne< t0at t0at <as untrue8
20"8 T0ere are a 'ou5le o% )o'uments <0i'0 t0e 'laimants sa$ 1i;e t0e 1ame a<a$8 Fne
is t0e 'ontra't %or t0e sale o% t0e %i;e 5ro5erties at +lo0a #o$al to .r Bro1an8 T0e
ot0er is a 'ontra't )ate) 22

+5ril 2002 bet<een .r Hone* Estella an) t<o 4ris0men*
6atri'9 Cullen an) 6atri'9 Cenn$ (Ht0e 4ris0 'ontra'tI)8 W0en t0e 4ris0 'ontra't <as
)is'lose)* t0e %irst t<o 5a1es o% .r Bro1an?s 'ontra't <ere 'li55e) to it8 W0at <as
a1ree) un)er t0e 4ris0 'ontra't <as t0at +@ul <as sellin1 no8 57 +lo0a #o$al to .r
Cullen an) .r Cenn$ %or L25>*01-8-- in'lusi;e o% 4E+8 Ho<e;er* t0e$ <oul) be
5a$in1 L>->*-99852 u5 %ront8 T0e )i%%eren'e o% L220*-"18-9 <oul) be treate) as a
loan ma)e b$ .r Cullen an) .r Cenn$* re5a$able on t0e eDe'ution b$ +@ul o% t0e
5ubli' )ee) o% sale8 T0e 0an)in1 o;er o% t0e a5artment an) t0e eDe'ution o% t0e
5ubli' )ee) o% sale 0a) to ta9e 5la'e b$ 70 &une 200>8 4n or)er to 1uarantee t0e
'om5letion Ho% t0is 'ontra't an) o% %i;e ot0er 'ontra'tsI* i8e8 to 1uarantee t0at t0e
5ro5erties <oul) be built* t0e )ee)s o% ,o;ereen (<0i'0 t0e 'ontra't re'or)e) o<ne)
50K o% t0e s0ares in +@ul) <ere to be lo)1e) <it0 Estella until 70 &une 200> to
1uarantee u5 to "00m 5esetas (rou10l$ eAui;alent to L>8"m an) 5resumabl$ an
estimate o% t0e 'onstru'tion 'osts) until 70 &une 200>8 4% t0e 5ubli' )ee) o% sale %or
no8 57 <as eDe'ute)* an) t0e L220*-"18-9 5ai) to .r Cullen an) .r Cenn$* b$ 70
&une 200>* t0e )ee)s in ,o;ereen <oul) be returne) to .r Hone8 4% eit0er o% t0ose
t0in1s )i) not 0a55en* t0e s0ares in ,o;ereen <oul) be trans%erre) to .r Cullen an)
.r Cenn$ an) ot0er bu$ers in t0e same situation as t0em in 5ro5ortion to t0e amount
o% t0eir in;estment8
2098 T0e e%%e't o% t0is 'ontra't <as t0at until t0e 'ontra'tual 'on)itions <ere satis%ie)* .r
Hone 'oul) not sell an$ %urt0er %lats at +lo0a #o$al t0rou10 +@ul <it0out Estella
'ountersi1nin1 an$ ne< 'ontra'ts o% sale G an) Estella 'oul) not )o t0at <it0out t0ere
bein1 a ban9 1uarantee in 5la'e8 4t <as 'li55e) to 5art o% .r Bro1an?s 'ontra't
be'ause someone must 0a;e realise) t0at t0e H%i;e ot0er 'ontra'tsI in t0e 4ris0
'ontra't 'oul) <ell relate to t0e %i;e 5ro5erties bou10t b$ .r Bro1an8 (o be%ore .r
Hone 'oul) sell an$ more a5artments at +lo0a #o$al <it0out a ban9 1uarantee in
5la'e* 0e 0a) to %in) <0at <as nee)e) to bu$ .r Bro1an* .r Cullen an) .r Cenn$
o%%8 He nee)e) about L2m to )o t0at8 T0at* sa$ t0e 'laimants* <as t0e lan) )eal
<0i'0 0e <as re%errin1 to <0en 0e <as sa$in1 t0at 0e <ante) to bu$ out 0is 5artner8
T0e su11estion is t0at .r Cor)ner 9ne< all about t0at* an) t0ere%ore 0a) .r Hone
o;er a barrel* be'ause 0e 9ne< t0at .r Hone 'oul) not sell an$ more a5artments t0ere
until 0e 0a) raise) t0e mone$8 4n)ee)* it <as su11este) to .r Cor)ner t0at it <as 0e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<0o 0a) as9e) %or su'0 a 0i10 rate o% 'ommission* an) t0at .r Cor)ner 9ne< t0at 0e
0a) to tell 5otential bu$ers t0at 0e <oul) sort out t0e le1al si)e o% t0in1s be'ause i%
t0e$ too9 le1al a);i'e o% t0eir o<n* t0e$ <oul) 0a;e )is'o;ere) t0at neit0er .r Hone
nor #.= o<ne) t0e lan) an) t0at t0e$ 0a) no ri10t to sell it8
2108 T0is elaborate an) in1enious ar1ument )oes not <or98 +lt0ou10 t0e 'onstru'tion o%
t0e %lats <as not eD5resse) to be one o% t0e t<o 'on)itions <0i'0 0a) to be satis%ie)
be%ore Estella <as no lon1er reAuire) to 'ountersi1n an$ ne< 'ontra't o% sale* t0at
<as 5resumabl$ <0at t0e 4ris0 'ontra't 'ontem5late)8 .oreo;er* t0e H%i;e ot0er
'ontra'tsI re%erre) to in t0e 4ris0 'ontra't 'oul) not 0a;e relate) to t0e %i;e 5ro5erties
bou10t b$ .r Bro1an be'ause .r Bro1an?s 'ontra't %or t0e 5ur'0ase o% t0e %i;e
5ro5erties <as )ate) 3ebruar$ "##+* almost > $ears a%ter t0e 4ris0 'ontra't8 But e;en
i% t0is <as <0at t0e s5e'ial )eal <as all about* 4 )o not t0in9 %or one moment t0at .r
Cor)ner <as in on it8 He <as ;isibl$ s0o'9e) <0en t0e 5enn$ )ro55e) <it0 0im
about <0at <as bein1 su11este)8 T0at <as not s0o'9 be'ause 0e 0a) not eD5e'te) to
be rumble)8 4t <as s0o'9 be'ause t0is <as not a s'enario <0i'0 0a) e;er o''urre) to
0im8
G. The representations
2118 T0e torts o% )e'eit an) ne1li1ent mis/statement )e5en) on <0et0er .r Cor)ner ma)e
t0e re5resentations 0e is alle1e) to 0a;e ma)e an) <0et0er t0e$ <ere %alse* an) in t0e
'ase o% )e'eit <0et0er 0e ma)e t0em 9no<in1 t0at t0e$ <ere %alse8 4n t0is 5art o% t0e
:u)1ment* 4 )eal <it0 t0e re5resentations 0e is alle1e) to 0a;e ma)e8 (in'e e;er$
alle1ation o% %rau) must be )istin'tl$ alle1e)* it is to t0e re5resentations re%erre) to in
t0e 6arti'ulars o% Claim* albeit 0ea;il$ amen)e)* t0at 4 turn8 4 bear in min) t0at
alle1ations o% %rau) nee) onl$ be 5ro;e) to t0e 'i;il stan)ar) o% 5re5on)eran'e o%
5robabilit$* t0ou10 more 'on;in'in1 e;i)en'e is reAuire) to establis0 %rau) t0an ot0er
t$5es o% alle1ation8
2128 4t <ill 0a;e been a55arent %rom m$ summar$ o% .r Cor)ner?s o<n a''ount o% 0is
)ealin1s <it0 t0e 'laimants t0at 0e )oes not )is5ute man$ o% t0e t0in1s <0i'0 t0e$
attribute) to 0im8 His 'ase is t0at t0e$ <ere eit0er true or t0at i% t0e$ <ere not 0e )i)
not 9no< t0at t0e$ <ere %alse8 But %or re5resentations <0i'0 0e )enies ma9in1 or at
least )oes not a)mit ma9in1* it 0as been ne'essar$ %or me to assess t0e reliabilit$ o%
t0e 'laimants as <itnesses8 4 stress t0eir Hreliabilit$I be'ause %or t0e most 5art t0eir
're)ibilit$ 0as not been at issue8 4 0a;e borne in min) t0at <0en t0e$ 1a;e e;i)en'e
t0e$ <ere tr$in1 to re'all 'on;ersations <0i'0 too9 5la'e 2 or - $ears a1o* an) t0at it
<as onl$ in t0e last $ear or so t0at t0e$ <ere as9e) to re'all 5re'isel$ <0at
.r Cor)ner 0a) sai) to t0em8 Nor is it t0e 'ase t0at it o''urre) to t0em <it0in a
s0ort time t0at .r Cor)ner ma$ 0a;e been t0e ;illain o% t0e 5ie'e* an) t0at means t0at
t0e$ <oul) not 0a;e 0a) o''asion <it0in a $ear or so to loo9 ba'9 on 5re'isel$ <0at it
<as t0at .r Cor)ner 0a) sai) to t0em8
2178 4 0a;e* o% 'ourse* borne in min) t0at man$ o% t0e 'laimants sa$ t0e$ <ere tol) broa)l$
t0e same t0in1* but t0at reall$ 'uts bot0 <a$s8 Fn t0e one 0an)* it 'oul) be sai) t0at
t0at 'on%irms t0at t0eir re'olle'tion is a''urate8 Fn t0e ot0er 0an)* t0e <is0
sometimes be'omes t0e %at0er to t0e t0ou10t* so t0at i% $ou 0a;e 0ear) <0at ot0er
5eo5le are sa$in1* t0en t0ere ma$ be a stron1 in'lination %or $ou to t0in9 t0at it <as
sai) to $ou as <ell8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
21>8 T0ere <as also a 5roblem <it0 one %eature o% t0e <itness statements* but in or)er to
eD5lain t0at 4 0a;e to )i1ress %or a moment8 4n a))ition to t0e e6press re5resentations
<0i'0 .r Cor)ner is alle1e) to 0a;e ma)e to t0em* it is ar1ue) on be0al% o% t0e
'laimants t0at some o% t0in1s <0i'0 t0e$ sa$ 0e sai) an) )i) impliedl( 'on;e$e) ot0er
t0in1s to t0em8 T0e im5li'ations <0i'0 t0e eD5ress re5resentations su55ose)l$ ma)e
to t0e 'laimants 'on;e$e) amount* so it is sai)* to a series o% im5lie) re5resentations8
.r &e%%eris sai) t0at t0e 'on'e5t o% a %rau)ulent im5lie) re5resentation is Hone t0at
seems in0erentl$ in'orre'tI8 4 )o not a1ree8 W0at is ne'essar$ %or t0ese im5lie)
re5resentations to be a'tionable is t0at bot0 t0e 'laimants an) .r Cor)ner must 0a;e
a55re'iate) t0at t0e eD5ress re5resentations 0e ma)e bore t0e im5li'ations <0i'0 are
alle1e)8 3i;e su'0 re5resentations <ere alle1e) in t0e 6arti'ulars o% Claim:
(i) (a) a 'om5an$ tra)in1 as t0e #o$al .arbella =rou5 'ontrolle) a 1rou5 o%
'om5anies* or at least t0ere <as an asso'iation o% 'om5anies <0i'0 'oul)
5ro5erl$ be 'alle) a H1rou5 o% 'om5aniesI* (b) t0e 1rou5 <as substantial* an) (')
t0e 'om5an$ or 1rou5 <as re5utable (Ht0e %irst im5lie) re5resentationI)U
(ii) #.= 0a) title to t0e site at +lo0a #o$al an) <as able to sell t0e a5artments
t0ere (Ht0e se'on) im5lie) re5resentationI)U
(iii) (a) #.= 'oul) la<%ull$ raise t0e 5ur'0ase 5ri'e u5 %ront as a matter o%
(5anis0 la<* (b) t0e 5ur'0ase 5ri'e 'oul) la<%ull$ be a55lie) %or bu$in1 out .r
Hone?s 5artner* an) (') #.= or .r Hone <ere inten)in1 to 'om5l$ <it0 (5anis0
la< in 'arr$in1 out t0e 'ontra'ts (Ht0e t0ir) im5lie) re5resentationI)U
(i;) .r Cor)ner or #.= inten)e) to arran1e %or la<$ers to )o t0e le1al <or9 %or
t0e 'laimants on t0eir 5ur'0ase o% a5artments at +lo0a #o$al (Ht0e %ourt0 im5lie)
re5resentationI)U
(;) (a) ea'0 o% t0e )eals <as a 1oo) one* an) #.= (or at least some relate)
entit$ 'ontrolle) b$ .r Hone) <as rea)$* <illin1 an) able to 'arr$ out t0e
)e;elo5ment an) 5ass 'lean title to t0e 'laimants <it0in t0e time %rames .r
Cor)ner mentione) or t0ereabouts* an) (b) t0ere <ere t0ere%ore 5ro5er
arran1ements in 5la'e to ensure t0at t0is <oul) 0a55en (Ht0e %i%t0 im5lie)
re5resentationI) or to ensure t0at t0is <oul) result so %ar as reasonabl$ 5ra'ti'able
(Ht0e alternati;e %i%t0 im5lie) re5resentationI)8
2158 T0is brin1s me ba'9 to t0e %eature o% t0e 'laimants? <itness statements <0i'0 is
troublin18 +))itional <itness statements <ere ta9en %rom (ir =eo%%* .r 4nno'ent* .r
#oberts* .r Bar9le$ an) .r Cen$on8 4n t0ose statements* t0e 'laimants 5ur5orte) to
a))ress a 5oint <0i'0 .r Cor)ner 0a) ma)e about t0e 'laimants 0a;in1 0a) 'onta't
or )ealin1s <it0 .r Hone* an) t0at t0e$ <oul) t0ere%ore 0a;e relie) more on <0at 0e
0a) sai) to t0em rat0er t0an an$t0in1 <0i'0 .r Cor)ner ma$ 0a;e sai)8 T0at <as
not stri'tl$ a''urate8 W0at t0e 'laimants <ere a'tuall$ )oin1 <as a))ressin1 <0et0er
t0e$ 0a) realise) t0at <0at .r Cor)ner 0a) sai) to t0em 'arrie) t0e ;arious
im5li'ations 5lea)e) in t0e 6arti'ulars o% Claim8 But more im5ortantl$* <0en t0e
'laimants 'ame to 1i;e oral e;i)en'e* it <as 5lain t0at some o% t0em 0a) not
un)erstoo) <0at 0a) been <ritten on t0eir be0al% an) <0at t0e$ 0a) si1ne) to8 3or
eDam5le* <0en it 'ame to t0e statement t0at t0e$ belie;e) t0at #.= <as able
Hla<%ull$ to raise t0e 5ur'0ase mone$ u5 %rontI or similar lan1ua1e* a number o%
t0em sai) eit0er t0at t0e$ )i) not 9no< <0at t0at meant or t0at t0e$ meant to sa$
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
somet0in1 else8 +''or)in1l$* in summarisin1 t0e e%%e't o% t0eir e;i)en'e* 4 0a;e*
<0ere ne'essar$* i1nore) <0at t0at 5art o% t0e <itness statements sai)* an)
'on'entrate) on <0at t0e 'laimants sai) in oral e;i)en'e t0e$ 0a) been tr$in1 to 1et
a'ross in t0ose 5assa1es8 Wit0 t0at 5re%a'e* 4 5ro5ose to )eal se5aratel$ <it0 ea'0 o%
t0e re5resentations* )ealin1 %irst <it0 re5resentations <0i'0 are sai) to 0a;e in)u'e)
t0e 'laimants to in;est in +lo0a #o$al* be%ore turnin1 to t0ose re5resentations <0i'0
are sai) to 0a;e in)u'e) (ir =eo%% to enter t0e 5romotional a1reement an) to len) .r
Hone t0e B750*0008
2128 RMG and its deelopments8 W0at .r Cor)ner is sai) to 0a;e tol) t0e 'laimants
about #.= an) its )e;elo5ments )i%%ere) %rom 'laimant to 'laimant8 He is sai) to
0a;e tol) (ir =eo%% an) .r Ho5le$ t0at t0e 'om5lete) )e;elo5ments <0i'0 0e
s0o<e) t0em <ere #.= )e;elo5ments* an) t0at t0e un)e;elo5e) sites 0e s0o<e)
t0em* in'lu)in1 +lo0a #o$al* 0a) been bou10t b$ #.= %or )e;elo5ment8 He is sai)
to 0a;e tol) .r 4nno'ent t0at .r Hone <as buil)in1 t0e 5ro5erties at +lo0a #o$al*
an) to 0a;e s0o<n 0im +lo0a #o$al <0en .r 4nno'ent <ent to (5ain8 He is sai) to
0a;e tol) .r Bar9le$ t0at t0e 'om5lete) )e;elo5ments <0i'0 0e s0o<e) 0im 0a)
been )e;elo5e) b$ .r Hone an) #.=* an) t0at t0e site at +lo0a #o$al <as o<ne)
b$ .r Hone8 +n) 0e is sai) to 0a;e tol) .r Cen$on t0at #.= <as a 5ro5er
'om5an$* t0at eit0er .r Hone or #.= o<ne) t0e site at +lo0a #o$al* an) t0at #.=
<oul) be )e;elo5in1 it8 4t is not su11este) t0at 0e sai) an$t0in1 alon1 t0ese lines to
.r #oberts8
21-8 (a;e %or one matter* 4 0a;e no )oubt t0at .r Cor)ner sai) t0ese t0in1s to .r
4nno'ent* .r Bar9le$ an) .r Cen$on8 .r Cor)ner )oes not reall$ )is5ute <0at t0e$
attribute) to 0im* an) <0at t0e$ sa$ 0e sai) is <0at 0e sa$s 0e belie;e) to be t0e 'ase8
4 am sure t0at 0e belie;e) t0at #.= <oul) be )e;elo5in1 +lo0a #o$al* an) alt0ou10
0e sai) )i%%erent t0in1s to )i%%erent 5eo5le about <0et0er it <as .r Hone or #.=
<0o o'ned t0e site* t0e %a't is t0at 0e sai) t0e t<o t0in1s inter'0an1eabl$ be'ause 0e
belie;e) t0at t0e t<o <ere s$non$mous8 He 'oul) t0ere%ore 0a;e sai) eit0er o% t0e
t<o t0in1s <0i'0 .r Cen$on sa$s 0e sai) about <0o o<ne) t0e site at +lo0a #o$al*
an) it is not 5ossible to sa$ no< <0i'0 0e sai)8 Ho<e;er* 4 )oubt <0et0er .r
Cor)ner tol) .r Cen$on t0at #.= <as a 5ro5er 'om5an$8 Wor)s o% t0at 9in) <ere
attribute) to .r Cor)ner b$ .r Cen$on %or t0e %irst time in 0is %ourt0 <itness
statement* an) in an$ e;ent t0at <as not alle1e) e;en in t0e latest ;ersion o% t0e
6arti'ulars o% Claim8 W0at .r Cor)ner a'tuall$ tol) .r Cen$on G an) t0is 'ame out
in 0is oral e;i)en'e G <as t0at #.= 0a) been in business %or 25 $ears* <0i'0 <as
tantamount to sa$in1 t0at it <as an establis0e) 'om5an$* but t0at <as not alle1e) in
t0e latest ;ersion o% t0e 6arti'ulars o% Claim eit0er8
21"8 W0et0er .r Cor)ner sai) t0e t0in1s to (ir =eo%% an) .r Ho5le$ <0i'0 t0e$ attribute
to 0im )e5en)s in 5art on <0et0er it <as .r Cor)ner <0o s0o<e) t0em aroun) t0e
'om5lete) )e;elo5ments an) t0e un)e;elo5e) sites8 .r Cor)ner )oes not t0in9 0e
)i)* be'ause 0e <oul) 0a;e remembere) ta9in1 (ir =eo%% aroun) t0em i% t0at is <0at
0a55ene)* an) 0e 'laims to 0a;e no re'olle'tion o% 0a;in1 )one t0at8 But 4 t0in9 it
li9el$ t0at 0e )i)* (ir =eo%% an) .r Ho5le$ bot0 0a;in1 a 'lear re'olle'tion t0at 0e
)i)* an) 4 t0in9 t0at 0e tol) t0em <0at t0e$ sa$ 0e tol) t0em8
2198 To t0e eDtent t0at .r Cor)ner )es'ribe) t0e )e;elo5ments (<0et0er 'om5lete) ones
or un)e;elo5e) sites) as #.= )e;elo5ments* it is sai) t0at .r Cor)ner ma)e t0e %irst
im5lie) re5resentation8 T0at alle1ation is base) on t0e %a'ts t0at t0e <or) H=rou5I in
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
#.=?s name su11este) t0at t0ere <as an asso'iation o% 'om5anies <0i'0 'oul) be
)es'ribe) as a 1rou5 o% 'om5anies* t0at an asso'iation o% 'om5anies <0i'0 'alle)
itsel% a 1rou5 o% 'om5anies <oul) be re1ar)e) G b$ a la<$er at least G as substantial*
an) t0at t0e <or) H#o$alI in #.=?s name 1a;e t0e im5ression t0at it <as re5utable8
4 )o not belie;e t0at t0e mere %a't t0at .r Cor)ner )es'ribe) t0e )e;elo5ments as
#.= )e;elo5ments im5lie) an$ o% t0ose t0in1s8 4t <as not .r Cor)ner?s )es'ri5tion
o% t0e )e;elo5ments as #.= )e;elo5ments <0i'0 im5lie) t0ose t0in1s* but rat0er
#.=?s name* an) t0at 0a) not been somet0in1 %or <0i'0 .r Cor)ner <as
res5onsible8 4n an$ e;ent* 4 )o not t0in9 %or one moment t0at it o''urre) to .r
Cor)ner* or to an$ o% t0e 'laimants %or t0at matter* t0at 0e mi10t 0a;e been sa$in1
somet0in1 about t0e stru'ture* si@e or re5utation o% #.= b$ sim5l$ sa$in1 t0at #.=
<as t0e )e;elo5er o% t0e sites8 4t is be'ause 4 )o not t0in9 t0at <0at .r Cor)ner sai)
im5lie) t0at #.= <as eit0er substantial or re5utable t0at 4 )o not nee) to a))ress t0e
ar1ument a);an'e) b$ .r &e%%eris base) on se'tion 2 o% t0e (tatute o% 3rau)s
(+men)ment) +'t 1"2" ('ommonl$ 9no<n as or) Tenter)en?s +'t) t0at su'0 a
re5resentation 'annot %oun) an a'tion unless it is ma)e in <ritin18
2208 B$ tellin1 (ir =eo%% an) .r Ho5le$ t0at #.= 0a) bou10t t0e site at +lo0a #o$al %or
)e;elo5ment* it is sai) t0at .r Cor)ner ma)e t0e se'on) im5lie) re5resentation8 F%
'ourse* t0e a5artments 0a) not been built b$ t0e time t0at .r Cor)ner s5o9e o% #.=
0a;in1 bou10t t0e site %or )e;elo5ment* an) t0e se'on) im5lie) re5resentation s0oul)
t0ere%ore be treate) as bein1 a re5resentation t0at #.= 0a) title to t0e site at +lo0a
#o$al an) <as able to sell su'0 a5artments as <ere to be built t0ere8 .r Cor)ner <as
ob;iousl$ sa$in1 mu'0 more t0an t0at #.= <as :ust marketing t0e a5artments to be
built t0ere8 4 0a;e no )oubt t0at b$ sa$in1 t0at #.= 0a) bought t0e site* .r Cor)ner
<as sa$in1 t0at #.= 0a) title to t0e site8 +n) b$ sa$in1 t0at #.= 0a) bou10t t0e
site for deelopment. 0e <as sa$in1 t0at <0en #.= bou10t t0e site its intention <as
to )e;elo5 t0e site* an) t0at it <as able to sell t0e a5artments <0i'0 <ere to be built
t0ere8 T0at <as not a statement as to a %uture state o% a%%airs8 4t <as a statement
about #.=?s abilit$ to sell t0e a5artments at t0e time t0e statement <as ma)e8 4
t0in9 t0at (ir =eo%%* .r Ho5le$ an) .r Cor)ner all realise) t0at t0at <as t0e e%%e't o%
<0at .r Cor)ner <as sa$in1* an) 4 t0ere%ore 'on'lu)e t0at .r Cor)ner ma)e t0e
se'on) im5lie) re5resentation to (ir =eo%% an) .r Ho5le$8
2218 4t is not su11este) t0at .r Cor)ner sai) an$t0in1 s5e'i%i' to .r 4nno'ent about <0o
0a) bou10t or o<ne) t0e site at +lo0a #o$al8 But .r Cor)ner )i) tell .r 4nno'ent
t0at .r Hone <as buil)in1 t0e 5ro5erties at +lo0a #o$al* an) in t0e 'onteDt in <0i'0
.r 4nno'ent sa$s t0at .r Cor)ner tol) 0im t0at* it meant t0at .r Hone <as
)e;elo5in1 t0e site* but ma9in1 10 o% t0e a5artments to be built t0ere a;ailable at a
)is'ounte) 5ri'e8 B$ sa$in1 t0at* 0e <as sa$in1 t0at Mr Hone 0a) title to t0e site an)
<as able to sell t0e a5artments to be built t0ere8 Ho<e;er* t0e se'on) im5lie)
re5resentation 5lea)e) in t0e 6arti'ulars o% Claim <as t0at #.= G not #.= or some
other entit( controlled b( Mr Hone G 0a) title to t0e site at +lo0a #o$al an) <as able
to sell t0e a5artments t0ere8 (o t0e Auestion is <0et0er <0at .r Cor)ner <as in
e%%e't sa$in1 to .r 4nno'ent amounte) to a re5resentation t0at RMG 0a) title to t0e
site an) <as able to sell t0e a5artments to be built t0ere8 4 )o not t0in9 so8 .r
Cor)ner )i) not0in1 to su11est to Mr Innocent t0at #.=?s role <as an$t0in1 ot0er
t0an mar9etin1 t0e site8 T0e si1na1e at #.=?s o%%i'es to <0i'0 .r Cor)ner too9 .r
4nno'ent* an) t0e use o% #.=?s stan)ar) 5ro5ert$ reser;ation s0eet* <as entirel$
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
'onsistent <it0 t0at8 +n) it <as not as i% .r Cor)ner as9e) .r 4nno'ent to ma9e 0is
'0eAue 5a$able to #.=8 He <as as9e) to ma9e it 5a$able to =ros;enor8
2228 +s %or .r Bar9le$* it is not su11este) t0at .r Cor)ner sai) to .r Bar9le$ an$t0in1
s5e'i%i' about <0o <oul) be )e;elo5in1 t0e site at +lo0a #o$al* alt0ou10 .r Cor)ner
)i) sa$ to .r Bar9le$ t0at it <as .r Hone <0o o<ne) t0e site8 But 0e s0o<e) .r
Bar9le$ t0e site at +lo0a #o$al be'ause t0at <as <0ere t0e a5artments <0i'0 0e <as
tr$in1 to interest .r Bar9le$ in bu$in1 <ere* an) t0at 0as to be seen in t0e 'onteDt o%
.r Cor)ner (a) 0a;in1 5re;iousl$ tol) .r Bar9le$ o% .r Hone?s interest in #.= an)
o% 0is <is0 to sell a number o% a5artments t0ere* an) (b) s0o<in1 .r Bar9le$ some
)e;elo5ments <0i'0 0e sai) <ere bein1 )e;elo5e) b$ .r Hone an) #.=8 B$
s0o<in1 .r Bar9le$ ot0er sites <0i'0 .r Cor)ner sai) <ere bein1 )e;elo5e) b$ .r
Hone an) #.=* 0e <as in e%%e't tellin1 .r Bar9le$ t0at .r Hone an) #.= <oul)
be )e;elo5in1 +lo0a #o$al8 +n) b$ re%errin1 to .r Hone?s interest in #.= <0en 0e
0a) %irst s5o9en to .r Bar9le$ about some a5artments at +lo0a #o$al 1oin1 '0ea5l$*
.r Cor)ner <as in e%%e't sa$in1 t0at t0e 'or5orate entit$ t0rou10 <0i'0 .r Hone
<oul) be )e;elo5in1 t0e site an) sellin1 t0e a5artments t0ere <oul) be #.=8 T0at
is es5e'iall$ so in t0e li10t o% (a) 0is 'omment to .r Bar9le$ t0at .s Cam5aRa 0a)
a'te) %or 0im on 5ro5erties 0e 0a) bou10t %rom #.=* an) (b) 0is reAuest to .r
Bar9le$ to ma9e 0is '0eAue 5a$able to #.=8 4 t0in9 t0at .r Bar9le$ an) .r
Cor)ner bot0 realise) t0at t0at <as t0e e%%e't o% <0at .r Cor)ner <as sa$in1* an) 4
t0ere%ore 'on'lu)e t0at .r Cor)ner ma)e t0e se'on) im5lie) re5resentation to .r
Bar9le$8
2278 4t is sai) on be0al% o% t0e 'laimants t0at .r Cor)ner eD5ressl$ ma)e t0e se'on)
im5lie) re5resentation to .r Cen$on8 He )i) not8 4t is true t0at in 0is <itness
statements 0e tal9e) o% .r Cor)ner 0a;in1 tol) 0im t0at #.= o<ne) t0e site as <ell
as )e;elo5in1 it* but t0e 'ross/eDamination o% 0im s0o<e) t0at <0en it 'ame to <0at
.r Cor)ner 0a) t0en sai) about <0o o<ne) t0e site* 0e <as unsure <0et0er .r
Cor)ner 0a) re%erre) to .r Hone or #.=8 +s 4 0a;e sai)* it is not 5ossible %or me to
sa$ <0i'0 .r Cor)ner sai)* but sin'e 4 %in) t0at .r Cor)ner tol) .r Cen$on t0at
#.= <oul) be )e;elo5in1 t0e site* an) sin'e .r Cor)ner tol) .r Cen$on to ma9e
0is '0eAue 5a$able to #.=* 0e <as in e%%e't sa$in1 t0at #.= <as able to sell t0e
units <0i'0 <ere to be built on it* e;en i% t0e site on <0i'0 t0e units <ere to be built
<as o<ne) b$ .r Hone8 +1ain* 4 t0in9 t0at .r Cen$on an) .r Cor)ner bot0
realise) t0at t0is <as t0e e%%e't o% <0at .r Cor)ner <as sa$in1* an) 4 t0ere%ore
'on'lu)e t0at .r Cor)ner ma)e t0e se'on) 5art o% t0e se'on) im5lie) re5resentation
to .r Cen$on8
22>8 T0ere is no )oubt t0at t0e se'on) im5lie) re5resentation <as %alse8 #.= )i) not
0a;e title to t0e site8 +@ul )i)8 4ts title to t0e site %ollo<in1 t0e )ee) o% sale o% 2"
&une 1999 0a) been re1istere) an) note) in t0e lan) re1ister8 +n) it 0a) title to t0e
site e;en a%ter 1> &anuar$ 200>* i8e8 at t0e time <0en t0e re5resentation <as ma)e to
.r Cen$on* be'ause t0e a1reement bet<een +@ul an) ,u:a %or t0e sale o% t0e site
<as not en%or'eable until s0ortl$ be%ore 21 &une 200>8 Nor 'oul) it be sai) t0at
#.= 0a) title to t0e site be'ause o% .r Hone?s interests in bot0 +@ul an) #.=8
T0ere is no direct e;i)en'e t0at 0e 0a) an$ interest in ,o;ereen* <0i'0 t0e 2007
bro'0ure sai) 0a) a 50K interest in +@ul8 +)mitte)l$* t0e 4ris0 'ontra't reAuire) 0im
to lo)1e t0e )ee)s o% ,o;ereen <it0 Estella* but t0at 'oul) sim5l$ mean t0at 0e 0a)
t0e s0are0ol)ers? aut0orit$ to )o t0at8 Nor is t0ere an$ direct e;i)en'e t0at 0e 0a)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
an$ interest in Wil'0ester* <0i'0 t0e 2007 bro'0ure sai) 0a) a 50K interest in +@ul8
T0e %a't t0at 0e o<ne) or 'ontrolle) Wil'0ester is* so %ar as 4 'an tell* no more t0an a
matter o% assertion8 .oreo;er* t0e %a't t0at #.= <as to )e;elo5 t0e site )i) not
ne'essaril$ mean t0at it <as able to sell t0e a5artments to be built t0ere8
2258 ,i) .r Cor)ner 9no< t0at #.= )i) not 0a;e title to t0e siteP 4 be1in <it0 t<o o%
t0e )o'uments <0i'0 .r Cor)ner a''e5ts t0at 0e 0a) (in t0e 'ase o% one* somet0in1
;er$ mu'0 li9e it) <0i'0 re%erre) to +@ul: t0e 2007 bro'0ure an) t0e buil)in1 li'en'e8
T0e buil)in1 li'en'e is in (5anis0* but (a) it <as )is'lose) b$ .r Cor)ner* an) (b) at
t0e bottom o% it someone (t0e 'laimants sa$ it <as .r Cor)ner) 0as <ritten t0at it is
t0e buil)in1 li'en'e %or +lo0a #o$al8 +n$one loo9in1 at it 9no<in1 t0at it <as t0e
buil)in1 li'en'e %or +lo0a #o$al <oul) realise t0at t0e li'en'e <as bein1 issue) to
+@ul be'ause (a) t0e li'en'e (<0i'0 'onsists o% onl$ one 5a1e) is a))resse) to +@ul*
an) (b) in t0e mi))le o% t0e li'en'e +@ul?s name is 5rominentl$ )is5la$e) in bol)
'a5itals8 Ho<e;er* 4 )o not belie;e t0at .r Cor)ner <as as9e) about t0is )o'ument*
an) it is 5ossible* t0ere%ore* t0at 0e t0ou10t t0at +@ul <as issue) <it0 a buil)in1
li'en'e be'ause it <as t0e )e;elo5er o% t0e lan)* rat0er t0an t0e o<ner o% it8
2228 (e'on)l$* t0ere is t0e 2007 bro'0ure8 T0at <as )is'lose) b$ one o% t0e 'laimants*
an) t0eir soli'itors are not able to sa$ <0i'0 one it <as8 But t0e stron1 5robabilit$ is
t0at <0oe;er )is'lose) it <as 1i;en it b$ .r Cor)ner* an) .r Cor)ner a''e5ts t0at a
bro'0ure ;er$ mu'0 li9e t0e 2007 bro'0ure <as one <0i'0 0e <as usin1 t0en8 4 0a;e
re%erre) at [1>1] abo;e to .r Cor)ner?s e;i)en'e about t0e re%eren'es in t0at bro'0ure
to +@ul* an) 4 am in'line) to belie;e 0im8 He is sim5l$ not t0e sort o% man to rea)
t0e %ine 5rint* an) 4 )o not t0in9 t0at 0e kne' t0at #.= )i) not 0a;e title to t0e site8
22-8 Ha;in1 sai) t0at* 4 am sure t0at .r Cor)ner 9ne< t0at somet0in1 %is0$ <as 1oin1 on8
T0e a5artments <ere bein1 sol) at a 0ea;il$ )is'ounte) 5ri'e8 T0e 5ri'e <as %urt0er
re)u'e) b$ a ;er$ si@eable 'ommission <0i'0 .r Cor)ner 1ot8 4% .r Hone <as
)oin1 it to raise mone$* <0$ not tr$ to raise it b$ more 'on;entional meansP .r
Cor)ner <oul) 0a;e realise) t0at somet0in1 <as in 5la$ 0ere8 He <oul) 0a;e as9e)
0imsel% <0at t0at <as8 + little t0ou10t <oul) 0a;e tol) 0im t0at it 'oul) onl$ 0a;e
0a) somet0in1 to )o <it0 <0et0er #.= 0a) title to t0e site at +lo0a #o$al an) <as
able to sell su'0 a5artments as <ere to be built t0ere8
22"8 T0ree t0in1s 5oint to t0at8 3irst* .r Cor)ner 9ne< t0at <0en .s Cam5aRa )re< u5
t0e 'ontra'ts o% sale %or t0e a5artments to <0i'0 t0e s5e'ial )eal relate)* Wil'0ester
<as name) as t0e 5romoter o% t0e lan)* sa;e %or t<o instan'es <0en it <as name) as
t0e 5romoter o% t0e lan) <it0 =ros;enor8 T0at <oul) 0a;e tol) 0im G at an$ rate
%rom t0e time 0e %irst sa< one o% t0ose 'ontra'ts G t0at #.= <as not sellin1 t0e lan)8
(e'on)l$* t0e onl$ units e;er sol) at +lo0a #o$al <ere t0ose 'o;ere) b$ t0e s5e'ial
)eal8 Certainl$ .r Cor)ner )i) not sell an$ ot0er units at +lo0a #o$al 0imsel%* an)
.6?s sales an) 'ommission re5ort )i) not re%er to an$ ot0er sales at +lo0a #o$al8
T0ir)l$* .r Cor)ner <as tr$in1 G so 4 %in) G to )is'oura1e t0e 'laimants %rom usin1
la<$ers t0emsel;es8 He 'oul) onl$ 0a;e )one t0at be'ause 0e %eare) t0at t0e sales
<oul) not 1o t0rou10* an) t0e ob;ious reason %or t0at <oul) 0a;e been be'ause 0e
sus5e'te) t0at t0ere <as somet0in1 )o)1$ about title8 4 )o not t0in9 t0at .r Cor)ner
9ne< <0at t0at <as* an) 4 t0ere%ore 'annot sa$ t0at 0e 9ne< t0at #.= )i) not 0a;e
title to t0e site or t0at t0e a5artments 'oul) not be sol)8 4n)ee)* t0at eD5lains <0$ 0e
in;este) in +lo0a #o$al 0imsel%8 But 0e 0a) 1oo) reasons %or t0in9in1 t0at #.=
mi10t not 0a;e title to t0e site* an) 0e <ent a0ea) <it0 0is in;estments be'ause t0e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
bar1ain 0e <as 1ettin1 <as a terri%i' one an) be'ause 0e 0o5e) t0at t0in1s <oul) turn
out alri10t in t0e en)8
2298 .r 4nno'ent an) .r Bar9le$ 1a;e e;i)en'e about <0at .r Cor)ner sai) about t0e
5ro5ose) )e;elo5ment o% t0e site at +lo0a #o$al8 .r 4nno'ent sa$s t0at .r Cor)ner
tol) 0im t0at all o% t0e units <oul) 0a;e a sea ;ie<8 +n) .r Bar9le$ sa$s t0at 0e an)
.r Cor)ner )is'usse) t0e Auestion o% 5lannin1 5ermission <0en 0e su11este) to .r
Cor)ner t0at t0e )e;elo5ment <oul) blo'9 t0e ;ie< o% anot0er one8 4t is sai) t0at b$
)is'ussin1 t0e 5ro5ose) )e;elo5ment o% t0e site at +lo0a #o$al* .r Cor)ner ma)e t0e
%i%t0 im5lie) re5resentation8 T0ere are %our elements o% t0e %i%t0 im5lie)
re5resentation: %irst* t0at it <as a 1oo) )ealU se'on)l$* t0at some entit$ 'ontrolle) b$
.r Hone <as able to 5ass 'lean title to t0e a5artmentsU t0ir)l$* t0at su'0 an entit$
inten)e) to 'arr$ out t0e )e;elo5ment (H<illin1I)U an) %ourt0l$* t0at t0ere <ere 5ro5er
arran1ements in 5la'e (i8e8 su%%i'ient %un)in1) to enable t0e a5artments to be built an)
t0e )e;elo5ment to be 'om5lete) (Hrea)$ an) ableI)8
2708 4 )o not t0in9 t0at .r Cor)ner <as sa$in1 in e%%e't all t0ese t0in1s :ust b$ )is'ussin1
t0e )e;elo5ment in t0is <a$8 .r Cor)ner <as )oin1 no more t0an s5ellin1 out t<o
%eatures o% t0e )e;elo5ment* namel$ t0at it <oul) 0a;e a sea ;ie< an) t0at it 0a)
5lannin1 5ermission8 4 )o not see <0$* b$ statin1 :ust t0at* .r Cor)ner 'oul) be sai)
to 0a;e been sa$in1 t0at t0e )eal <as a 1oo) one* or t0at an entit$ 'ontrolle) b$ .r
Hone <as able to 5ass 'lean title to t0e a5artments* or t0at t0ere <ere 5ro5er
arran1ements in 5la'e to enable t0e a5artments to be built an) t0e )e;elo5ment to be
'om5lete)8 Ft0er t0in1s <0i'0 .r Cor)ner sai) an) )i) ma$ 0a;e 'arrie)
im5li'ations o% t0at 9in)* but not t0ese 'omments about 5arti'ular %eatures o% t0e
)e;elo5ment8 Ha;in1 sai) t0at* t0ou10* b$ tal9in1 about t0ese %eatures o% t0e
)e;elo5ment* 4 t0in9 t0at .r Cor)ner <as in e%%e't sa$in1 t0at an entit$ 'ontrolle) b$
.r Hone <as inten)in1 to 'arr$ out t0e )e;elo5ment8
2718 .r Cor)ner?s re5resentation t0at an entit$ 'ontrolle) b$ .r Hone <as inten)in1 to
'arr$ out t0e )e;elo5ment <as 'ertainl$ not true b$ t0e time .r Cen$on 'ame onto
t0e s'ene* be'ause b$ t0en +@ul 0a) 5ri;atel$ a1ree) to trans%er t0e site to ,u:a8 But
<as it true <0en .r 4nno'ent <ent to (5ain* <0i'0 <oul)* 4 t0in9* 0a;e been a %e<
<ee9s be%ore 1- &une 2007* <0i'0 is t0e )ate on <0i'0 0e 5ai) t0e 5ur'0ase 5ri'e
a''or)in1 to t0e 5ro5ert$ reser;ation s0eetP +n) i% so* <as it still true <0en .r
Bar9le$ <ent to (5ain earl$ in No;ember 2007P 4t all )e5en)s on <0et0er .r Hone
<as e;er inten)in1 to )e;elo5 t0e site* an) i% so* <0en )i) t0e time 'ome <0en 0e
)e'i)e) not to8 T0at is not somet0in1 <0i'0 t0e e;i)en'e enables me to )e'i)e one
<a$ or t0e ot0er* an) 4 t0ere%ore 'annot sa$ t0at it is more li9el$ t0an not t0at .r
Cor)ner?s re5resentation t0at an entit$ 'ontrolle) b$ .r Hone <as inten)in1 to 'arr$
out t0e )e;elo5ment <as untrue <0en 0e ma)e t0at re5resentation to .r 4nno'ent an)
.r Bar9le$8 But in an$ e;ent* e;en i% #.= (or some ot0er entit$ 'ontrolle) b$ .r
Hone) <as not inten)in1 to 'arr$ out t0e )e;elo5ment <0en .r Cor)ner im5lie) t0at
it <as* 4 )o not t0in9 t0at 0e realise) t0at it <as untrue until ;er$ mu'0 later on8
2728 Chairman of RMG8 T0ree o% t0e 'laimants sa$ t0at .r Cor)ner tol) t0em t0at 0e <as
t0e '0airman o% #.=8 T0e$ are (ir =eo%%* .r Ho5le$ an) .r Cen$on8 .r
Cor)ner?s 'ase is t0at 0e onl$ 'alle) 0imsel% <0at 0is :ob title <as at t0e time* but as 4
sai) at [1-5] abo;e* bot0 0is business 'ar) an) #.=?s 2005 bro'0ure )es'ribe) 0im
as t0e '0airman o% #.=* an) 4 am sure t0at t0at is 0o< 0e )es'ribe) 0imsel% to (ir
=eo%%* .r Ho5le$ an) .r Cen$on* albeit 5ossibl$ <it0 .r Hone?s 5ermission8 But
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
alt0ou10 .r Hone ma$ 0a;e allo<e) .r Cor)ner to 'all 0imsel% '0airman o% #.=*
0e <as not its '0airman8 He merel$ 0ea)e) #.=?s sales team in t0e JC8 His
statement t0at 0e <as '0airman <as %alse* an) 9no<n b$ .r Cor)ner to be %alse*
be'ause 0e 9ne< t0at 0is real role <it0in #.= <as a lon1 <a$ o%% bein1 its '0airman8
2778 RMGs offices8 Bot0 .r 4nno'ent an) .r Bar9le$ sa$ t0at .r Cor)ner too9 t0em to
at least one o% #.=?s t<o o%%i'es at 6uerto Banus8 .r Cor)ner )oes not )en$ t0at8
4t is sai) t0at b$ )oin1 t0at .r Cor)ner ma)e t0e %irst im5lie) re5resentation8 4 )o
not a1ree8 T0e mere %a't t0at .r Cor)ner <as asso'iate) <it0 #.= so t0at 0e too9
5otential bu$ers to #.=?s o%%i'es )i) not im5l$ an$t0in1 about #.=?s stru'ture* si@e
or re5utation8 4t <as #.=?s name* an) t0e %a't t0at #.=?s o%%i'es bore its si1na1e*
<0i'0 im5lie) t0ose t0in1s* an) t0at <as not somet0in1 %or <0i'0 .r Cor)ner <as
res5onsible8 4n an$ e;ent* 4 )o not t0in9 %or one moment t0at it o''urre) to .r
Cor)ner G or to .r 4nno'ent or .r Bar9le$ %or t0at matter G t0at .r Cor)ner mi10t
0a;e been sa$in1 somet0in1 about t0e stru'ture* si@e or re5utation o% #.= b$ sim5l$
ta9in1 t0em to #.=?s o%%i'es8
27>8 7er( close to Mr Hone8 .r 4nno'ent sa$s t0at .r Cor)ner tol) 0im t0at 0e <as ;er$
'lose to .r Hone8 4% .r Cor)ner 0a) tol) .r 4nno'ent t0at* it <oul) 0a;e been
untrue* be'ause .r Cor)ner a'9no<le)1e) t0at alt0ou10 t0e$ <ere 'lose* t0e$ <ere
not ;er$ 'lose8 T0is sort o% eDa11eration <as eDa'tl$ t0e sort o% t0in1 .r Cor)ner
<oul) sa$* not :ust so t0at 0e 'oul) boast o% 0is %rien)s0i5 <it0 a man <0o <as as
su''ess%ul as .r Hone a55eare) to be* but also to 1et .r 4nno'ent to trust 0is
:u)1ment about .r Hone8 But 4 )oubt ;er$ mu'0 <0et0er .r 4nno'ent reall$
remembere) 0is 'on;ersation <it0 .r Cor)ner t0at <ell to be able to sa$ t0at 0e use)
t0e <or) H;er$I* an) 4 'annot sa$ t0at .r Cor)ner 5robabl$ )i)8
2758 Mr Hones partner8 T0e reason .r Cor)ner 1a;e some o% t0e 'laimants %or <0$ t0e
a5artments on o%%er at +lo0a #o$al <ere 1oin1 so '0ea5l$ <as t0at .r Hone <ante)
to raise 'as0 to bu$ out 0is 5artner8 He tol) .r 4nno'ent t0at .r Hone nee)e) t0e
'as0 to 5a$ a 5artner o%%8 He is sai) to 0a;e tol) .r Bar9le$ t0at .r Hone o<ne)
50K o% #.= an) <ante) to raise B2m to bu$ out t0e o<ner o% t0e ot0er 50K8 +n)
0e is sai) to 0a;e tol) .r Cen$on t0at .r Hone <ante) to raise mone$ to bu$ out 0is
5artner in #.=8 .r Cor)ner?s 'ase is t0at 0e )i) not t0in9 t0at .r Hone 0a) a
5artner in #.=8 He t0ou10t t0at .r Hone o<ne) #.= 0imsel%* an) 0e t0ere%ore
)enies t0at 0e tol) .r Bar9le$ or .r Cen$on an$t0in1 about t0e 5artner .r Hone
<ante) to bu$ out bein1 .r Hone?s 5artner in #.=8 W0at 0e tol) .r Bar9le$* 0e
sa$s* <as t0at it <as 0is 5artner in a lan) )eal <0o .r Hone <ante) to bu$ out*
t0ou10 0e <as to sa$ t0at later on it o''urre) to 0im t0at t0e lan) )eal ma$ 0a;e
relate) to +lo0a #o$al8
2728 T0e stron1 5robabilit$ is t0at .r Cor)ner )i) sa$ <or)s to t0e e%%e't t0at .r Hone?s
5artner <0o 0e <ante) to bu$ out <as 0is 5artner in #.=8 4t is* 4 t0in9* ;er$
unli9el$ t0at .r Bar9le$ an) .r Cen$on <oul) 0a;e ma)e t0e same mista9e* t0ou10
<0et0er .r Hone a'tuall$ 0a) a 5artner in #.= is not somet0in1 4 'an ma9e
)e%initi;e %in)in1s about8 #.=?s 'om5an$ re'or)s s0o< t0at .r Hone <as t0e sole
)ire'tor o% #.=* an) 0e )es'ribe) 0imsel% to #.=?s ban9ers as its sole
a)ministrator* but 'ru'iall$ t0ere is no e;i)en'e about #.= s0are0ol)ers8 4n t0e
'ir'umstan'es* 4 'annot sa$ t0at .r Cor)ner?s re5resentation to .r Bar9le$ an) .r
Cen$on t0at .r Hone 0a) a 5artner in #.= <as %alse8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
27-8 Ho<e;er* e;en i% .r Hone 0a) a 5artner in #.=* 4 )o not t0in9 t0at .r Hone <as
raisin1 t0e 'as0 to bu$ t0at 5artner out* assumin1 in .r Cor)ner?s %a;our t0at .r
Hone <as raisin1 t0e 'as0 to bu$ a 5artner out8 4% 0e <as tr$in1 to bu$ a 5artner out
at all* it <as ,o;ereen* Wil'0ester?s H5artnerI in t0e o<ners0i5 o% +@ul8 If t0e 2007
bro'0ure <as a''urate in sa$in1 t0at Wil'0ester an) ,o;ereen ea'0 0a) a 50K
s0are0ol)in1 in +@ul* an) if Wil'0ester <as o<ne) an) 'ontrolle) b$ .r Hone* it
loo9s as i% .r Hone <as tr$in1 to raise mone$ to bu$ out 0is (i8e8 Wil'0ester?s)
H5artnerI in +@ul (i8e8 ,o;ereen)8 4t %ollo<s t0at .r Cor)ner?s re5resentation to .r
Bar9le$ an) .r Cen$on t0at .r Hone nee)e) to raise t0e 'as0 to bu$ out 0is 5artner
in RMG <as %alse8 4% 0e <as tr$in1 to raise 'as0 to bu$ out a 5artner* it <as 0is
5artner in t0e o<ners0i5 o% +@ul* i8e8 ,o;ereen8
27"8 Ha;in1 sai) t0at* 4 )o not t0in9 t0at .r Hone <as tr$in1 to raise t0e 'as0 to bu$ out
,o;ereen?s interest in +@ul8 4% t0e 2007 bro'0ure is an$t0in1 to 1o b$* ,o;ereen?s
s0are0ol)in1 in +@ul <as bein1 o%%ere) to outsi)ers8 T0at <as bein1 )one to raise
mone$ %or t0e 'onstru'tion o% +lo0a #o$al8 4% %inan'e %or t0is 'onstru'tion 'oul) not
be raise) in t0at <a$* t0e %un)s 0a) to be raise) in some ot0er <a$8 Ho<e;er* t0e
L2m or so <0i'0 .r Hone <as 1oin1 to raise %rom t0e sale o% t0e 10 a5artments a%ter
'ommission 0a) been 5ai) <as 0ar)l$ 1oin1 to be enou10 %or t0at 5ur5ose8
Fb;iousl$* %urt0er %un)in1 <as 1oin1 to be ne'essar$8 4t %ollo<s* t0ere%ore* t0at .r
Hone <as tr$in1 to raise t0e mone$ to %un) t0e initial sta1es o% t0e 'onstru'tion o%
+lo0a #o$al* or 0e <as tr$in1 to raise it %or some uni)enti%ie) 5ur5ose o% 0is o<n8
Fne t0in1 <0i'0 'an be sai) <it0 some 'on%i)en'e is t0at 0e <as not tr$in1 to raise it
to bu$ out 0is 5artner* let alone to bu$ out 0is 5artner in #.=8 4t %ollo<s t0at .r
Cor)ner?s re5resentation to .r 4nno'ent* .r Bar9le$ an) .r Cen$on t0at .r Hone
nee)e) to raise t0e mone$ to bu$ out a 5artner <as %alse8
2798 But )i) .r Cor)ner 9no< t0at t0is <as %alseP 4 s0all return to .r Cen$on later but 4
)o not t0in9 t0at .r Cor)ner )i) G at an$ rate not <0en 0e ma)e t0e re5resentation to
.r 4nno'ent an) .r Bar9le$8 4 )o not t0in9 %or one moment t0at .r Hone too9 .r
Cor)ner into 0is 'on%i)en'e* an) alt0ou10 0e must 0a;e 9no<n t0at t0ere <as
somet0in1 %unn$ 1oin1 on about +lo0a #o$al* t0ere is not0in1 <0i'0 su11ests t0at .r
Cor)ner mi10t not 0a;e ta9en <0at .r Hone tol) 0im at %a'e ;alue8 T0ere is no
reason to )oubt .r Cor)ner?s e;i)en'e t0at .r Hone )i) in)ee) tell .r Cor)ner t0at
0e nee)e) to raise t0e mone$ to bu$ out 0is 5artner8 +)mitte)l$* 4 also %in) t0at 0e
tol) .r Cor)ner t0at t0at 5artner <as 0is 5artner in RMG8 (in'e .r Cor)ner t0ou10t
t0at .r Hone o<ne) an) <oul) be )e;elo5in1 t0e site at +lo0a #o$al t0rou10 #.=*
t0at s0oul) 0a;e ma)e .r Cor)ner <on)er 0o< .r Hone 'oul) use t0e 5ro'ee)s o%
sale o% #.=?s assets to bu$ out 0is 5artner in #.=8 4n)ee)* t0e same 'oul) be sai)
o% t0e 'laimants* but 4 )o not belie;e t0at t0in9in1 o% t0at 9in) e;er 'ame u5 on .r
Cor)ner?s ra)ar G or on t0e 'laimants? eit0er8
2>08 T0ere is an a))itional 5oint 0ere about <0at .r Cor)ner sai) to .r Bar9le$* <0i'0
<as t0at t0e amount <0i'0 .r Hone <ante) to raise <as B2m8 .r Cor)ner )i) not
)en$ t0e e%%e't o% t0at* be'ause 0e t0ou10t t0at 0e mi10t 0a;e re%erre) to L7m8 T0at
is sai) to 0a;e been %alse in ;ie< o% t0e 'ommission .r Cor)ner <oul) be 1ettin18
4n t0e li10t o% t0at 'ommission* .r Hone <oul) onl$ be able to raise L2*17-*000*
<0i'0 <as %ar less t0at B2m8 But 4 )o not belie;e t0at <0at .r Cor)ner tol) .r
Bar9le$ <as ne'essaril$ %alse8 T0e %a't t0at .r Hone 9ne< t0at 0e 'oul) onl$ raise
:ust o;er L2m b$ t0e s5e'ial )eal )i) not ma9e .r Cor)ner?s statement t0at .r Hone
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
'anted to raise B2m %alse8 4t 'oul) sim5l$ 0a;e re%le'te) .r Hone?s re'o1nition t0at
0e <oul) not be able to raise t0e <0ole o% t0e B2m i% .r Cor)ner <as to 1et t0is le;el
o% 'ommission8 4n an$ e;ent* .r Cor)ner?s 'ommission <as t0e onl$ reason <0$ t0e
sale o% t0e 10 a5artments at L29"*000 <oul) not 0a;e resulte) in .r Hone re'ei;in1
t0e eAui;alent o% B2m8 4n t0ese 'ir'umstan'es* it 'oul) be sai) t0at <0en .r Cor)ner
sai) t0at .r Hone <ante) to raise B2m* 0e <as re%errin1 to <0at t0e sale o% t0e
a5artments <oul) raise be%ore 'ommission 0a) been 5ai)* not a%ter8 +s it is* t0ere is
no alle1ation in t0e latest ;ersion o% t0e 6arti'ulars o% Claim t0at .r Cor)ner?s
statement t0at .r Hone <ante) to raise B2m <as %alse8
2>18 .r Cor)ner?s statement to .r 4nno'ent* .r Bar9le$ an) .r Cen$on t0at .r Hone
nee)e) t0e mone$ to bu$ out 0is 5artner (<0et0er 0is 5artner in #.= or 0is 5artner in
some ot0er ;enture) is sai) to 0a;e amounte) to one as5e't o% t0e t0ir) im5lie)
re5resentation* namel$ t0at t0e mone$ <0i'0 .r 4nno'ent* .r Bar9le$ an) .r
Cen$on 5ai) %or t0eir a5artments 'oul) la<%ull$ be use) b$ .r Hone to bu$ out 0is
5artner8 T0e im5ortant <or) 0ere is Hla<%ull$I8 Was .r Cor)ner im5lie)l$
re5resentin1 t0at (5anis0 la< 5ermitte) t0e 5ur'0ase 5ri'e o% a 5ro5ert$ <0i'0 <as
bein1 bou10t o%%/5lan to be use) %or t0e )e;elo5ers? o<n 5ur5oses (ot0er t0an to %un)
t0e 'onstru'tion o% t0e 5ro5ert$) e;en be%ore t0e 5ro5ert$ 0as been builtP +1ain* it is
im5ortant to see t0e 'onteDt in <0i'0 .r Cor)ner sai) t0at .r Hone nee)e) t0e 'as0
to bu$ out 0is 5artner8 He tol) .r 4nno'ent t0at t0ere <oul) be a 1oo) )eal 1oin1 i%
0e 'oul) 'ome u5 <it0 t0e mone$ Aui'9l$8 He tol) .r Bar9le$ at t0e sales
'on;ention in .auritius t0at .r Hone nee)e) t0e mone$ strai10t a<a$8 +n) 0e tol)
.r Cen$on t0at 0e <oul) nee) to ma9e u5 0is min) imme)iatel$8 .r Cor)ner )i)
not )is5ute an$ o% t0at8 T0e ob;ious im5li'ation o% t0at is not merel$ t0at .r Hone
nee)e) t0e 'as0 to bu$ out 0is 5artner* but also t0at 0e <as 1oin1 to use t0e 'as0 %or
t0at 5ur5ose Aui'9l$* i8e8 be%ore t0eir a5artments 0a) been built8 (o t0e Auestion is
<0et0er t0at 'arrie) <it0 it t0e im5li'ation t0at (5anis0 la< 5ermitte) t0atP 4 t0in9 it
)i)* but t0e im5ortant t0in1 is t0at neit0er .r 4nno'ent nor .r Bar9le$ nor .r
Cen$on sai) t0at t0e$ t0ou10t t0at <0at .r Cor)ner <as sa$in1 meant t0at* an) 4 )o
not belie;e t0at .r Cor)ner <oul) 0a;e realise) t0at <0at 0e <as sa$in1 meant t0at
eit0er8
2>28 4 return to <0et0er .r Cor)ner 9ne< b$ t0e time 0e tol) .r Cen$on t0at .r Hone
nee)e) to raise t0e mone$ to bu$ out 0is 5artner t0at <0at 0e <as sa$in1 0a) be'ome
%alse b$ t0en8 T0is <as almost a $ear a%ter .r Cor)ner 0a) tol) .r 4nno'ent t0at8
.r Cor)ner <as to a''e5t in 'ross/eDamination t0at b$ t0en it <as not so mu'0 .r
Hone <0o nee)e) t0e mone$* but rat0er 0e <0o )i) be'ause o% <0at .r Hone 0a)
tol) 0im about bein1 able to use <0ate;er .r Cen$on 5ai) to<ar)s t0e 5ur'0ase o%
t0e ,erin1s8 (o <0at .r Cor)ner tol) .r Cen$on G namel$ t0at it <as Mr Hone
<0o nee)e) t0e mone$ G <as %alse be'ause it <as Mr Cordner <0o nee)e) it* an) .r
Cor)ner must 0a;e 9no<n t0at it <as %alse8
2>78 A good deal8 .r Cor)ner tol) t<o o% t0e 'laimants t0at t0e )eal <as a 1oo) one8
W0at 0e sai) to .r 4nno'ent <as t0at t0ere <oul) be a 1oo) )eal i% .r 4nno'ent 'ame
u5 <it0 t0e mone$* an) 0e sai) t0at in t0e 'onteDt o% 0im s0o<in1 .r 4nno'ent t0e
2007 bro'0ure* an) tellin1 0im t0at 0e 'oul) 1et t0e a5artment %or B212*000 )es5ite
t0e list 5ri'e in t0e bro'0ure o% L>->*"008 W0at 0e sai) to .r Cen$on <as t0at t0ere
<as a ;er$ 1oo) )eal 1oin1* an) 0e sai) t0at in t0e 'onteDt o% 0im tellin1 .r Cen$on
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0at t0e nine a5artments to <0i'0 t0e )eal relate) <ere bein1 sol) at a ;er$ si1ni%i'ant
)is'ount8 .r Cor)ner )oes not )is5ute sa$in1 t0at8
2>>8 T0e 'laimants? 'ase is t0at b$ sa$in1 t0at to .r 4nno'ent an) .r Cen$on* .r Cor)ner
<as in e%%e't sa$in1 t0at t0e minimum 5ri'e %or <0i'0 t0e ;en)or 'oul) sell t0e
a5artments an) still ma9e a 5ro%it <as not substantiall$ belo< t0e 5ri'e at <0i'0 t0e$
<ere bein1 o%%ere) to .r 4nno'ent an) .r Cen$on8 T0is <as %alse be'ause t0e
minimum 5ri'e %or <0i'0 t0e a5artments 'oul) be sol) an) still 5ro;i)e a 5ro%it %or
t0e ;en)or must 0a;e been substantiall$ belo< t0at %or t0e ;en)or to 0a;e been able
to a%%or) to 5a$ .r Cor)ner a substantial 'ommission <0i'0 <as not )is'lose) to .r
4nno'ent an) .r Cen$on8 4 'annot 1o alon1 <it0 t0is 'ontention8 4 )o not t0in9 t0at
t0e e%%e't o% <0at .r Cor)ner <as sa$in1 <as <0at t0e 'laimants sa$ it <as8 +t t0e
most* t0e e%%e't o% <0at .r Cor)ner <as sa$in1 <as t0at t0e ;en)or 'oul) still ma9e a
5ro%it e;en i% t0e 5ur'0ase 5ri'e <as substantiall$ re)u'e) to L29"*000 in t0e 'ase o%
.r 4nno'ent an) L720*000 in t0e 'ase o% .r Cen$on8 But 0e <as not im5l$in1 t0at
t0e ;en)or 'oul) not 1o si1ni%i'antl$ belo< t0ose %i1ures an) not still ma9e a 5ro%it8
2>58 .r Cor)ner?s statements to .r 4nno'ent an) .r Cen$on about 0o< 1oo) t0e )eals
<ere are also sai) to 0a;e amounte) to t0e %i%t0 im5lie) re5resentation8 T0is 0as to
be seen in t0e 'onteDt t0at t0e$ <ere bein1 as9e) to 5a$ t0e <0ole o% t0e 5ur'0ase
5ri'e u5 %ront* t0at .r 4nno'ent <as ta9en to one o% #.=?s o%%i'es in 6uerto Banus*
an) .r Cen$on <as as9e) to ma9e 0is '0eAue 5a$able to #.=8 B$ tellin1 t0em
<0at a 1oo) )eal it <as in t0ese 5arti'ular 'ir'umstan'es* 4 t0in9 t0at t0e e%%e't o%
<0at .r Cor)ner <as sa$in1 <as t0at an entit$ 'ontrolle) b$ .r Hone <as in a
5osition to 5ass 'lean title to t0em* t0at su'0 an entit$ <as inten)in1 to 'arr$ out t0e
)e;elo5ment* an) t0at t0ere <as su%%i'ient %un)in1 in 5la'e to enable t0e a5artments
to be built an) t0e )e;elo5ment to be 'om5lete)8
2>28 6art o% t0is <as %alse at t0e time .r Cor)ner <as )ealin1 <it0 .r 4nno'ent8
+lt0ou10 +@ul (<0i'0 <as an entit$ 'ontrolle) b$ .r Hone) <as in a 5osition to 5ass
'lean title to .r 4nno'ent* t0ere is not0in1 to su11est t0at eit0er +@ul or #.= at t0at
sta1e 0a) t0e ne'essar$ %un)s in 5la'e to enable t0e a5artments to be built an) t0e
)e;elo5ment to be 'om5lete)8 4 0a;e alrea)$ sai) t0at 4 'annot sa$ t0at .r Hone <as
not at t0at sta1e inten)in1 to 'arr$ out t0e )e;elo5ment8 But b$ t0e time .r Cor)ner
<as )ealin1 <it0 .r Cen$on* t0at <as %alse* be'ause +@ul 0a) a1ree) (a)mitte)l$ b$
an a1reement <0i'0 <as t0en unen%or'eable) to sell t0e lan) to ,u:a8
2>-8 Ha;in1 sai) t0at* alt0ou10 .r 4nno'ent an) .r Cen$on un)erstan)abl$ t0ou10t t0at
t0e$ <oul) be 1ettin1 title to t0eir a5artments* t0at t0eir a5artments <oul) be built
an) t0at t0e )e;elo5ment <oul) be 'om5lete)* 4 )o not belie;e t0at t0e$ a55lie) t0eir
min)s to <0et0er #.= (or an$ ot0er entit$) <as able at t0at time to 5ass 'lean title to
t0em* or t0at at t0at time su%%i'ient %un)in1 <as in 5la'e to enable t0e a5artments to be
built an) t0e )e;elo5ment to be 'om5lete)8 +n) 4 'ertainl$ )o not t0in9 t0at t0at
<oul) 0a;e o''urre) to t0em as a result o% <0at .r Cor)ner tol) t0em about 0o<
1oo) t0e )eal t0e$ <ere 1ettin1 <as* e;en in t0e 'onteDt in <0i'0 0e sai) it8 T0e
same 1oes %or .r Cor)ner8 +n) i% 0e )i) not realise t0at 0e <as in e%%e't ma9in1 t0at
re5resentation* t0e Auestion <0et0er 0e <as a<are o% its %alsit$ be'omes immaterial8
2>"8 Mr Cordners purchase of the apartments8 4t is sai) t0at .r Cor)ner tol) a number o%
t0e 'laimants t0at t0e a5artments to <0i'0 t0e s5e'ial )eal relate) <ere a5artments
<0i'0 0e 0a) bou10t8 (ome o% t0e e;i)en'e <as not Auite t0at 'lear8 (ir =eo%% sa$s
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0at .r Cor)ner tol) 0im t0at 0e 0a) bou10t 10 a5artments at +lo0a #o$al 0imsel%
%rom .r Hone at a 5re/sales laun'0* an) <as able to Hsell t0em onI at a 0ea;il$
)is'ounte) 5ri'e8 He a))e) t0at .r Cor)ner ma$ <ell not 0a;e use) t0e <or)
Hbou10tI* so t0at <as onl$ <0at (ir =eo%% un)erstoo) .r Cor)ner to mean8 .r
Ho5le$ sai) t0at .r Cor)ner 0a) tol) 0im t0at 0e 0a) Hta9enI 10 a5artments at +lo0a
#o$al* but 0e )i) not sa$ 0o< .r Cor)ner 0a) ta9en t0em G <0et0er 0e 0a) bou10t
t0em or reser;e) t0em or <0ate;er8 .r #oberts? e;i)en'e* <0i'0 is summarise) at
["9] abo;e* <as un'lear about 0o< or <0en .r Cor)ner <oul) be bu$in1 t0e
a5artments* but t0e e%%e't o% <0at 0e <as sa$in1 on ea'0 ;ersion o% <0at .r Cor)ner
0a) tol) 0im <as t0at i% .r #oberts )e'i)e) to bu$ one o% t0e a5artments* 0e <oul)
be bu$in1 it %rom .r Cor)ner8
2>98 4 )o not )oubt t0at .r Cor)ner tol) (ir =eo%% an) .r Ho5le$ <0at t0e$ sa$ 0e sai)8
But <0at (ir =eo%% t0ou10t .r Cor)ner meant is no more t0an 1uess<or9* an) .r
Ho5le$?s ;ersion o% <0at .r Cor)ner sai) is :ust as 'onsistent <it0 .r Cor)ner
0a;in1 reser;e) t0e 10 a5artments8 4 'annot sa$ t0at t0e 5robabilities are t0at .r
Cor)ner tol) t0em t0at 0e 0a) bou10t t0e a5artments 0imsel%8 Ho<e;er* .r #oberts
is in a )i%%erent 5osition8 His 5re;ious )ealin1s <it0 .r Cor)ner o;er t0e
)e;elo5ment at os 3lamin1os 0a) le) 0im to belie;e t0at on t0at o''asion .r
Cor)ner 0a) bou10t t0e a5artments t0ere 0imsel% an) t0at .r #oberts an) 0is son 0a)
t0en bou10t t0eir a5artments %rom .r Cor)ner8 4t <as onl$ be'ause .r #oberts
t0ou10t t0at .r Cor)ner 0a) 0imsel% bou10t t0e a5artments at +lo0a #o$al t0at 0e
<as able to o%%er one o% t0em to .r #oberts at a )is'ount8 +n) it <as be'ause .r
Cor)ner 0imsel% <as sellin1 t0e a5artment to 0im* an) not sellin1 it as an a1ent* t0at
.r #oberts t0ou10t t0at .r Cor)ner <oul) not be ma9in1 a 5ro%it on t0e sale8 .r
Cor)ner?s 5ro%it <oul) be 'omin1 %rom t0e ot0er a5artments 0e sol)8 T0e stron1
5robabilit$ is t0at* )es5ite 0is )enial* .r Cor)ner )i) in)ee) tell .r #oberts t0at .r
#oberts <oul) be bu$in1 t0e a5artment %rom him8 T0at <as %alse* o% 'ourse* an)
9no<n b$ .r Cor)ner to be %alse at t0e time8
2508 Mr Cordners famil(8 W0en .r Cor)ner tol) .r Ho5le$ t0at 0e 0a) Hta9enI 10
a5artments at +lo0a #o$al* 0e sai)* so .r Ho5le$ 'laims* t0at 0e 0a) ta9en t0em %or
0is %amil$ (in'lu)in1 one %or 0is mot0er an) %at0er)8 .r Cor)ner is sai) to 0a;e sai)
somet0in1 alon1 t0e same lines to (ir =eo%% an) .r Cen$on as <ell8 (ir =eo%% sa$s
t0at <0en 0e an) .r 6o<er met .r Cor)ner at (el%ri)1es 0otel* .r Cor)ner sai) t0at
t0e rest o% t0e 10 a5artments <ere sellin1 Aui'9l$* an) t0at some o% t0em 0a) been
ta9en b$ 0is %amil$ an) ot0ers8 +n) .r Cen$on sa$s t0at .r Cor)ner tol) 0im t0at
0e <as 0imsel% bu$in1 at +lo0a #o$al <it0 (an)ra an) 0is 5arents8 .r Cor)ner
'laims t0at 0e onl$ sai) t0at 0e 0a) Ho%%ere)I t0e a5artments* or some o% t0em* to
members o% 0is %amil$* but 4 t0in9 t0at 0is re'olle'tion 0ere is at %ault8 W0at <as
attribute) to 0im <as :ust t0e sort o% t0in1 <0i'0 4 t0in9 .r Cor)ner <oul) 0a;e sai)
to 1i;e 5otential bu$ers 'on%i)en'e in t0e )e;elo5ment* an) too man$ o% t0e 'laimants
sa$ t0e same t0in1 %or t0em to 0a;e 1ot it <ron18 W0at .r Cor)ner sai) <as %alse
an) 9no<n b$ 0im at t0e time to be %alse: neit0er 0is 5arents nor an$ ot0er member o%
0is %amil$ 0a) bou10t a5artments at +lo0a #o$al8
2518 The discount and the up front pa(ment8 .r Cor)ner tol) t0e 'laimants t0at t0e
a5artments <ere bein1 sol) at substantiall$ less t0an t0e list 5ri'e* 5ro;i)e) t0at t0e$
<ere 5ai) %or in %ull u5 %ront8 4 set out at [2>7] abo;e <0at 0e tol) .r 4nno'ent an)
.r Cen$on8 (ir =eo%% sai) t0at .r Cor)ner s0o<e) 0im t0e list 5ri'es %or t0e units
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
at +lo0a #o$al* an) tol) 0im t0at t0e ones 0e 0a) <ere t0e ones <it0 t0e list 5ri'e o%
L>->*"00* but <0i'0 0e 'oul) sell %or L29"*000* 5ro;i)e) t0at (ir =eo%% <as 5re5are)
to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e u5 %ront8 .r Ho5le$ sai) t0at .r Cor)ner tol)
0im t0at t0e <0ole o% t0e 5ur'0ase 5ri'e <oul) 0a;e to be 5ai) u5 %ront* but t0at 0e
an) (ir =eo%% 'oul) eD5e't a substantial return on t0eir in;estment as t0e$ <oul) be
1ettin1 t0e a5artment at a 0ea;il$ )is'ounte) 5ri'e8 .r #oberts sai) t0at .r Cor)ner
tol) 0im t0at 0e 'oul) sell 0im one a5artment at a si1ni%i'ant )is'ount o% aroun)
L100*000/L150*000* but t0at .r #oberts nee)e) to 5a$ t0e <0ole o% t0e 5ur'0ase
5ri'e u5 %ront8 +n) .r Bar9le$ sai) t0at <0en t0e$ 0a) been at t0e sales 'on;ention
in .auritius* .r Cor)ner 0a) tol) 0im t0at in;estors <ere bein1 as9e) to 5a$ t0e
<0ole o% t0e 5ur'0ase 5ri'e u5 %ront8
2528 T0e 'laimants? 'ase is t0at b$ sa$in1 to .r Ho5le$ an) .r #oberts t0at t0e 5ri'e t0e$
<oul) be 5a$in1 %or t0e a5artments 0a) been 0ea;il$ or si1ni%i'antl$ )is'ounte)* .r
Cor)ner <as in e%%e't sa$in1 <0at t0e$ 'laim <as t0e e%%e't o% <0at 0e tol) .r
4nno'ent an) .r Cen$on about t0e )eal bein1 a 1oo) one8 3or t0e reasons 1i;en at
[2>>] abo;e* 4 )o not a1ree <it0 t0at8
2578 4n a))ition* t0ou10* t0e 'laimants sa$ t0at b$ tellin1 (ir =eo%%* .r Ho5le$* .r
4nno'ent* .r #oberts* .r Bar9le$ an) .r Cen$on t0at in or)er to 1et t0e )is'ounte)
5ri'e %or t0eir a5artments t0e$ 0a) to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e u5 %ront* .r
Cor)ner <as ma9in1 t0e t0ir) im5lie) re5resentation to t0em8 4 0a;e no )oubt t0at
b$ reAuirin1 t0em to 5a$ t0e <0ole o% t0e 5ur'0ase 5ri'e u5 %ront in or)er to 1et t0e
)is'ounte) 5ri'e* .r Cor)ner <as sa$in1 t0at (5anis0 la< 5ermitte) t0e <0ole o% t0e
5ur'0ase 5ri'e to be 5ai) u5 %ront8 T0at <as not %alse8 (5anis0 la< )i) 5ermit t0e
<0ole o% t0e 5ur'0ase 5ri'e to be 5ai) u5 %ront8 But b$ as9in1 %or mone$ u5 %ront* 4
am sure t0at .r Cor)ner <as also sa$in1 t0at it <as inten)e) to 0an)le an) use t0e
mone$ in a''or)an'e <it0 t0e reAuirements o% (5anis0 la<* e;en i%* as 4 %in)* 0e )i)
not 9no< <0at t0ose reAuirements <ere8 (u'0 an im5li'ation <as in'lu)e) in t0e
t0ir) im5lie) re5resentation* sin'e t0e last element o% t0at re5resentation is t0at #.=
or .r Hone <ere inten)in1 to 'om5l$ <it0 (5anis0 la< in 'arr$in1 out t0e 'ontra'ts8
4n)ee)* t0is re5resentation <oul) 0a;e been ma)e out i% onl$ a small 5er'enta1e o%
t0e 5ur'0ase 5ri'e 0a) to be 5ai) u5 %ront* sin'e t0e reAuirements o% (5anis0 la<
relate to an$ %un)s 5ai) on a''ount8
25>8 T0is 5art o% t0e t0ir) im5lie) re5resentation <as %alse8 W0ere %un)s <ere re'ei;e)
%rom 5ur'0asers o% a5artments bein1 bou10t o%%/5lan* (5anis0 la< reAuire) t0ose
%un)s to be 5la'e) into a )esi1nate) ban9 a''ount se5arate %rom t0e )e;elo5ers? o<n
%un)s* an) a 1uarantee to be in 5la'e to se'ure t0e return o% t0ose %un)s to1et0er <it0
interest i% t0e a5artments <ere not built or <ere not built b$ t0e a1ree) )ate %or
'om5letion8 T0ere <as no intention on t0e 5art o% #.= or .r Hone to 'om5l$ <it0
t0e %irst o% t0ese reAuirements be'ause t0e mone$ <as to be use) to enable .r Hone
to 5a$ o%% 0is 5artner8 +n) sin'e no 1uarantee <as e;er 5ut in 5la'e* it is not )i%%i'ult
%or me to %in) t0at t0ere <as no intention on t0e 5art o% #.= or .r Hone to 'om5l$
<it0 t0e se'on) o% t0ose reAuirements eit0er8
2558 Ho<e;er* 4 )oubt <0et0er .r Cor)ner <oul) 0a;e realise) t0at reAuirin1 t0e <0ole
o% t0e 5ur'0ase 5ri'e to be 5ai) u5 %ront 'arrie) <it0 it t0e im5li'ation t0at it <oul)
be 0an)le) an) use) in a''or)an'e <it0 t0e reAuirements o% (5anis0 la<8 4 )o not
t0in9 t0at t0at <oul) 0a;e 'rosse) 0is min)* an) to be %ran9 4 )o not t0in9 t0at it
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<oul) 0a;e 'rosse) t0e min)s o% t0e 'laimants as <ell8 +1ain* t0is <as not
somet0in1 <0i'0 <oul) 0a;e 'ome u5 on t0eir ra)ar8
2528 8nl( one apartment aailable8 + re'urrent t0eme in .r Cor)ner?s sales 5it'0
relatin1 to t0e a5artments at +lo0a #o$al <as 0is 5ra'ti'e o% tellin1 5otential bu$ers
eit0er t0at t0ere <as onl$ one a5artment le%t or t0at one 0a) :ust be'ome a;ailable8
He tol) .r Ho5le$ t0at t0e sale o% one o% t0e a5artments 0a) %allen t0rou10 an) t0at
0e <as t0ere%ore 5re5are) to o%%er it to .r Ho5le$ an) (ir =eo%%8 4n 0is letter to .r
6o<er?s soli'itors* 0e sai) t0at t0is <as Ht0e last 5ro5ert$ a;ailableI at t0e re)u'e)
5ri'e8 +n) 0a;in1 tol) .r Bar9le$ <0ile t0e$ <ere in .auritius t0at all t0e
a5artments at +lo0a #o$al <0i'0 0a) been o%%ere) at t0e lar1e )is'ount 0a) all been
sol) or <ere un)er o%%er* .r Cor)ner later tol) 0im t0at one o% t0e a5artments 0a)
be'ome a;ailable8 .r Cor)ner 'annot re'all <0et0er 0e tol) .r Ho5le$ <0at .r
Ho5le$ attributes to 0im* but 0e )oes not )en$ t0at 0e tol) .r Bar9le$ <0at .r
Bar9le$ 'laime) 0e sai)8 4 0a;e no )oubt t0at 0e )i) in)ee) tell .r Ho5le$ t0at t0e
sale o% one o% t0e a5artments 0a) %allen t0rou108 4 t0in9 0e 5robabl$ tol) .r Cen$on
as <ell t0at 0e 0a) onl$ one a5artment at +lo0a #o$al le%t8 T0at <as .r Cen$on?s
e;i)en'e* but sin'e t0at re5resentation to .r Cen$on <as not 5lea)e) in t0e latest
;ersion o% t0e 6arti'ulars o% Claim* 4 sa$ no more about t0at8
25-8 .r Cor)ner )enies t0at an$ o% t0is <as %alse8 4% 0e sai) <0at <as attribute) to 0im* it
<as eit0er be'ause t0e sale to .r Bar9le$ o% one o% t0e %i;e a5artments <0i'0 0e 0a)
bou10t 0a) %allen t0rou10* an) .r Hone 0a) release) t0at a5artment ba'9 to .r
Cor)ner* or be'ause .r Hone 0a) release) anot0er a5artment to 0im8 4 )o not
belie;e .r Cor)ner on t0is to5i'8 To t0e eDtent t0at 0e relie) on t0e 5ro5erties sol)
to .r Bro1an* 4 )o not belie;e 0im %or t0e reasons a);an'e) b$ t0e 'laimants as
summarise) at [175] abo;e8 4n an$ e;ent* 0e s5o9e to .r Ho5le$ an) .r Bar9le$*
an) <rote to .r 6o<er?s soli'itors* at )i%%erent times8 4t <as in about &ul$ 2007 t0at
0e tol) .r Ho5le$ t0at t0e sale o% one o% t0e a5artments 0a) %allen t0rou108 He must
0a;e been re%errin1 to anot0er a5artment <0en in F'tober 2007 0e tol) .r Bar9le$
t0at one o% t0e a5artments 0a) be'ome a;ailable be'ause b$ t0en .r Ho5le$ 0a)
a1ree) to bu$ no8 90 +lo0a #o$al <it0 (ir =eo%%8 +n) 0e must 0a;e been re%errin1 to
a %urt0er a5artment <0en on 22 No;ember 2007 0e in%orme) .r 6o<er?s soli'itors
about t0e 5ro5ert$ bein1 t0e last one a;ailable* be'ause b$ t0en .r Bar9le$ 0a)
a1ree) to 1o 0al;es <it0 .r Cor)ner on no8 52 +lo0a #o$al8 He t0ere%ore 0a) to
0a;e been re%errin1 to )i%%erent a5artments* an) 4 )o not belie;e %or one moment t0at
t0e$ all 0a55ene) eit0er to be t0e last one le%t* or to 0a;e :ust be'ome a;ailable <0en
.r Cor)ner s5o9e to .r Ho5le$ an) .r Bar9le$ an) <rote to .r 6o<er?s soli'itors8
4n)ee)* 4 am sure t0at .r Cor)ner 9ne< at t0e time t0at <0at 0e <as sa$in1 <as
untrue8
25"8 The return on the inestment8 .r Cor)ner tol) all o% t0e 'laimants <it0 t0e eD'e5tion
o% .r 4nno'ent about t0e return t0e$ <oul) 1et on t0eir in;estment8 He tol) (ir
=eo%% t0at <0en t0e a5artments <ere built t0e$ <oul) sell %or L250*000/L-00*0008
He tol) .r Ho5le$ t0at t0e$ 'oul) eD5e't a substantial return on t0eir in;estment
<0en t0e )e;elo5ment rea'0e) roo% le;el8 He tol) .r #oberts t0at 0e 'oul) 5ossibl$
)ouble 0is mone$8 T0e note 0e 1a;e to .r Bar9le$ sai) t0at t0e eD5e'te) sellin1
5ri'e in 1>/12 mont0s time <as L200*000/L250*000* an) t0at t0e$ s0oul) be able to
)ouble t0eir mone$ <it0in t0at time8 +n) t0e note 0e 1a;e to .r Cen$on sai) t0at 0e
<oul) be able to sell t0e a5artment %or L550*000/L-00*0008 T0e notes* o% 'ourse*
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
s5ea9 %or t0emsel;es* but .r Cor)ner )oes not )en$ t0at 0e tol) (ir =eo%%* .r
Ho5le$ an) .r #oberts <0at t0e$ attribute to 0im8 He sai) t0at <0at 0e tol) t0em
re5resente) <0at 0e 1enuinel$ t0ou10t about t0eir in;estments8
2598 T0e 'laimants? 'ase is t0at b$ sa$in1 t0ese t0in1s .r Cor)ner <as ma9in1 t0e %i%t0
im5lie) re5resentation* an) in relation to <0at 0e tol) (ir =eo%% an) .r Ho5le$ t0e
se'on) im5lie) re5resentation as <ell8 Ho<e;er* t0e alle1ation t0at <0at .r Cor)ner
sai) to (ir =eo%% an) .r Ho5le$ 'arrie) <it0 it t0e se'on) im5lie) re5resentation <as
not 5lea)e) in t0e latest ;ersion o% t0e 6arti'ulars o% Claim* an) 4 sa$ no more about
it8 +s <it0 t0e re5resentation <0i'0 .r Cor)ner ma)e to .r 4nno'ent an) .r
Cen$on about 0o< 1oo) t0e )eal t0e$ <ere 1ettin1 <as* 4 t0in9 t0at b$ tal9in1 in su'0
o5timisti' terms about t0e return <0i'0 t0e 'laimants <oul) be 1ettin1 on t0eir
in;estment* t0e e%%e't o% <0at .r Cor)ner <as sa$in1 <as t0at #.= <as in a
5osition to 5ass 'lean title* t0at #.= <as inten)in1 to 'arr$ out t0e )e;elo5ment* an)
t0at t0ere <as su%%i'ient %un)in1 in 5la'e to enable t0e a5artments to be built an) t0e
)e;elo5ment to be 'om5lete)8 3or t0e reasons 1i;en at [2>2] abo;e* mu'0 o% t0at
<as %alse* but %or t0e reasons 1i;en at [2>-] abo;e* 4 )o not belie;e t0at eit0er t0e
'laimants or .r Cor)ner realise) t0at 0e <as in e%%e't ma9in1 t0e %i%t0 im5lie)
re5resentation8
2208 The time the construction 'ould take8 + number o% t0e 'laimants <ere 1i;en b$ .r
Cor)ner an estimate o% 0o< lon1 it <oul) ta9e %or t0e 'onstru'tion o% t0e
)e;elo5ment to be 'om5lete)8 (ir =eo%% <as tol) t0at it <oul) ta9e about 1" mont0s8
.r #oberts <as tol) about 2 $ears8 +n) .r Cen$on <as tol)* a)mitte)l$ in .ar'0
200>* t0at it <oul) be 'om5lete) b$ +5ril or .a$ 20058 .r Cor)ner )i) not )en$
an$ o% t0at8 Fn'e a1ain* t0e 'laimants? 'ase is t0at b$ sa$in1 t0ese t0in1s .r Cor)ner
<as ma9in1 t0e %i%t0 im5lie) re5resentation8 4 a1ree* but 4 )o not t0in9 t0at eit0er t0e
'laimants or .r Cor)ner realise) t0at8
2218 A separate account8 T<o o% t0e 'laimants sa$ t0at .r Cor)ner tol) t0em t0at t0eir
mone$ <oul) be 9e5t in a se5arate a''ount8 (ir =eo%% sa$s t0at .r Cor)ner tol) 0im
t0at t0e mone$ <oul) be 9e5t in an es'ro< a''ount <it0 t0e ban9* an) <oul) be
release) in sta1es as t0e 'onstru'tion rea'0e) t0e %irst an) se'on) store$s8 .r
Ho5le$ sa$s t0at .r Cor)ner tol) 0im t0at t0e mone$ 0a) to be 9e5t in a totall$
se5arate a''ount8 T0ose statements 'arrie) <it0 t0em t0e im5li'ation t0at it <as
inten)e) to 9ee5 t0e mone$ in su'0 a''ounts8 .r Cor)ner )enies t0at 0e sai)
an$t0in1 alon1 t0ese lines to t0em8 +ll 0e 9ne< <as t0at t0ere <oul) be a ban9
1uarantee in 5la'e8 Ho<e;er* 4 %in) t0at .r Cor)ner )i) tell .r Ho5le$ <0at .r
Ho5le$ 'laims 0e sai)8 4t is true t0at it <as not in t0e one <itness statement .r
Ho5le$ ma)e8 W0at t0at sai) <as t0at .r Cor)ner 0a) sai) t0at H0e <as obli1ate) to
a''e5t res5onsibilit$ %ormall$ %or t0e a'tions o% #.=I8 T0is <as ;er$ mu'0 Hle1al/
s5ea9I* an) <0en 0e 1a;e e;i)en'e orall$* .r Ho5le$ eD5laine) t0at <0at .r
Cor)ner 0a) a'tuall$ tol) 0im <as t0at t0e %un)s 0a) to be 9e5t in a totall$ se5arate
a''ount* an) t0at it <as 0is res5onsibilit$ to ensure t0at t0e %un)s <ere use) %or <0at
t0e$ <ere su55ose) to be use)8 4 a''e5t 0is e;i)en'e8 4t <as 1i;en in a
strai10t%or<ar) an) o5en <a$* an) sin'e* as 4 %in)* .r Ho5le$?s 5re;ious eD5erien'e
o% bu$in1 5ro5erties o%%/5lan <as t0at t0e %un)s <ere 9e5t in a se5arate a''ount an)
release) in sta1e 5a$ments* it <as :ust t0e sort o% t0in1 <0i'0 0e <oul) <ant to 1et
.r Cor)ner?s assuran'e about8 4n an$ e;ent* %or t0e reasons 1i;en at [10>] abo;e* .r
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
Cor)ner <as a<are t0at #.=?s in/0ouse 5ra'ti'e reAuire) an$ )e5osit 5ai) b$ t0e
5ur'0aser to be 9e5t in a se5arate a''ount maintaine) b$ #.=?s la<$ers8
2228 4 am less sure o% t0e a''ura'$ o% (ir =eo%%?s re'olle'tion on t0e to5i' %or t0e reasons
set out at [52] abo;e8 Not onl$ <as 0e un'ertain about <0en .r Cor)ner tol) 0im
<0at 0e 'laims .r Cor)ner sai)* but it <as somet0in1 <0i'0 (ir =eo%% 'ame out <it0
relati;el$ late in t0e )a$8 Fn balan'e* t0ou10* 4 t0in9 it 5robable t0at .r Cor)ner )i)
sa$ to (ir =eo%% <0at (ir =eo%% 'laims* i% onl$ be'ause 0e <as a<are o% <0at #.=?s
in/0ouse 5ra'ti'e <as* an) <as li9el$ to 0a;e 1i;en t0is eDtra assuran'e to 5ossible
5ur'0asers8 +n) it is 5lain t0at t0e im5li'ation be0in) <0at .r Cor)ner tol) .r
Ho5le$ an) (ir =eo%% <as %alse8 4t <as not inten)e) t0at t0e mone$ <0i'0 (ir =eo%%
an) .r Ho5le$ <as to 5a$ %or t0eir a5artments <as to 1o into an es'ro< a''ount or a
se5arate a''ount* be'ause .r Cor)ner t0ou10t t0at it <as 1oin1 to be use) b$ .r
Hone to bu$ out 0is 5artner8 (o 0e 9ne< t0at it <as %alse as <ell8
2278 The return of their mone(8 + sli10t ;ariation on t0e re5resentation t0at t0e 'laimants?
mone$ <oul) be 9e5t in a se5arate a''ount <as t0e re5resentation <0i'0 a number o%
t0e 'laimants sa$ .r Cor)ner ma)e to t0em t0at i% t0e )e;elo5ment <as not
'om5lete) t0e$ <oul) 1et t0eir mone$ ba'98 (ir =eo%% sa$s t0at 0e <as tol) t0at t0e
ban9 <oul) return 0is mone$ i% t0e )e;elo5ment <as not 'om5lete)8 .r 4nno'ent
sa$s t0at 0e <as tol) t0at 0e <as not to <orr$ about <0at <oul) 0a55en i% t0e site <as
not )e;elo5e) be'ause (5anis0 la< reAuire) a ban9 1uarantee to be in 5la'e* an) su'0
a 1uarantee <oul) be in 5la'e8 .r Bar9le$ sa$s t0at 0e <as tol) t0at t0ere <as* or
<oul) be* a ban9 1uarantee in 5la'e* an) <0en 0e as9e) .r Cor)ner <0at t0at meant*
0e <as tol) t0at i% t0e a5artments <ere not built* t0e in;estors <oul) be 1uarantee)
t0eir mone$ ba'98
22>8 4 s0oul) a)) t0at in 0is %ourt0 <itness statement .r Cen$on sai): H4 0a;e no
re'olle'tion o% .ar9 Cor)ner usin1 t0e s5e'i%i' <or)s Sban9 1uarantee? <0en 0e <as
assurin1 me t0at i% 4 in;este) in +lo0a #o$al m$ in;estment <oul) be sa%e8I
Ho<e;er* in none o% 0is t0ree earlier statements )i) .r Cen$on sa$ t0at .r Cor)ner
0a) 1i;en 0im t0at assuran'e8 .r Cen$on merel$ re%erre) in 0is t0ir) <itness
statement to 0is belie% t0at 0is in;estment <as sa%e be'ause o% t0e trust 0e 0a) in .r
Cor)ner8 4% .r Cor)ner 0a) tol) .r Cen$on t0at 0is in;estment <as sa%e G <0i'0 4
)oubt G 4 )o not t0in9 t0at 0e <as sa$in1 t0at .r Cen$on?s mone$ <as sa%e8 He <as
onl$ sa$in1 t0at it <as not a ris9$ in;estment* i8e8 t0at it <as li9el$ to 5ro)u'e a
return8 4 0a;e alrea)$ )ealt <it0 t0e e%%e't o% a re5resentation o% t0at 9in) at [25"]/
[259] abo;e8
2258 4t <as* t0ere%ore* onl$ .r 4nno'ent an) .r Bar9le$ <0o 'laime) t0at .r Cor)ner 0a)
sai) an$t0in1 to t0em about a ban9 1uarantee8 T0ere is no )oubt t0at .r Cor)ner
s5o9e to t0em about a ban9 1uarantee8 He a''e5ts t0at 0e )i)8 +%ter all* t0e
a;ailabilit$ o% ban9 1uarantees <as a to5i' 'o;ere) in .r West?s sli)e 5resentation %or
#.=?s intro)u'ers* an) intro)u'ers <ere tol) in t0e 1ui)e 5ro)u'e) %or t0eir use t0at
(5anis0 la< reAuire) an$ )e5osit 5ai) b$ t0e 5ur'0aser <0en bu$in1 a 5ro5ert$ o%%/
5lan to be 5rote'te) b$ a ban9 1uarantee <0i'0 <oul) be in 5la'e on'e t0e 5ur'0aser
0a) si1ne) t0e 'ontra't o% sale8 4n an$ e;ent* t0e e;i)en'e o% .r Clar9e on t0e to5i'
G <0i'0 4 unreser;e)l$ a''e5t G is im5ortant8 He <oul) tell 5otential 5ur'0asers t0at
ban9 1uarantees <ere reAuire) b$ (5anis0 la<8 He 0a) )one t0at be'ause it <as li9e
a mantra <0i'0 0e an) t0e ot0er intro)u'ers <ere tol) H;irtuall$ e;er$ )a$I8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
2228 But <0at )i) .r Cor)ner a'tuall$ tell t0em about ban9 1uaranteesP .r Cor)ner?s
o<n e;i)en'e <as t0at .r Hone an) .s Cam5aRa 0a) tol) 0im t0at a ban9 1uarantee
<as in 5la'e <0i'0 <oul) enable 5ur'0asers to 1et t0eir mone$ ba'9 i% t0e units t0e$
<ere bu$in1 <ere not built8 Ho<e;er* sin'e (5anis0 la< reAuires t0e 1uarantee to be
in)i;i)ual to t0e 5ur'0aser* <0at t0e$ must 0a;e meant <as t0at arran1ements 0a)
been ma)e <it0 #.=?s ban9 %or 1uarantees to be 1i;en to 5ur'0asers <0o a1ree) to
bu$ units o%%/5lan8 .r Cor)ner <as not as9e) <0et0er 0e <as a<are t0at t0e
1uarantees 0a) to be in)i;i)ual to t0e 5ur'0asers* or <0et0er 0e '0e'9e) <it0 .r
Hone or .s Cam5aRa 5re'isel$ <0at t0e$ meant8 4n t0e 'ir'umstan'es* 4 'annot sa$
t0at .r Cor)ner tol) .r Bar9le$ t0at a ban9 1uarantee <as alrea)$ in 5la'e* an) 4
%in) t0at <0at 0e tol) .r Bar9le$ <as <0at .r 4nno'ent 'laims .r Cor)ner tol) 0im*
namel$ t0at a ban9 1uarantee <oul) be in 5la'e* an) t0at t0e$ <oul) in e%%e't 1et t0eir
mone$ ba'9 i% t0eir a5artments <ere not built8 +n) i% t0at <as <0at .r Cor)ner tol)
.r 4nno'ent an) .r Bar9le$* 4 t0in9 it 5robable t0at 0e tol) (ir =eo%% <0at (ir =eo%%
'laims .r Cor)ner sai)8
22-8 Tellin1 .r 4nno'ent an) .r Bar9le$ t0at t0ere <oul) be a ban9 1uarantee in 5la'e
'arrie) <it0 it t0e un)oubte) im5li'ation t0at #.= <as inten)in1 to arran1e su'0 a
1uarantee8 +n$ 5re;ious intention to arran1e %or su'0 a 1uarantee <oul) 0a;e 1one
b$ &anuar$ 200> <0en +@ul a1ree) to sell t0e lan) to ,u:a8 +s it is* t0ere 0as been
no e;i)en'e <0ate;er <0i'0 su11ests t0at a 1uarantee <as 5ut in 5la'e be%ore t0en*
an) it is 0i10l$ 5robable t0at b$ t0e time .r Cor)ner tol) .r Bar9le$ in No;ember
2007 t0at t0ere <oul) be a ban9 1uarantee in 5la'e* an$ intention t0at t0ere 0a) been
to arran1e %or one 0a) 'ease) to eDist8 Ho<e;er* t0at 'annot be sai) %or <0at .r
Cor)ner tol) .r 4nno'ent in <0at <oul) 0a;e been earl$ &une 2007* or %or <0at 0e
tol) (ir =eo%% some time be%ore 12 +u1ust 20078 (o alt0ou10 t0e im5li'ation be0in)
<0at 0e tol) .r Bar9le$ <as %alse* 4 'annot sa$ t0at t0e im5li'ation be0in) <0at 0e
tol) .r 4nno'ent or (ir =eo%% <as8
22"8 ,i) .r Cor)ner 9no< t0at t0e im5li'ation be0in) <0at 0e tol) .r Bar9le$ <as %alseP
4t is sai) on be0al% o% .r Bar9le$ t0at .r Cor)ner must 0a;e )one: <0$ else <oul)
0e 0a;e )is'oura1e) .r Bar9le$ %rom 1ettin1 0is o<n le1al a);i'e* an) <0$ else
<oul) 0e 0a;e tol) (ir =eo%% an) .r Ho5le$ t0at t0eir mone$ <oul) be 9e5t in a
se5arate ban9 a''ountP 4 )o not t0in9 t0at eit0er o% t0ese t0in1s s0o< t0at .r
Cor)ner 9ne< in No;ember 2007 t0at it <as not inten)e) to 5ut a ban9 1uarantee in
5la'e8 ,is'oura1in1 5eo5le %rom ta9in1 le1al a);i'e <as more 'onsistent <it0 not
<antin1 t0em to %in) out t0at #.= )i) not 0a;e title to t0e lan)8 +n) 9ee5in1 t0e
mone$ in se5arate a''ounts <as neit0er 'onsistent not in'onsistent <it0 0a;in1 a ban9
1uarantee in 5la'e8 Nor )o 4 t0in9 t0at t0e 'laimants? ar1ument summarise) at [17-]
abo;e is 5ersuasi;e8 T0at onl$ s0o<s t0at .r Cor)ner 9ne< b$ ,e'ember "##1 t0at
t0ere <as no su'0 1uarantee in 5la'e* an) it )oes not 0el5 on <0et0er .r Cor)ner
<oul) 0a;e 9no<n in No;ember 2007 t0at t0ere <as at t0at sta1e no intention to 5ut a
ban9 1uarantee in 5la'e8 Ne;ert0eless* 4 )o t0in9 it 5robable t0at .r Cor)ner 9ne<
t0at t0e im5li'ation be0in) <0at 0e tol) .r Bar9le$ <as %alse8 B$ t0e time 0e tol)
.r Bar9le$ in e%%e't t0at #.= <as inten)in1 to arran1e %or su'0 a ban9 1uarantee*
%i;e mont0s or so 0a) 5asse) sin'e 0e 0a) tol) .r 4nno'ent t0e same t0in18 +n) $et
0e 0imsel% a)mitte) t0at 0e ne;er sa< a 1uarantee8 4 )o not t0in9 t0at 0e <oul) 0a;e
belie;e) in No;ember 2007 t0at #.= <as inten)in1 to arran1e %or a ban9 1uarantee
i% 0e 0a) not b$ t0en seen t0e ban9 1uarantee <0i'0 0e 0a) tol) .r 4nno'ent in &une
2007 <oul) be arran1e)8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
2298 4t is sai) on be0al% o% t0e 'laimants t0at .r Cor)ner?s statement to .r 4nno'ent an)
.r Bar9le$ t0at t0ere <oul) be a ban9 1uarantee in 5la'e 'arrie) <it0 it t0e %i%t0
im5lie) re5resentation8 4 t0in9 t0at is ri10t but onl$ to a limite) eDtent8 .r Cor)ner
<as sim5l$ assurin1 .r 4nno'ent an) .r Bar9le$ t0at t0e intention <as to ma9e
arran1ements <0ereb$ t0e$ <oul) 1et t0eir mone$ ba'9 i% t0e )e;elo5ment )i) not
ta9e 5la'e8 4 )o not t0in9 t0at b$ )oin1 t0at .r Cor)ner <as ma9in1 an$ statement
about 0o< 1oo) t0e )eal <as8 Nor <as 0e sa$in1 t0at an entit$ 'ontrolle) b$ .r
Hone <as in a 5osition to 5ass 'lean title to t0em* or t0at t0ere <as su%%i'ient %un)in1
in 5la'e to enable t0e a5artments to be built an) t0e )e;elo5ment to be 'om5lete)8
But 0e <as sa$in1* 4 t0in9* t0at an entit$ 'ontrolle) b$ .r Hone <as inten)in1 to
'arr$ out t0e )e;elo5ment8 Ha;in1 sai) t0at* 4 0a;e alrea)$ sai) t0at 4 'annot sa$
t0at .r Hone <as not inten)in1 to 'arr$ out t0e )e;elo5ment at t0e time .r Cor)ner
s5o9e to .r 4nno'ent8 4t is more Auestionable <0et0er .r Hone <as inten)in1 to
'arr$ out t0e )e;elo5ment at t0e time .r Cor)ner s5o9e to .r Bar9le$8 4n ;ie< o%
+@ul?s sale o% t0e lan) to ,u:a in &anuar$ 200>* t0ere must 0a;e 'ome a time be%ore
t0e en) o% 2007 <0en .r Hone )e'i)e) t0at neit0er 0e nor an entit$ 'ontrolle) b$ 0im
<oul) be )e;elo5in1 t0e site8 He ma$ 0a;e ma)e t0at )e'ision b$ t0e time .r
Cor)ner s5o9e to .r Bar9le$ about a ban9 1uarantee bein1 in 5la'e* but 4 'annot sa$
t0at 0e 5robabl$ )i)8
2-08 The use of la'(ers8 T0e use o% la<$ers <as a to5i' <0i'0 'ro55e) u5 in all o% .r
Cor)ner?s 'on;ersations <it0 t0e 'laimants8 (ir =eo%% sa$s t0at .r Cor)ner tol) 0im
t0at #.=?s Hin/0ouse la<$erI 'oul) )eal <it0 all t0e le1al <or9 on t0eir* i8e8 0is an)
.r Ho5le$?s* be0al%8 .r Ho5le$ sa$s t0at .r Cor)ner tol) 0im not to bot0er about
obtainin1 in)e5en)ent le1al a);i'e be'ause 0e* .r Cor)ner* <oul) arran1e %or t0at on
t0eir be0al%* a))in1 t0at 0e 0a) )one it man$ times be%ore on ot0er )e;elo5ments
usin1 a %irm 'alle) (5anis0 e1al (er;i'es8 .r 4nno'ent sa$s t0at .r Cor)ner tol)
0im t0at arran1ements <oul) be ma)e %or la<$ers to be instru'te) <0en t0e
a5artment <as built8 .r #oberts sa$s t0at .r Cor)ner tol) 0im t0at 0e 9ne< a
la<$er <0o 'oul) sort out all t0e le1al )o'umentation an) <0o 0e <oul) arran1e to
a't on t0e transa'tion8 .r Bar9le$ sa$s t0at .r Cor)ner tol) 0im t0at a (5anis0
la<$er 0e 9ne<* ($l;ia Cam5aRa* <oul) loo9 a%ter t0e le1al %ormalities %or t0em8
+n) .r Cen$on sa$s t0at .r Cor)ner tol) 0im t0at 0e <oul) be 0an)lin1 t0e le1al
si)e o% t0e 5ur'0ase* an) t0at t0ere <as a (5anis0 la<$er <0o <oul) loo9 a%ter
e;er$t0in1 %or .r Cen$on8
2-18 +t [17"] abo;e* 4 summarise) .r Cor)ner?s e;i)en'e o% <0at 0e sai) to t0e 'laimants
about t0e use o% la<$ers8 4 )o not t0in9 t0at .r Cor)ner?s e;i)en'e <as trut0%ul8 4t
is note<ort0$ t0at alt0ou10 0e 'laims t0at 0e tol) all o% t0em t0at t0e$ 0a) t0e o5tion
o% instru'tin1 t0eir o<n la<$ers or usin1 (5anis0 e1al (er;i'es <0o 0e <oul) 5ut
t0em in tou'0 <it0* 0e )i) not at an$ time sa$ <0at t0e res5onse o% an$ o% t0e
'laimants (<it0 t0e eD'e5tion o% .r Bar9le$) <as <0en 1i;en t0is o5tion8 Nor )i) 0e
sa$ t0at 0e e;er as9e) an$ o% t0em be%ore t0e$ a'tuall$ 1a;e 0im t0eir '0eAues
<0et0er t0e$ 0a) obtaine) le1al a);i'e* <0i'0 0e 'oul) be eD5e'te) to 0a;e as9e)
t0em i% 0e 0a) reall$ 1i;en t0em t0e o5tion8 Nor 'oul) 0e 0a;e t0ou10t t0at t0e$ 0a)
ta9en le1al a);i'e b$ t0e time t0e$ 1a;e 0im t0eir '0eAues* be'ause 0e <oul) 0a;e
9no<n t0at t0e$ 0a) not been 1i;en )ra%t 'ontra'ts o% sale8 T0e$ <ere onl$ sent to
t0e 'laimants <ee9s an) sometimes mont0s later8 Wit0out )ra%t 'ontra'ts* t0e
'laimants 'oul) not 0a;e obtaine) an$ %orm o% in%orme) le1al a);i'e at all8 4 am sure
t0at .r Cor)ner sai) to t0e 'laimants onl$ <0at t0e$ sa$ 0e sai)* bearin1 in min) t0at*
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
<it0 t0e eD'e5tion o% .r 4nno'ent* t0e$ all sa$ broa)l$ s5ea9in1 t0at 0e sai) t0e same
t0in1 to t0em8
2-28 Nor )o 4 t0in9 t0at .r Cor)ner )ealt <it0 .r Bar9le$ an$ )i%%erentl$8 +t [15-]
abo;e* 4 summarise) .r Cor)ner?s e;i)en'e o% 0is 'on;ersations <it0 .r Bar9le$
about t0e use o% la<$ers* but (a) 0a;in1 seen .r Bar9le$* 4 )o not t0in9 %or one
moment t0at 0e <oul) 0a;e been as unintereste) in 1ettin1 le1al a);i'e as .r
Cor)ner sa$s 0e <as* an) (b) it <oul) 0a;e been entirel$ un)erstan)able %or .r
Cor)ner on 0is :oint 5ur'0ase o% no8 52 +lo0a #o$al to su11est to .r Bar9le$ t0at*
<it0 .r Cor)ner?s eD5erien'e o% )ealin1 in 5ro5erties in (5ain* 0e <oul) arran1e %or
t0e a55ro5riate le1al %ormalities to be )one8 +n) %or t0e reasons set out at [15"]
abo;e* 4 )o not belie;e t0at .r Cor)ner s5o9e to .s Cam5aRa about t0e 5ur'0ase o%
no8 52 +lo0a #o$al at all8 4 t0in9 t0at 0e %elt t0at 0e 0a) to sa$ t0at 0e 0a) be'ause
.r Bar9le$?s 5ur'0ase o% no8 52 +lo0a #o$al <as one in <0i'0 0e 0a) a 5ersonal
sta9e8 Ho<e;er* all t0is 0as to be 5ut to one si)e be'ause alt0ou10 it <as 5lea)e)
t0at .r Cor)ner 0a) tol) .r Bar9le$ t0at .s Cam5aRa <oul) )eal <it0 t0e le1al
%ormalities* it <as not 5lea)e) t0at t0is <as sai) be%ore .r Bar9le$ 1a;e .r Cor)ner
0is '0eAue8 4t <as 5lea)e) t0at t0is o''urre) later on <0en t0e$ <ere )is'ussin1 <0$
Wil'0ester 0a) been name) in t0e 'ontra't o% sale as t0e ;en)or8
2-78 T0e last t<o senten'es o% t0e 5re;ious 5ara1ra50 <ere in'lu)e) in a )ra%t o% t0is
:u)1ment <0i'0 <as sent to t0e 5arties %or an$ t$5in1 'orre'tions an) ob;ious errors
to be 5ointe) out8 .r Bar9le$?s le1al team 'ommente) t0at in t0e latest ;ersion o%
t0e 6arti'ulars o% Claim it 0a) been alle1e) t0at all o% t0e 'laimants (lea;in1 asi)e
some o% (ir =eo%%?s in;estments) 0a) 0an)e) o;er t0eir '0eAues in relian'e on .r
Cor)ner?s re5resentations about la<$ers8 T0e$ also ma)e t0e 5oint t0at .r Bar9le$?s
e;i)en'e 0a) been t0at 0e 0a) relie) on t0e re5resentation about la<$ers <0en
0an)in1 o;er 0is '0eAue* t0at 0is e;i)en'e about <0en t0e 'on;ersation bet<een 0im
an) .r Cor)ner about la<$ers 0a) ta9en 5la'e 0a) not been '0allen1e) in 'ross/
eDamination* an) t0at .r Cor)ner?s o<n e;i)en'e 0a) been t0at t0e )is'ussion about
la<$ers 0a) 5re'e)e) t0e 0an)in1 o;er b$ .r Bar9le$ o% 0is '0eAue8 T0at ma$ be
so* but t0e 5ara1ra50s in t0e latest ;ersion o% t0e 6arti'ulars o% Claim <0i'0 <ere
relie) u5on (5aras8 >>* >- an) >") <ere not s5e'i%i' to .r Bar9le$* an) 5ara8 >>
(<0i'0 5lea)e) t0e re5resentations about la<$ers) itsel% sai) t0at t0e s5e'i%i'
re5resentations <ere Has set out in t0e s'0e)ulesI8 T0e 5assa1e in t0e s'0e)ules to
t0e latest ;ersion o% t0e 6arti'ulars o% Claim on t0is to5i' <0i'0 relate) to t0e
re5resentation about la<$ers ma)e to .r Bar9le$ <as in 5ara8 - o% ('0e)ule >8 T0at
5lea)e) t0at .r Cor)ner 0a) tol) .r Bar9le$ t0at .s Cam5aRa <oul) be )ealin1
<it0 t0e le1al %ormalities <0en 0e <as eD5lainin1 <0$ Wil'0ester 0a) been name) in
t0e 'ontra't o% sale* not #.=8 +''or)in1l$* it <as e6pressl( 5lea)e) in .r Bar9le$?s
'ase t0at 0is 'on;ersation <it0 .r Cor)ner about la<$ers 0a55ene) some time a%ter
0e 0a) a1ree) to bu$ no8 52 +lo0a #o$al <it0 .r Cor)ner* sin'e it <as mu'0 later
t0at 0e re'ei;e) t0e 'ontra't o% sale8 +s 4 sai) in [211] abo;e* it is 0o< t0e
re5resentations <ere 5lea)e) t0at is material8
2->8 +s %or .r Cen$on* 0e <as tol) b$ .r Cor)ner t0at 0e 0a) to ma9e u5 0is min) about
in;estin1 in +lo0a #o$al imme)iatel$8 T0ere sim5l$ <as not 1oin1 to be enou10
time %or 0im to instru't la<$ers 0imsel%* so t0e notion t0at 0e <as 1i;en t0e o5tion o%
)oin1 t0at rat0er t0an rel$in1 on .r Cor)ner to 0an)le t0e le1al si)e o% t0e 5ur'0ase
ma9es no sense8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
2-58 4 lea;e .r 4nno'ent asi)e %or t0e moment8 B$ sa$in1 <0at 0e )i) to t0e ot0er
'laimants* .r Cor)ner <as in e%%e't sa$in1 t0at it <as 0is intention to arran1e %or
la<$ers* sometimes re%errin1 to .s Cam5aRa or (5anis0 e1al (er;i'es s5e'i%i'all$*
to loo9 a%ter t0e le1al si)e o% t0in1s8 But <0at )i) 0e mean b$ t0atP 4 )o not t0in9
t0at 0e meant t0at 0e <oul) be arran1in1 %or la<$ers sim5l$ to )ra< u5 t0e
a55ro5riate )o'uments8 6ur'0asers o% 5ro5erties o%%/5lan o;erseas nee) le1al a);i'e
about <0et0er t0e$ <ill 1et title to <0at t0e$ are bu$in1* an) <0et0er t0eir in;estment
is 5rote'te) i% t0e )e;elo5ment is not 'om5lete)8 .r Cor)ner 9ne< t0at* an) t0at
<as <0at 0e meant <0en 0e <as sa$in1 t0at 0e <oul) arran1e %or la<$ers to loo9
a%ter t0e le1al si)e o% t0in1s8 4n s0ort* 0e <as sa$in1 t0at 0e <oul) arran1e %or
la<$ers to a't on t0e 'laimants? be0al% on t0e transa'tions* an) t0at 'arrie) <it0 it t0e
im5li'ation t0at t0at <as <0at 0e <as inten)in1 to )o8 T0at <as t0e %ourt0 im5lie)
re5resentation* an) 4 %in) t0at <0at .r Cor)ner sai) to t0e 'laimants 'arrie) t0at
im5li'ation8 T0at a55lies also to (ir =eo%%* e;en t0ou10 <0at 0e tol) (ir =eo%% <as
t0at t0e le1al <or9 <oul) be )one b$ #.=?s Hin/0ouse la<$erI* sin'e t0e la<$er
<oul) be )oin1 t0at le1al <or9 on behalf of (ir =eo%% an) .r Ho5le$8
2-28 W0at .r Cor)ner sai) to t0e 'laimants <as %alse* an) 9no<n b$ .r Cor)ner at t0e
time to be %alse8 He <as not inten)in1 to arran1e %or la<$ers %or t0e 'laimants at all8
He <as not 1oin1 to )o an$t0in1 on'e t0e sale 0a) been se'ure)8 He 9ne<* o% 'ourse*
t0at .s Cam5aRa <oul) be )ra%tin1 t0e 'ontra'ts o% sale* an) 0an)lin1 an$ ot0er le1al
%ormalities %or #.=* but t0at <as all8 T0ere <as no Auestion o% an$ la<$ers bein1
instru'te) to loo9 a%ter t0e 'laimants? interests8 4t <as sai) t0at t0at <as be'ause .r
Cor)ner kne' t0at t0e 'laimants <oul) not be 1ettin1 title to t0eir a5artments8 4 am
not 'on;in'e) o% t0at* t0ou10 4 t0in9 t0at .r Cor)ner realise) t0at la<$ers 0a) to be
9e5t a<a$ %rom t0e transa'tions be'ause 0e 9ne< somet0in1 %is0$ <as 1oin1 on %rom
t0e terms o% t0e s5e'ial )eal* an) 0a) 0e t0ou10t about <0at t0at <as rat0er t0an bein1
blin)e) b$ t0e 'ommission 0e <as 1oin1 to ma9e* 0e <oul)* %or t0e reasons 1i;en at
[22"] abo;e* 0a;e realise) t0at t0ere <as somet0in1 )o)1$ about title8
2--8 4 return to .r 4nno'ent8 .r Cor)ner )i) not tell .r 4nno'ent t0at 0e <oul) arran1e
%or la<$ers to be instru'te) at t0at sta1e8 He tol) .r 4nno'ent t0at arran1ements
<oul) be ma)e %or la<$ers to be instru'te) <0en 0is a5artment <as built8 T0at is
sai) to 'arr$ <it0 it t0e %ourt0 im5lie) re5resentation8 4 )o not a1ree8 T0e %ourt0
im5lie) re5resentation relate) to <0at .r Cor)ner or #.= inten)e) to )o %or t0e
'laimants on t0eir purchase o% a5artments at +lo0a #o$al8 W0at .r Cor)ner sai) to
.r 4nno'ent relate) to <0at <as inten)e) to be )one <0en 0is a5artment 0a) been
built* <0i'0 <as 1oin1 to be a lon1 time a%ter .r 4nno'ent?s a5artment 0a) been
5ur'0ase)8 4t ma$ be t0at <0at .r Cor)ner tol) .r 4nno'ent ma)e .r 4nno'ent
t0in9 t0at 0e )i) not nee) a la<$er <0en 0e <as bu$in1 t0e a5artment* but it <as not
5lea)e) t0at t0at <as somet0in1 <0i'0 .r 4nno'ent 'oul) 0a;e ta9en %rom <0at .r
Cor)ner tol) 0im8
2-"8 *reious purchasers8 .r 4nno'ent sa$s t0at .r Cor)ner tol) 0im t0at (ir =eo%% an)
.r Cen$on 0a) alrea)$ bou10t a5artments at +lo0a #o$al* an) .r #oberts sa$s t0at
.r Cor)ner tol) 0im t0at Harr$ #e)9na55 0a) bou10t t0ere* an) t0at .artin 6eters*
amon1st ot0ers* <as bu$in1 t0ere8 +t [152] an) [15>] abo;e* 4 summarise) .r
Cor)ner?s e;i)en'e on t0e to5i'8 4 am in'line) to belie;e .r Cor)ner?s e;i)en'e
about <0at 0e tol) .r 4nno'ent8 4% 0e )i) not 9no< t0at .r 4nno'ent 9ne< .r
Cen$on* t0ere <oul) 0a;e been no 5oint in mentionin1 .r Cen$on to 0im8 4% 0e )i)
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
9no< t0at .r 4nno'ent 9ne< .r Cen$on* 0e <as 0ar)l$ li9el$ to 0a;e sai) somet0in1
<0i'0 .r 4nno'ent <oul) Aui'9l$ %in) out <as untrue8 4 )o not )oubt t0at .r
Cor)ner mentione) (ir =eo%% to .r 4nno'ent* sin'e t0at <as at about t0e time <0en
.r Hone <oul) 0a;e been t0in9in1 o% as9in1 (ir =eo%% to 0el5 mar9et #.=* but 4
t0in9 it unli9el$ t0at 0e <oul) a'tuall$ 0a;e sai) to .r 4nno'ent t0at (ir =eo%% 0a)
bou10t an a5artment at +lo0a #o$al8 4 sus5e't t0at .r 4nno'ent 0as 'on%use) tal9 o%
(ir =eo%%?s 'onne'tion <it0 #.= <it0 (ir =eo%% a'tuall$ in;estin1 in one o% #.=?s
5ro5erties8
2-98 +s %or .r #oberts* 4 )o not )oubt t0at .r #oberts <as sent a 'o5$ o% 5art o% Harr$
#e)9na55?s 'ontra't %or t0e 5ur'0ase o% no8 21 +lo0a #o$al8 +%ter all* it <as .r
#oberts <0o )is'lose) it8 But 0e 1ot it a%ter 0e 0a) 0an)e) o;er 0is an) 0is <i%e?s
'0eAue %or t0e a5artment t0e$ <ere bu$in18 He sa$s t0at 0e 1ot it in (e5tember 2007
<0en 0e 1ot 0is 'ontra't %or t0e 5ur'0ase o% no8 2" +lo0a #o$al* but t0at 'annot be
ri10t be'ause t0e 5art o% Harr$ #e)9na55?s 'ontra't <0i'0 0e <as sent a 'o5$ o% <as
)ate) 22 +u1ust "##18 4t must 0a;e been sent to 0im a%ter t0at G 5resumabl$ to
assure .r #oberts t0at 0e <oul) be 1ettin1 t0e a5artment 0e 0a) bou10t in )ue
'ourse8 Ho<e;er* alt0ou10 .r #oberts <as <ron1 about <0en 0e 1ot t0e 'o5$ o%
Harr$ #e)9na55?s 'ontra't (an) alt0ou10 0e 1a;e a number o% ;ersions about 0o< t0e
10 a5artments at +lo0a #o$al <ere be'omin1 a;ailable)* 4 t0in9 it 0i10l$ li9el$ t0at
.r Cor)ner tol) 0im t0at Harr$ #e)9na55 0a) bou10t t0ere* an) t0at .artin 6eters*
amon1 ot0ers* <as bu$in1 t0ere8 T0at <as :ust t0e sort o% t0in1 <0i'0 .r Cor)ner
<oul) sa$ to se'ure t0e sale to .r #oberts8 4t <as not as i% Harr$ #e)9na55 an)
.artin 6eters 0a) no 'onne'tion <it0 #.=8 .r Cor)ner a'9no<le)1e) t0at Harr$
#e)9na55 0a) bou10t 5ro5erties t0rou10 #.= else<0ere8 4t is 5ossible t0at all 0e
tol) .r #oberts about .artin 6eters <as t0at .artin 6eters <as in;estin1 in #.=*
be'ause t0at <as <0at .r Hone 0a) tol) 0im* but 4 t0in9 it mu'0 more li9el$ t0at .r
Cor)ner <ent one ste5 %urt0er an) tol) 0im t0at .artin 6eters <as bu$in1 at +lo0a
#o$al8 +%ter all* .r #oberts <oul) not 0a;e 0a) 'elebrit$ nei10bours G <0i'0 <as
<0at 0e sa$s .r Cor)ner tol) 0im G unless .artin 6eters <as alrea)$ bu$in1 at +lo0a
#o$al8
2"08 W0at .r Cor)ner tol) .r #oberts about Harr$ #e)9na55 an) .artin 6eters <as
%alse8 .r Cor)ner a1ree) t0at Harr$ #e)9na55 0a) not bou10t an a5artment at +lo0a
#o$al* an) 0e 0as not 'laime) t0at .artin 6eters <as bu$in1 t0ere8 (in'e .r
Cor)ner <oul) 0a;e 9no<n <0o 0a) bou10t or <ere bu$in1 a5artments at +lo0a
#o$al G es5e'iall$ i% t0e$ <ere <ell 9no<n G 0e 9ne< t0at <0at 0e tol) .r #oberts
<as %alse8
2"18 Mr Cordners commission8 .r Cor)ner a''e5ts t0at 0e )is'usse) <it0 .r 4nno'ent
t0e 'ommission <0i'0 .r 4nno'ent 'oul) ma9e i% 0e intro)u'e) a 5ur'0aser %or one
o% t0e a5artments at +lo0a #o$al 0imsel%8 T0ere <as B"*000 in it %or 0im8 4t is sai)
t0at t0e im5ression <0i'0 .r 4nno'ent 1ot %rom <0at .r Cor)ner tol) 0im on t0e
to5i' <as t0at (a) B"*000 re5resente) t0e 'ommission <0i'0 Mr Cordner <as ma9in1
on t0e sale o% t0e a5artments at +lo0a #o$al* an) t0at (b) .r Cor)ner <as 5re5are) to
1i;e .r 4nno'ent a s0are o% 0is 'ommission i% .r 4nno'ent intro)u'e) a 5ur'0aser
0imsel%8 4 )i) not un)erstan) .r 4nno'ent to be sa$in1 t0at eit0er o% t0ose t0in1s
<ere t0e im5ression <0i'0 .r Cor)ner 'on;e$e) to 0im8 But lea;in1 t0at asi)e* as
%or (a)* 4 )o not t0in9 t0at .r 4nno'ent could 0a;e 1ot %rom <0at 0e sa$s .r Cor)ner
sai) G namel$* t0at t0ere <as B"*000 to be ma)e i% .r 4nno'ent intro)u'e) a
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
5ur'0aser %or one o% t0e a5artments at +lo0a #o$al 0imsel% G t0at .r Cor)ner <as
sa$in1 t0at 0is o<n 'ommission <as B"*0008 +ll t0at .r 4nno'ent 'oul) 0a;e 1ot out
o% it <as <0at 0e* .r 4nno'ent* <oul) ma9e b$ <a$ o% 'ommission8 +s %or (b)* t0at
<as not t0e re5resentation <0i'0 <as 5lea)e) in t0e latest ;ersion o% t0e 6arti'ulars o%
Claim8 W0at <as 5lea)e) <as t0at .r 4nno'ent 'oul) earn B"*000 0imsel% i% 0e
intro)u'e) a 5ur'0aser8 4 am sure t0at t0is is <0at .r Cor)ner a'tuall$ tol) .r
4nno'ent* an) t0ere is no reason to su55ose t0at it <as %alse8
2"28 Going hales 'ith Mr Barkle(8 .r Bar9le$ sa$s t0at <0en 0e <as <it0 .r Cor)ner
in (5ain an) 0e tol) .r Cor)ner t0at 0e 'oul) not a%%or) to bu$ t0e one a5artment
<0i'0 .r Cor)ner 0a) sai) 0a) be'ome a;ailable* .r Cor)ner sai) t0at 0e <as
<illin1 Hto 1o 0al;esI <it0 .r Bar9le$ on it8 T0at is sli10tl$ )i%%erent %rom t0e <a$
t0e re5resentation <as 5lea)e) in t0e latest ;ersion o% t0e 6arti'ulars o% Claim8 4t
<as 5lea)e) t0at .r Cor)ner?s o%%er to 1o 0al;es <as ma)e at t0e sales 'on;ention in
.auritius s0oul) an a5artment be'ome a;ailable* rat0er t0an in (5ain <0en an
a5artment 0a) be'ome a;ailable8 Ho<e;er* t0at is a )istin'tion <it0out a )i%%eren'e*
bearin1 in min) t0at .r Cor)ner )oes not )is5ute t0at 0e o%%ere) to 1o 0al;es <it0 .r
Bar9le$ on t0e 5ur'0ase o% t0e a5artment8
2"78 But <0at )i) .r Cor)ner?s o%%er to 1o 0al;es <it0 .r Bar9le$ on t0e 5ur'0ase o% t0e
a5artment meanP T0at is t0e 'riti'al Auestion8 B$ o%%erin1 to 1o 0al;es* <as .r
Cor)ner o%%erin1 to 5a$ t0e same amount as .r Bar9le$ <oul) 0a;e to 5a$P 4% t0at
<as <0at 0e <as o%%erin1* 0e 0a) no intention o% 0onourin1 t0at o%%er8 .r Bar9le$
<oul) be 5a$in1 t0e sterlin1 eAui;alent o% L1>9*000 %or 0is 0al%/s0are* but .r
Cor)ner <oul) onl$ be 5a$in1 L2>*-00 %or 0is* on'e 0is 'ommission o% L">*700 0a)
been )e)u'te) %rom t0e sum 0e <oul) ot0er<ise 0a;e 0a) to 5a$8 4n m$ o5inion* .r
Cor)ner?s o%%er to 1o 0al;es amounte) to an o%%er t0at 0e <oul) be 5a$in1 t0e same
amount as .r Bar9le$8 (o i% t0e amount <0i'0 .r Cor)ner <oul) ot0er<ise 0a;e
0a) to 5a$ <as to be re)u'e) b$ su'0 'ommission as 0e <as entitle) to* 0e an) .r
Bar9le$ <oul) be 1oin1 0al;es on t0at 'ommission as <ell8 4t <as to 'on'eal t0e %a't
t0at t0e sum 0e <oul) 0a;e 0a) to 5a$ 0a) been re)u'e) b$ t0e 'ommission to <0i'0
0e <as entitle) G an) b$ su'0 a lar1e amount o% 'ommission at t0at G t0at 0e <as so
relu'tant to )is'lose 0o< 0e 0a) 5ai) %or 0is 0al%/s0are* sin'e t0at <oul) 0a;e
re;eale) t0at t0e$ 0a) not been 1oin1 0al;es at all8 B$ o%%erin1 to 5a$ t0e same
amount as .r Bar9le$* .r Cor)ner <as re5resentin1 t0at i% .r Bar9le$ a''e5te) 0is
o%%er* 0is 'urrent intention <as to 5a$ <0at .r Bar9le$ 0a) to 5a$8 (in'e t0at <as
not 0is intention at t0e time G be'ause 0e 5ro5ose) to )e)u't 0is 'ommission %rom
<0at 0e 0a) to 5a$ G 0is re5resentation to .r Bar9le$ <as %alse* as o% 'ourse 0e 9ne<8
2">8 A special price8 .r Cor)ner a1rees t0at 0e tol) .r Cen$on t0at .r Cen$on <as
1ettin1 0is a5artment at a s5e'ial 5ri'e8 W0et0er t0at <as %alse )e5en)e) on <0at .r
Cor)ner meant8 4t is ar1ue) on .r Cen$on?s be0al% t0at .r Cor)ner 'oul) 0a;e
meant a ;ariet$ o% t0in1s8 4% 0e meant t0at .r Cen$on <as 1ettin1 0is a5artment at a
5ri'e <0i'0 ot0er in;estors at +lo0a #o$al <ere 5a$in1* t0at <as %alse be'ause ot0er
in;estors <ere onl$ 5a$in1 L29"*000 %or t0eir a5artments8 +lternati;el$* .r Cor)ner
is sai) to 0a;e arran1e) <it0 .r Hone t0at 0e 'oul) set t0e 5ri'e o% t0e a5artments
0imsel% 5ro;i)e) t0at t0e$ <ere sol) %or at least L27-*0008 4% .r Cor)ner 'oul) set
t0e 5ri'e 0imsel%* t0ere <as not0in1 Hs5e'ialI about t0e 5ri'e <0i'0 .r Cen$on 0a)
to 5a$ %or 0is a5artment8 4n an$ e;ent* it is sai) t0at b$ tellin1 .r Cen$on t0at t0e
5ri'e <as s5e'ial* .r Cor)ner <as im5lie)l$ sa$in1 t0at t0e 5ri'e 0a) been re)u'e) to
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0e minimum at <0i'0 a 5ro%it 'oul) be ma)e8 (u'0 an im5li'ation <oul) 0a;e been
%alse8
2"58 4 'annot 1o alon1 <it0 an$ o% t0ese 5ossibilities8 .r Cor)ner sim5l$ meant t0at .r
Cen$on <as 1ettin1 0is a5artment at a 5ri'e <ell belo< t0e list 5ri'e8 T0at <as not
%alse8 T0e 5ri'e <0i'0 .r Cen$on <as 0a;in1 to 5a$ %or 0is a5artment G L720*000 G
<as in)ee) <ell belo< t0e list 5ri'e o% L>->*"00* e;en i% it <as more t0an t0e ot0er
'laimants 0a) 0a) to 5a$8
2"28 The che%ues pa(able to RMG8 B$ as9in1 (ir =eo%% an) .r Ho5le$ to ma9e t0eir
'0eAues 5a$able to #.=* it is sai) t0at .r Cor)ner ma)e t0e se'on) im5lie)
re5resentation8 4 )o not t0in9 t0at t0at %ollo<s* but it )oes not matter be'ause 4 0a;e
alrea)$ %oun) at [220] abo;e t0at .r Cor)ner ma)e t0e se'on) im5lie) re5resentation
to (ir =eo%% an) .r Ho5le$ <0en 0e tol) t0em t0at #.= 0a) bou10t t0e site at +lo0a
#o$al %or )e;elo5ment8
2"-8 &ir Geoffs promotional agreement8 W0en (ir =eo%% %irst <ent to .6?s o%%i'e in
ou10ton* bran)e) as it <as as #.=* 0e <as tol) about #.=?s )e;elo5ments*
in'lu)in1 +lo0a #o$al* an) s0o<n 5romotional literature as <ell as 5lans an)
)ra<in1s8 4m5li'it in t0e use o% #.=?s name an) in t0e )es'ri5tion o% its ;arious
)e;elo5ments is sai) to be t0e %irst im5lie) re5resentation8 4t ma$ be t0at t0e %irst
im5lie) re5resentation <as im5li'it in t0e use o% #.=?s name* but #.=?s name <as
not somet0in1 %or <0i'0 .r Cor)ner <as res5onsible8 .oreo;er* 4 )o not t0in9 t0at
t0e %irst im5lie) re5resentation <as im5li'it in t0e )es'ri5tion o% #.=?s ;arious
)e;elo5ments8 W0at 1a;e rise to t0e %irst im5lie) re5resentation <as #.=?s name8
2""8 4m5li'it in t0e statement t0at one o% #.=?s )e;elo5ments <as +lo0a #o$al is sai) to
be t0e se'on) im5lie) re5resentation8 T0is 'o;ers mu'0 t0e same 1roun) as [220]
abo;e* an) 5ro;i)e) t0at .r Cor)ner 'oul) be sai) to 0a;e 5arti'i5ate) in t0e meetin1
su%%i'ientl$ so t0at <0at <as sai) 'oul) be attribute) to 0im as <ell as to .r Hone
(an) .r #o'9all)* 0e must be re1ar)e) as 0a;in1 ma)e t0e se'on) im5lie)
re5resentation to (ir =eo%% at t0e meetin18 (ir =eo%%?s an) .r Cor)ner?s
re'olle'tions o% t0e role .r Cor)ner 5la$e) at t0e meetin1 are set out at [>5] an)
[171] abo;e res5e'ti;el$8 4 5re%er (ir =eo%%?s a''ount o% it8 4t <as .r Cor)ner <0o
<as sellin1 t0e in)i;i)ual units* an) 0e <oul)* 4 t0in9* 0a;e <ante) to eD5lain to (ir
=eo%% <0$ 5eo5le mi10t be ent0usiasti' about in;estin1 in )e;elo5ments li9e +lo0a
#o$al8 T0at is borne out b$ t0e <a$ .r Ho5le$ re'alls (ir =eo%% s5ea9in1 o% .r
Cor)ner as <ell as .r Hone %ollo<in1 t0e meetin18 4n)ee)* m$ im5ression is t0at
.r Hone 5re%erre) to let ot0ers )o t0e tal9in1 <0en it 'ame to sellin18 3or eDam5le*
0e )i) not 1i;e .r Bar9le$ a Hsales 5it'0I <0en .r Bar9le$ sa< 0im in (5ain8
Ha;in1 sai) t0at* .r Cor)ner )i) not 9no< t0at t0e se'on) im5lie) re5resentation <as
%alse %or t0e reasons 1i;en at [225]/[222] abo;e8
2"98 +t t0e meetin1* .r Hone as9e) (ir =eo%% i% 0e <oul) 'onsi)er enterin1 into a
5romotional a1reement <it0 #.=8 4t is sai) t0at im5li'it in t0at reAuest <as t0e %irst
an) se'on) im5lie) re5resentations8 4 lea;e to one si)e <0et0er t0e re5resentations
<ere im5li'it in t0at reAuest* sin'e 4 am not 5ersua)e) t0at .r Cor)ner 'oul) be sai)
to 0a;e 5la$e) a 5art in in;itin1 (ir =eo%% to enter into a %ormal a1reement un)er
<0i'0 0e <oul) be en)orsin1 #.=?s )e;elo5ments8 4t <as .r #o'9all <0o <as
res5onsible %or 5romotin1 #.= an) its )e;elo5ments* an) <0at (ir =eo%% <oul) be
reAuire) to )o un)er su'0 a 5romotional a1reement <as somet0in1 <0i'0 .r #o'9all
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
G alon1 <it0 .r Hone G <oul) 0a;e )is'usse) <it0 (ir =eo%% rat0er t0an .r Cor)ner8
4t <as one t0in1 %or .r Cor)ner to tal9 about #.=?s )e;elo5ments8 4t <oul) 0a;e
been Auite anot0er t0in1 %or 0im to 0a;e tal9e) about (ir =eo%%?s role in 5romotin1
t0em8 4n)ee)* it ma$ <ell be t0at .r Cor)ner <as not e;en t0ere <0en t0e
5romotional a1reement <as bein1 )is'usse)8
2908 &ir Geoffs loan of ,$-#.###8 .r Cor)ner a1rees t0at 0e tol) (ir =eo%% t0at .r Hone
nee)e) to raise a loan %or a )e;elo5ment in Teneri%e* an) t0at .r Hone <ante) (ir
=eo%% to len) 0im B750*0008 He )oes not )en$ t0at 0e tol) (ir =eo%% t0at (ir =eo%%
<oul) be re5ai) B595*000 b$ t0e en) o% ,e'ember 20058 He a1rees t0at 0e tol) (ir
=eo%% t0at t0e se'urit$ %or t0e loan <oul) be in t0e %orm o% a pagar/ '0eAue* an) t0at
it <as a 'riminal o%%en'e in (5ain to )is0onour su'0 a '0eAue <0en it <as 5resente)
%or 5a$ment8 He <as sa$in1 in e%%e't t0at a pagar/ <oul) be 1oo) se'urit$ %or t0e
loan8 4t is sai) on be0al% o% (ir =eo%% t0at .r Cor)ner <ent so %ar as to tell 0im t0at
He;er$t0in1 <as se'ureI8 T0at <as not (ir =eo%%?s e;i)en'e8 His e;i)en'e <as t0at
.r Cor)ner 'on;in'e) 0im t0at e;er$t0in1 <as se'ure* an) t0at ma$ t0ere%ore 0a;e
sim5l$ been (ir =eo%%?s ta9e on t0e en%or'eabilit$ o% t0e se'urit$ bein1 o%%ere)8
2918 T0ere are t<o ot0er t0in1s <0i'0 .r Cor)ner is sai) to 0a;e tol) (ir =eo%%8 3irst* (ir
=eo%% 'laims t0at .r Cor)ner tol) 0im t0at 0e 0a) alrea)$ ma)e a loan to .r Hone in
'onne'tion <it0 t0e 5ro:e't8 But as 4 sai) at [22] abo;e* t0at <as ;er$ mu'0 an
a%tert0ou10t on (ir =eo%%?s 5art* an) t0ere is no re%eren'e to .r Cor)ner 0a;in1 sai)
an$t0in1 about t0at in (ir =eo%%?s <itness statement8 4 mu'0 5re%er (ir =eo%%?s
ori1inal e;i)en'e <0i'0 <as t0at .r Cor)ner tol) 0im t0at 0e <as 0imsel% len)in1
to<ar)s t0e B7m in all <0i'0 .r Hone <as tr$in1 to raise8 T0ere is a subtle but
im5ortant )i%%eren'e bet<een .r Cor)ner an) (ir =eo%%8 4% (ir =eo%%?s re'olle'tion
o% <0at .r Cor)ner tol) 0im is ri10t* .r Cor)ner <as sa$in1 t0at 0e 0a) alrea)$
)e'i)e) to ma9e a loan to .r Hone8 T0at is t0e e%%e't o% .r Cor)ner 0a;in1 sai) t0at
0e <as 0imsel% len)in1 to .r Hone8 .r Cor)ner sa$s t0at 0e tol) (ir =eo%% onl$ t0at
0e <as 'onsi)erin1 len)in1 to .r Hone 0imsel%* not t0at 0e <as )oin1 so (<0i'0
su11este) t0at 0e 0a) alrea)$ )e'i)e) to )o so)8
2928 (e'on)l$* t0ou10* .r Cor)ner a1rees t0at <0en 0e 0ear) t0at .r Ho5le$ 0a) as9e)
%or a))itional se'urit$ in t0e %orm o% a '0ar1e o;er an a5artment at +lo0a #o$al* 0e
tol) (ir =eo%% t0at 0e <ante) se'urit$ o% t0at 9in) as <ell8 T0at is eAuall$ 'onsistent
<it0 .r Cor)ner 0a;in1 tol) (ir =eo%% t0at 0e <as len)in1 to .r Hone an) 0a;in1
sai) t0at 0e <as onl$ 'onsi)erin1 )oin1 so8 W0at ma9es me t0in9 it mu'0 more
li9el$ t0at 0e tol) (ir =eo%% t0at 0e <as in)ee) len)in1 mone$ to .r Hone is t0at 4
a''e5t (ir =eo%%?s e;i)en'e t0at later on .r Cor)ner tol) 0im t0at 0e* .r Cor)ner*
0a) been re5ai) <0at 0e 0a) in;este)8 (in'e 0e 0a) not ma)e a loan to .r Hone* 0e
<oul) onl$ 0a;e sai) t0at 0e 0a) i% 0e 0a) 5re;iousl$ tol) (ir =eo%% t0at 0e 0a) been
len)in1 to 0im8
2978 W0at .r Cor)ner tol) (ir =eo%% is sai) to 'arr$ <it0 it t0ree im5lie) re5resentations:
(i) t0at .r Cor)ner belie;e) t0at .r Hone?s %inan'es <ere su'0 t0at .r Hone <oul)
be able to re5a$ t0e B595*000 b$ t0e en) o% ,e'ember 2005U (ii) t0at an entit$
'ontrolle) b$ .r Hone <as rea)$* <illin1 an) able to 'arr$ out t0e )e;elo5ment at
+lo0a #o$alU an) (iii) t0at (5anis0 la< 5ermitte) an a5artment to be sol) b$ <a$ o%
se'urit$ %or a loan <0i'0 <as to be use) to %inan'e a )e;elo5ment in Teneri%e8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
29>8 4n m$ o5inion* t<o o% t0ese re5resentations <ere im5li'it in <0at .r Cor)ner tol) (ir
=eo%%8 B$ tellin1 (ir =eo%% t0at 0e* .r Cor)ner* <as len)in1 to .r Hone* .r
Cor)ner <as tellin1 (ir =eo%% t0at 0e <as 'on%i)ent t0at 0e <oul) 1et 0is mone$ ba'98
(in'e 0e <oul) 0ar)l$ 0a;e been len)in1 to .r Hone unless 0e <as 1oin1 to 1et a
1oo) return on 0is loan* 0e <as also tellin1 (ir =eo%% t0at 0e <as 'on%i)ent t0at 0e
<oul) 1et t0e return on 0is loan as <ell8 T0at <as tantamount to 0im tellin1 (ir
=eo%% t0at 0e belie;e) t0at .r Hone <oul) be able to re5a$ 0im* .r Cor)ner* an)
<oul) in %a't )o so8 (in'e it <as .r Cor)ner <0o <as rela$in1 to (ir =eo%% .r
Hone?s reAuest %or a loan a1ainst t0e ba'91roun) o% .r Cor)ner?s o<n 'on%i)en'e
about .r Hone?s abilit$ an) <illin1ness to re5a$ .r Cor)ner* t0at <as tantamount to
0im tellin1 (ir =eo%% t0at 0e belie;e) t0at .r Hone <oul) be able to re5a$ (ir =eo%%
t0e amount <0i'0 0e 5romise) to re5a$ 0im* an) <oul) in %a't )o so* <0i'0 is
re5resentation (i)8
2958 T0e same 1oes %or re5resentation (ii)8 B$ tellin1 (ir =eo%% t0at 0e* .r Cor)ner*
<ante) t0e same sort o% a))itional se'urit$ <0i'0 .r Hone 0a) o%%ere) to .r Ho5le$
G a '0ar1e o;er an a5artment at +lo0a #o$al G 0e <as sa$in1 to (ir =eo%% t0at an
entit$ 'ontrolle) b$ .r Hone <as rea)$* <illin1 an) able to 'arr$ out t0e
)e;elo5ment at +lo0a #o$al* be'ause onl$ t0en <oul) su'0 a))itional se'urit$ reall$
amount to se'urit$ %or t0e loan8 Ho<e;er* 4 )o not t0in9 t0at re5resentation (iii) <as
im5li'it in an$t0in1 <0i'0 .r Cor)ner tol) (ir =eo%%8 4t is im5ortant to remember
t0at t0e a))itional se'urit$ <0i'0 .r Cor)ner tol) (ir =eo%% 0e <ante) <as t0e same
se'urit$ as .r Hone o%%ere) to .r Ho5le$8 T0at o%%er <as %or a '0ar1e o;er an
a5artment at +lo0a #o$al* an) so i% re5resentation (iii) 0a) been t0at (5anis0 la<
5ermitte) an a5artment to be '0ar1e) (rat0er t0an sol)) b$ <a$ o% se'urit$ %or a loan
<0i'0 <as to be use) to %un) a )e;elo5ment o;erseas* t0at mi10t 0a;e been a
re5resentation <0i'0 <as im5li'it in <0at .r Cor)ner 0a) tol) (ir =eo%%8 4t is true
t0at t0e a))itional se'urit$ <0i'0 .r Ho5le$ <as subseAuentl$ o%%ere) <as not a
'0ar1e o;er su'0 an a5artment* but t0e sale to .r Ho5le$ o% an a5artment at +lo0a
#o$al* <it0 an obli1ation on .r Hone to bu$ it ba'9 later on8 But t0at )i) not a%%e't
t0e nature o% t0e re5resentation <0i'0 .r Cor)ner ma)e to (ir =eo%%8 4n an$ e;ent* 4
am 'om5letel$ un5ersua)e) t0at b$ rela$in1 to (ir =eo%% t0e a))itional se'urit$ <0i'0
.r Ho5le$ <ante)* an) b$ tellin1 (ir =eo%% t0at 0e* .r Cor)ner* <ante) t0e same
se'urit$ %or 0imsel%* .r Cor)ner <as sa$in1 an$t0in1 about <0at (5anis0 la<
5ermitte)8 4n)ee)* unli9e re5resentations (i) an) (ii)* neit0er 0e nor (ir =eo%% <oul)
0a;e realise) t0at <0at 0e tol) (ir =eo%% <as 'a5able o% 'arr$in1 t0at im5li'ation8
2928 Was re5resentation (i) %alseP 4t ma$ <ell be t0at .r Hone?s tal9 o% a 5ro:e't in
Teneri%e <as untrue8 4t <as 0is <a$ o% 1ettin1 5eo5le to len) 0im mone$8 But 4 )o
not t0in9 t0at .r Cor)ner t0ou10t t0at .r Hone?s 'laim about nee)in1 %un)s %or t0e
)e;elo5ment in Teneri%e <as untrue8 +ll .r Cor)ner 'oul) see <as (a) t0e
'ommission 0e <oul) earn i% 0e 'oul) %in) 5eo5le 5re5are) to len) to .r Hone* an)
(b) t0e return <0i'0 0e <oul) ma9e i% 0e lent to .r Hone8 He must 0a;e realise)
t0at .r Hone <as stra55e) %or 'as08 W0$ else <oul) .r Hone 0a;e nee) to borro<
mone$P +n) 0e must 0a;e realise) t0at .r Hone 'oul) not raise %un)s in t0e
'on;entional <a$ b$ borro<in1 %rom %inan'ial institutions8 +lt0ou10 0e t0ou10t t0at
.r Hone )i) not borro< %rom ban9s* 0e must 0a;e realise) t0at it <oul) 0a;e been
more a''urate to sa$ t0at ban9s <oul) not len) to 0im8 T0at <as <0$ .r Hone 0a)
to o%%er su'0 a 0i10 rate o% return to in;estors <0o <ere 5re5are) to len) to 0im8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
29-8 But t0e Auestion is <0et0er .r Cor)ner belie;e) t0at .r Hone <oul) 5a$ (ir =eo%%
B595*000 b$ t0e en) o% ,e'ember 20058 T0e %a't t0at 0e <as stra55e) %or 'as0 an)
<it0out ot0er %orms o% %un)in1 a;ailable to 0im in .a$ 200> )i) not o% itsel% mean
t0at 0is %inan'es <oul) be :ust as 5re'arious at t0e en) o% 20058 4n)ee)* .r Cor)ner
sai) G an) 0ere 4 t0in9 0e <as tellin1 t0e trut0 G t0at .r Hone 0a) tol) 0im about 0o<
mu'0 more 0e <oul) be ma9in1 on t0e )e;elo5ment in Teneri%e8 4t %ollo<s t0at
re5resentation (i) <as not %alse8
29"8 #e5resentation (ii) <as un)eniabl$ %alse be'ause b$ .a$ 200> +@ul 0a) alrea)$
a1ree) G albeit 5ri;atel$ G to trans%er t0e site at +lo0a #o$al to ,u:a8 But )i) .r
Cor)ner belie;e t0at re5resentation (ii) <as untrueP 4 )o not t0in9 t0at 0e )i)8 4 )o
not t0in9 t0at 0e realise) t0at #.= (or some ot0er entit$ 'ontrolle) b$ .r Hone) <as
not inten)in1 to 'arr$ out t0e )e;elo5ment at +lo0a #o$al until ;er$ mu'0 later8
2998 Ha;in1 )ealt <it0 t0e re5resentations <0i'0 are sai) to 0a;e been im5li'itl$ ma)e b$
.r Cor)ner to (ir =eo%%* t0ere is one im5ortant eD5ress re5resentation <0i'0 4 0a;e
%oun) .r Cor)ner ma)e G namel$ t0at 0e <as 0imsel% len)in1 to .r Hone8 +s 4
0a;e sai)* .r Cor)ner )enies sa$in1 t0at8 He a)mits onl$ to 0a;in1 sai) t0at 0e <as
'onsi)erin1 len)in1 to .r Hone8 But 4 0a;e )isbelie;e) 0im on t0at issue8 Fn t0e
basis o% <0at 4 0a;e %oun) 0e sai)* <0at 0e sai) <as %alse be'ause .r Cor)ner
a''e5ts t0at 0e )i) not len) to .r Hone at all8 He <oul) t0ere%ore 0a;e 9no<n t0at
<0at 4 %in) 0e sai) to (ir =eo%% <as untrue8
7008 3inall$* 4 0a;e not o;erloo9e) t0at .r Cor)ner )oes not )is5ute t0at 0e s5o9e to .r
Cen$on about .r Cen$on len)in1 to .r Hone8 ,es5ite .r Cor)ner?s )enial* 4 am
sure t0at it <as 0e* rat0er t0an .r Hone or an$one else* <0o sent t0e 'o5$ o% .r
omas? 'ontra't to .r Cen$on* but t0at 0as not 0el5e) one <a$ or t0e ot0er on
<0et0er <0at .r Cor)ner tol) (ir =eo%% 'arrie) <it0 it an$ o% t0e t0ree im5li'ations
alle1e)* or <0at 0e belie;e) about t0e trut0 or %alsit$ o% t0ose im5lie) re5resentations8
H. The causes of action
7018 3eceit8 T0e e%%e't o% t0e %in)in1s 4 0a;e ma)e is t0at t0e re5resentations 5lea)e) in
t0e 6arti'ulars o% Claim <0i'0 .r Cor)ner ma)e <0i'0 <ere %alse an) 9no<n b$ 0im
to be %alse <0en 0e ma)e t0em <ere:
(a) t0at 0e <as t0e '0airman o% #.= (<0i'0 <as <0at 0e tol) (ir =eo%%* .r
Ho5le$ an) .r Cen$on)*
(b) t0at .r Hone nee)e) to raise t0e mone$ to bu$ out 0is 5artner (<0i'0 .r
Cor)ner 9ne< <as %alse b$ t0e time 0e tol) t0at to .r Cen$on)*
(') t0at t0e a5artments at +lo0a #o$al <0i'0 0e <as sellin1 <ere 0is (<0i'0
<as <0at 0e tol) .r #oberts)*
()) t0at some o% t0e a5artments at +lo0a #o$al 0a) been ta9en b$ members o%
0is %amil$ (<0i'0 <as <0at 0e tol) (ir =eo%%* .r Ho5le$ an) .r Cen$on)*
(e) t0at onl$ one a5artment <as a;ailable (<0i'0 <as <0at 0e tol) .r Ho5le$
an) .r Bar9le$)*
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
(%) t0at t0eir mone$ <oul) be 9e5t in a se5arate a''ount (<0i'0 <as <0at 0e
tol) (ir =eo%% an) .r Ho5le$)*
(1) t0at t0ere <oul) be a ban9 1uarantee in 5la'e* <0i'0 'arrie) <it0 it t0e
im5li'ation t0at #.= <as inten)in1 to arran1e %or one (<0i'0 .r Cor)ner 9ne<
<as %alse b$ t0e time 0e tol) t0at to .r Bar9le$)*
(0) t0at 0e <oul) arran1e %or la<$ers to a't on t0e 'laimants? be0al%* namel$
t0e %ourt0 im5lie) re5resentation (<0i'0 <as <0at .r Cor)ner in e%%e't tol) (ir
=eo%%* .r Ho5le$* .r #oberts an) .r Cen$on)*
(i) t0at Harr$ #e)9na55 0a) bou10t at +lo0a #o$al an) t0at .artin 6eters <as
bu$in1 t0ere (<0i'0 <as <0at 0e tol) .r #oberts)*
(:) t0at 0e <as 5re5are) to 1o 0al;es <it0 .r Bar9le$ on t0e 5ur'0ase o% no8
52 +lo0a #o$al (<0i'0 <as <0at 0e tol) .r Bar9le$)* <0i'0 'arrie) <it0 it t0e
im5li'ation t0at .r Cor)ner <as inten)in1 to 5a$ <0at .r Bar9le$ 0a) to 5a$*
an)
(9) t0at 0e <as len)in1 mone$ to .r Hone in 'onne'tion <it0 .r Hone?s
)e;elo5ment in Teneri%e (<0i'0 <as <0at 0e tol) (ir =eo%%)8
#e5resentations (a)/(:) relate) to t0e 'laimants? in;estments in +lo0a #o$al8
#e5resentation (9) relate) to (ir =eo%%?s loan o% B750*000 to .r Hone8 T0ere <as no
re5resentation 5lea)e) in t0e 6arti'ulars o% Claim <0i'0 4 0a;e %oun) to be %alse an)
9no<n b$ .r Cor)ner to be %alse <0i'0 relate) to (ir =eo%%?s 5romotional a1reement*
an) (ir =eo%%?s 'laim a1ainst .r Cor)ner in )e'eit relatin1 to t0e 5romotional
a1reement t0ere%ore %ails8
7028 3or re5resentations (a)/(:) to amount to )e'eit* .r Cor)ner must 0a;e inten)e) t0e
'laimants to 0a;e a'te) on t0em* <0i'0 in t0is 'onteDt means t0at 0e must 0a;e sai)
<0at 0e sai) in or)er to 5ersua)e t0e 'laimants to bu$ one o% t0e a5artments on o%%er
at +lo0a #o$al* an) to 5ersua)e (ir =eo%% to len) .r Hone t0e B750*000 <0i'0 .r
Hone <as as9in1 %or8 ea;in1 asi)e re5resentation (a)* 4 0a;e no )oubt t0at ea'0 o%
t0e re5resentations (b)/(:) <ere ma)e in or)er to 5ersua)e t0e 'laimants to bu$ one o%
t0e a5artments on o%%er at +lo0a #o$al* an) t0at re5resentation (9) <as ma)e to
5ersua)e (ir =eo%% to len) .r Hone t0e B750*0008 .r Cor)ner ma)e re5resentation
(b) to eD5lain to .r Cen$on <0$ t0e one a5artment le%t at +lo0a #o$al <as 1oin1 so
'0ea5l$* be'ause .r Cen$on mi10t ot0er<ise 0a;e been sus5i'ious about t0e Hs5e'ial
5ri'eI 0e <as 1ettin18 .r Cor)ner ma)e re5resentation (') to eD5lain to .r #oberts
<0$ 0e <as able to sell t0e a5artment to 0im at a )is'ount* be'ause .r #oberts mi10t
ot0er<ise 0a;e been sus5i'ious about t0e )eal 0e <as bein1 o%%ere)8 .r Cor)ner
ma)e re5resentation ()) to 1i;e (ir =eo%%* .r Ho5le$ an) .r Cen$on 'on%i)en'e t0at
t0eir in;estments at +lo0a #o$al <ere <ort0 ma9in1* sin'e .r Cor)ner <oul) 0ar)l$
0a;e allo<e) members o% 0is %amil$ to in;est t0ere i% t0e$ <ere not8 .r Cor)ner
ma)e re5resentation (e) to 1i;e .r Ho5le$ an) .r Cen$on t0e im5ression t0at t0e
a5artments <ere in 'onsi)erable )eman)* be'ause t0at <oul) also 1i;e t0em
'on%i)en'e t0at t0eir in;estments <ere <ort0 ma9in18 .r Cor)ner ma)e
re5resentations (%) an) (1) to 1i;e (ir =eo%%* .r Ho5le$ an) .r Bar9le$ t0e 'om%ort
o% 9no<in1 t0at i% t0e )e;elo5ment <as not 'arrie) out t0e$ <oul) be able to 1et t0eir
mone$ ba'98 .r Cor)ner ma)e re5resentation (0) to (ir =eo%%* .r Ho5le$* .r
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
#oberts an) .r Cen$on be'ause 0e realise) t0at t0ere <as a '0an'e t0at t0e$ <oul)
not 1o a0ea) <it0 t0eir 5ur'0ases o% a5artments at +lo0a #o$al i% t0e$ obtaine) le1al
a);i'e %or t0emsel;es* sin'e 0e 9ne< %rom t0e terms o% t0e s5e'ial )eal t0at
somet0in1 %is0$ <as 1oin1 on* an) t0at mi10t <ell be )is'o;ere) b$ t0e la<$ers8 .r
Cor)ner ma)e re5resentation (i) to .r #oberts to ma9e 0im t0in9 t0at 0e <oul) 0a;e
'elebrit$ nei10bours at +lo0a #o$al* <0i'0 <oul) ma9e 5ur'0asin1 an a5artment
t0ere an e;en more attra'ti;e 5ro5osition8 .r Cor)ner ma)e re5resentation (:) to .r
Bar9le$ be'ause 0e sus5e'te) t0at i% .r Bar9le$ 9ne< t0at t0e substantial
'ommission 0e <as earnin1 <oul) re)u'e si1ni%i'antl$ t0e amount t0at 0e <oul) be
5a$in1* .r Bar9le$ <oul) 0a;e insiste) t0at t0e$ s0are t0e 'ommission G somet0in1
<0i'0 .r Cor)ner <oul) not 0a;e been 5re5are) to )o* in <0i'0 'ase .r Bar9le$
<oul) not 0a;e 1one a0ea) <it0 t0e 5ur'0ase8 +n) .r Cor)ner ma)e re5resentation
(9) to 1i;e (ir =eo%% t0e 'on%i)en'e t0at 0e <oul) 1et 0is B750*000 ba'9 5lus t0e
a))itional B2>5*000 sin'e .r Cor)ner <oul) 0ar)l$ 0a;e been len)in1 to .r Hone i%
0e <as not 'on%i)ent about t0at8
7078 ,i%%erent 'onsi)erations a55l$ to re5resentation (a)8 .r Cor)ner )i) not 'all 0imsel%
t0e '0airman o% #.= to 5ersua)e t0e 'laimants to in;est in +lo0a #o$al8 He 'alle)
0imsel% t0e '0airman be'ause t0at <as <0at .r Hone <as 'ontent to let .r Cor)ner
'all 0imsel%* an) be'ause it 1a;e 0im status8
70>8 4 turn to anot0er %eature o% t0e la< o% )e'eit <0i'0 0as to be 5ro;e) %or t0e
re5resentations to be a'tionable* an) t0at is t0at t0e 'laimants <ere in%luen'e) b$ t0e
re5resentations8 T0e$ 0a;e to 5ro;e t0at t0e$ a'te) in relian'e on .r Cor)ner?s
re5resentations8 4% t0e$ <oul) 0a;e in;este) in +lo0a #o$al e;en <it0out t0ose
re5resentations* t0eir 'laims %or )e'eit <ill %ail8 (o too <ill (ir =eo%%?s 'laim relatin1
to 0is loan o% B750*000 to .r Hone8 Ho<e;er* t0e re5resentations nee) not 0a;e
been t0e sole 'ause o% t0e 'laimants a'tin1 as t0e$ )i)8 6ro;i)e) t0at t0e
re5resentations 'ontribute) substantiall$ to <0at t0e$ )i)* t0at <ill be enou108 (o i%
t0e 'laimants <ere in%luen'e) 5artl$ b$ t0e re5resentations (albeit su%%i'ientl$
in%luen'e) %or t0ose re5resentations to 0a;e 'ontribute) substantiall$ to <0at t0e$
)i))* .r Cor)ner <ill not be an$ t0e less liable be'ause t0e 'laimants <ere 5artl$
in%luen'e) b$ ot0er t0in1s8
7058 4 )eal %irst <it0 t0e re5resentation <0i'0 .r Cor)ner ma)e to 5ersua)e (ir =eo%% to
len) .r Hone B750*0008 T0ere <ere* 4 t0in9* man$ t0in1s <0i'0 5ersua)e) (ir
=eo%% to len) to .r Hone8 T0ere <as .r Hone?s 5lausibilit$ an) t0e aura o% su''ess
an) <ealt0 <0i'0 surroun)e) 0im8 T0ere <as t0e se'urit$ (su'0 as it <as) o% t0e
pagar/ '0eAue8 But most im5ortant o% all <as t0e si@e o% t0e return8 4t <as a
brilliant )eal G some mi10t sa$ too 1oo) to be true G but it <as be'ause (ir =eo%%
'oul) ma9e so mu'0 in so s0ort a time t0at 0e <as less 'autious t0an 0e ot0er<ise
mi10t 0a;e been8 T0at <as <0$ 0e )e'i)e) to 5ro'ee) <it0 t0e loan )es5ite .r
(im5son?s a);i'e t0at it <as un<ise to )o so8 T0e %a't is G an) 4 )o not 'riti'ise (ir
=eo%% %or t0is %or one moment G 0e )e'i)e) to trust 0is o<n :u)1ment about .r Hone8
T0e %a't t0at 0is :u)1ment turne) out to be <ron1 <as one o% t0ose t0in1s8 4 )o not
)oubt t0at (ir =eo%% <as 5artl$ in%luen'e) b$ <0at 0e <oul) 0a;e ta9en to be .r
Cor)ner?s o<n 'on%i)en'e in len)in1 to .r Hone* but 4 also 0a;e no )oubt t0at t0is
<as a %a'tor <0i'0 )i) not <ei10 all t0at mu'0 <it0 (ir =eo%%8 4 'annot sa$*
t0ere%ore* t0at .r Cor)ner?s re5resentation t0at 0e <as len)in1 to .r Hone 0imsel%
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
'ontribute) substantiall$ to (ir =eo%%?s )e'ision to len) .r Hone t0e B750*000* an)
(ir =eo%%?s 'laim a1ainst .r Cor)ner in )e'eit relatin1 to t0e loan t0ere%ore %ails8
7028 4 turn to t0e 5lea)e) re5resentations <0i'0 .r Cor)ner ma)e to 5ersua)e t0e
'laimants to in;est in +lo0a #o$al <0i'0 4 0a;e %oun) to be %alse an) 9no<n b$ .r
Cor)ner to be %alse at t0e time8 He ma)e re5resentation ())* (%) an) (0) to (ir =eo%%8
He ma)e re5resentations ())* (e)* (%) an) (0) to .r Ho5le$8 He ma)e re5resentations
(')* (0) an) (i) to .r #oberts8 He ma)e re5resentations (e)* (1) an) (:) to .r Bar9le$8
+n) 0e ma)e re5resentations (b)* ()) an) (0) to .r Cen$on8 4 0a;e no )oubt t0at
ea'0 o% t0ese re5resentations 5la$e) a 5art in t0eir )e'isions to in;est in +lo0a #o$al*
re5resentation (0) 5la$in1 its 5art in 5ersua)in1 t0em to in;est in +lo0a #o$al <it0out
obtainin1 t0eir o<n le1al a);i'e8 4 )o not )oubt t0at ot0er %a'tors <ent into t0eir
)e'isions to in;est in +lo0a #o$al* %or eDam5le* <0at t0e$ <ere tol) about #.=?s
)e;elo5ments an) t0e 5ro5osals %or t0e site at +lo0a #o$al* t0e 5ri'es t0e$ <ere
o%%ere) t0e a5artments %or <0en 'om5are) <it0 t0e list 5ri'e* t0e returns <0i'0 t0e$
<ere tol) t0e$ 'oul) ma9e on t0eir in;estments* as <ell as t0e ;arious t0in1s <0i'0
t0e$ <ere tol) b$ .r Cor)ner <0i'0 4 0a;e %oun) eit0er to be true or not 9no<n b$
.r Cor)ner to be %alse8 (imilarl$* %a'tors <0i'0 mi10t 0a;e in%luen'e) some o% t0em
)i) not in%luen'e ot0ers8 3or eDam5le* .r Cen$on sai) t0at a ban9 1uarantee <as o%
no im5ortan'e to 0im8 But loo9in1 at t0e 'ases o% (ir =eo%%* .r Ho5le$* .r #oberts*
.r Bar9le$ an) .r Cen$on se5aratel$ %rom ea'0 ot0er* an) 'om5arin1 (a) t0e
5lea)e) re5resentations <0i'0 .r Cor)ner 9ne< to be %alse <0i'0 <ere ma)e to t0em
<it0 (b) t0e ot0er t0in1s <0i'0 ma)e t0em in;est in +lo0a #o$al* 4 0a;e 'on'lu)e)
t0at t0e 5lea)e) re5resentations <0i'0 .r Cor)ner 9ne< to be %alse <0i'0 <ere ma)e
to t0em 'ontribute) substantiall$ to t0eir )e'isions to in;est in +lo0a #o$al8 4t
%ollo<s t0at t0e 'laims o% (ir =eo%%* .r Ho5le$* .r an) .rs #oberts* .r Bar9le$ an)
.r Cen$on a1ainst .r Cor)ner in )e'eit relatin1 to t0eir 5ur'0ases o% nos8 52* 20* 2>*
2" an) 90 +lo0a #o$al su''ee)8
70-8 Ho<e;er* t0ere are no 5lea)e) re5resentations <0i'0 .r Cor)ner ma)e to .r
4nno'ent to 5ersua)e 0im to in;est in +lo0a #o$al <0i'0 4 0a;e %oun) to be %alse an)
9no<n b$ .r Cor)ner to be %alse at t0e time8 4t %ollo<s t0at .r 4nno'ent?s 'laim
a1ainst .r Cor)ner in )e'eit relatin1 to 0is 5ur'0ase o% no8 22 +lo0a #o$al must %ail8
70"8 9egligent mis:statement8 Ne1li1ent mis/statement nee)s to be 'onsi)ere) in res5e't
o% t0ose re5resentations <0i'0 4 0a;e %oun) <ere ma)e b$ .r Cor)ner* <0i'0 <ere
5lea)e) a1ainst 0im* an) <0i'0 <ere %alse* but <0i'0 4 0a;e not been satis%ie) <ere
9no<n b$ .r Cor)ner to be %alse at t0e time 0e ma)e t0em8 T0ose re5resentations
<ere:
(a) t0at #.= 0a) title to t0e site at +lo0a #o$al* namel$ t0e %irst 5art o% t0e
se'on) im5lie) re5resentation (<0i'0 <as <0at .r Cor)ner in e%%e't tol) (ir
=eo%%* .r Ho5le$ an) .r Bar9le$)*
(b) t0at #.= <as able to sell t0e a5artments at +lo0a #o$al* namel$ t0e
se'on) 5art o% t0e se'on) im5lie) re5resentation (<0i'0 <as <0at .r Cor)ner in
e%%e't tol) (ir =eo%%* .r Ho5le$* .r Bar9le$ an) .r Cen$on)* an)
(') t0at .r Hone nee)e) to raise t0e mone$ to bu$ out a 5artner (<0i'0 <as
<0at 0e tol) .r 4nno'ent an) .r Bar9le$)8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
T0ese re5resentations all relate) to t0e 'laimants? in;estments in +lo0a #o$al8 T0ere
are ot0er 5lea)e) re5resentations ma)e b$ .r Cor)ner <0i'0 <ere %alse* but <0i'0
<ere not 9no<n b$ 0im to be %alse <0en 0e ma)e t0em8 Ho<e;er* t0ese <ere some
o% t0e im5lie) re5resentations* an) t0e 5ersons to <0om t0e$ <ere ma)e (as <ell as
.r Cor)ner 0imsel%) )i) not realise t0e e%%e't o% t0em8 4 0a;e t0ere%ore 5ut t0em to
one si)e8
7098 To t0e eDtent t0at t0ese re5resentations <ere ma)e to (ir =eo%%* .r Ho5le$* .r
Bar9le$ an) .r Cen$on* t0e Auestion <0et0er t0e$ <ere ma)e ne1li1entl$ )oes not
nee) to be a))resse)* be'ause t0e 'laims %or ne1li1ent mis/statement are alternati;e to
t0e 'laims %or )e'eit8 T0e same a55lies to .r #oberts? 'laim %or ne1li1ent mis/
statement8 T0at lea;es t0e re5resentation ma)e to .r 4nno'ent t0at .r Hone nee)e)
t0e mone$ to bu$ out a 5artner* <0i'0 is t0e onl$ re5resentation ma)e to .r 4nno'ent
<0i'0 4 0a;e %oun) to be %alse8 Here too it is unne'essar$ %or me to )e'i)e <0et0er
.r Cor)ner ma)e t0e re5resentation ne1li1entl$* be'ause e;en i% 0e )i)* 4 0a;e not
been 5ersua)e) t0at t0is re5resentation on its o<n 'oul) be sai) to 0a;e 'ontribute)
substantiall$ to .r 4nno'ent?s )e'ision to in;est in +lo0a #o$al8 4t %ollo<s t0at .r
4nno'ent?s 'laim a1ainst .r Cor)ner %or ne1li1ent mis/statement must %ail8
7108 T0ere are in a))ition t<o ot0er 5lea)e) re5resentations ma)e b$ .r Cor)ner to (ir
=eo%% <0i'0 <ere %alse but <0i'0 <ere not 9no<n b$ .r Cor)ner to be %alse <0en 0e
ma)e t0em8 T0e %irst relate) to (ir =eo%%?s 5romotional a1reement8 T0at <as t0e
re5resentation <0i'0 .r Cor)ner ma)e to (ir =eo%% t0at one o% #.=?s )e;elo5ments
<as +lo0a #o$al* <0i'0 'arrie) <it0 it t0e se'on) im5lie) re5resentation8 T0e
se'on) im5lie) re5resentation ma$ 0a;e 'ontribute) to <0$ (ir =eo%% <ante) t0e
a5artment <0i'0 <as to be assi1ne) to 0im un)er t0e 5romotional a1reement to be at
+lo0a #o$al* but 4 )o not belie;e t0at it 'ontribute) substantiall$ to 0is )e'ision to
enter t0e 5romotional a1reement <it0 #.=8
7118 T0e same is true o% t0e ot0er 5lea)e) re5resentation ma)e b$ .r Cor)ner to (ir =eo%%
<0i'0 <as %alse but <0i'0 0e )i) not 9no< <as %alse <0en 0e ma)e it8 T0at
re5resentation relate) to (ir =eo%%?s loan to .r Hone* an) <as t0e re5resentation t0at
an entit$ 'ontrolle) b$ .r Hone <as rea)$* <illin1 an) able to 'arr$ out t0e
)e;elo5ment at +lo0a #o$al8 T0at re5resentation <as ma)e in 'onne'tion <it0 t0e
a))itional se'urit$ %or t0e loan <0i'0 .r Hone 0a) o%%ere) to .r Ho5le$8 But <0at is
'riti'al 0ere is t0at (ir =eo%% ultimatel$ )e'i)e) to len) .r Hone t0e B750*000
<it0out ta9in1 t0at a))itional se'urit$8 He re1ar)e) t0e pagar/ '0eAue as su%%i'ient
se'urit$ %or 0is loan8 4n ot0er <or)s* alt0ou10 .r Cor)ner <as sa$in1 t0an an entit$
'ontrolle) b$ .r Hone <as rea)$* <illin1 an) able to 'arr$ out t0e )e;elo5ment at
+lo0a #o$al* an) alt0ou10 t0at <oul) 0a;e 1i;en (ir =eo%% 1reater 'on%i)en'e t0at
0is earlier in;estments in +lo0a #o$al 0a) not been mis5la'e)* t0at 0a) not
'ontribute) G let alone 'ontribute) substantiall$ G to 0is )e'ision to len) to .r Hone8
7128 4n t0e 'ir'umstan'es* it is unne'essar$ %or me to )e'i)e <0et0er .r Cor)ner o<e) a
)ut$ o% 'are to (ir =eo%% o;er t0e a''ura'$ o% <0at 0e tol) 0im* be'ause e;en i% 0e
)i)* an) e;en i% 0e inten)e) (ir =eo%% to a't on <0at 0e tol) 0im about +lo0a #o$al
bein1 one o% #.=?s )e;elo5ments <0i'0 an entit$ 'ontrolle) b$ .r Hone <as rea)$*
<illin1 an) able to )e;elo5* t0at re5resentation G e;en <0en 'ou5le) <it0 .r
Cor)ner?s re5resentation t0at 0e <as len)in1 to .r Hone G )i) not 'ontribute
substantiall$ to (ir =eo%%?s )e'ision to len) mone$ to .r Hone 0imsel%8 4t %ollo<s
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
t0at (ir =eo%%?s 'laim a1ainst .r Cor)ner %or ne1li1ent mis/statement relatin1 to 0is
5romotional a1reement an) t0e loan o% B750*000 to .r Hone must %ail8
7178 Breach of trust8 T0e 'laimants? 'laim %or brea'0 o% trust is t0at .r Cor)ner 0el) t0e
5ro'ee)s o% t0e '0eAues <0i'0 t0e 'laimants 0an)e) o;er or sent to 0im %or t0e
5ur'0ase o% t0eir a5artments at +lo0a #o$al on 'onstru'ti;e trusts* be'ause .r
Cor)ner <as a<are t0at t0ose '0eAues 0a) been 5ro;i)e) un)er a mista9e o% %a't
in)u'e) b$ 0is )e'eit8 4n brea'0 o% t0ose 'onstru'ti;e trusts* 0e t0en 'ause) t0e
'0eAues to be 5ai) into #.=?s a''ount at Ban'o )e (aba)ell* or in t0e 'ase o% .r
4nno'ent?s '0eAue in %a;our o% =ros;enor* 0e 'ause) t0e '0eAue to be 5ai) into
=ros;enor?s a''ount at Ban'o (antan)er8 .r CnoD a'9no<le)1e) t0at t0e la< in t0is
area is not as strai10t%or<ar) as it mi10t be* but 0e 'onten)e) t0at t0e 'laimants?
anal$sis <as su55orte) b$ or) Bro<ne/Wil9inson?s s5ee'0 in ;estdeutche
<andesbank Giro!entrale Islington <ondon Borough Council [1992] +C 229 at 55
-1>C/-15C8
71>8 T0is is not a )ebate to <0i'0 4 nee) to ma9e m$ o<n 'ontribution8 4t is
a'9no<le)1e) t0at t0e 'laims %or )e'eit an) brea'0 o% trust run in tan)em* in t0e sense
t0at t0e 'laims %or brea'0 o% trust are )e5en)ent on t0e su''ess o% t0e 'laims %or
)e'eit8 T0at is not to sa$ t0at t0ere are no )i%%eren'es bet<een t0e t<o 'laims8 .r
CnoD alerte) me to one on t0e issue o% )ama1es8 W0en it 'omes to assessin1 t0e
Auantum o% t0e losses o% t0ose 'laimants <0ose 'laims %or )e'eit 0a;e been
su''ess%ul* t0e 'ourt <ill 0a;e to )e'i)e <0et0er t0e$ nee) to 1i;e 're)it %or t0e ;alue
o% t0e a5artments t0e$ bou10t8 Ho<e;er* on t0e 'laimants? 'laims %or brea'0 o% trust*
it is sai) t0at t0is )oes not nee) to be a))resse)* be'ause .r Cor)ner <as liable to
a''ount to t0e 'laimants %or t0e 5ro'ee)s o% t0eir '0eAues re1ar)less o% an$t0in1 else8
+1ain* t0at )oes not nee) to be a))resse)* be'ause as <e s0all see 4 0a;e 'on'lu)e)
t0at alt0ou10 t0e 'laimants are obli1e) to 1i;e 're)it %or t0e ;alue o% t0eir a5artments*
t0eir a5artments are 'om5letel$ ;alueless to t0em8
7158 Breach of fiduciar( dut(8 T0e 'laims o% .r 4nno'ent* .r #oberts* .r Bar9le$ an)
.r Cen$on %or brea'0 o% %i)u'iar$ )ut$ are t0at t0eir %rien)s0i5 <it0 .r Cor)ner
resulte) in t0em trustin1 0im to loo9 a%ter t0eir interests in 5re%eren'e to 0is o<n or
an$one else?s* an) not )ealin1 <it0 0im on a usual arms/len1t0 'ommer'ial basis8
T0at is sai) to 0a;e resulte) in t0e 'reation o% a %i)u'iar$ relations0i5 bet<een t0em
an) .r Cor)ner8 (u'0 a relations0i5 is also sai) to 0a;e arisen bet<een (ir =eo%%
an) .r Ho5le$ on t0e one 0an) an) .r Cor)ner on t0e ot0er* e;en t0ou10 t0e$ <ere
not %rien)s o% .r Cor)ner* as a result o% 0is 5romise t0at 0e <oul) arran1e %or la<$ers
to )eal <it0 t0e le1al <or9* or <or)s to t0at e%%e't8
7128 T0e 'laimants? 'ase is t0at in brea'0 o% .r Cor)ner?s %i)u'iar$ )ut$ <0i'0 arose as a
result o% 0is %i)u'iar$ relations0i5 <it0 t0e 'laimants* .r Cor)ner 5re%erre) 0is o<n
interests (an) at times .r Hone?s) to t0e interests o% t0e 'laimants b$ (a) %ailin1 to
in%orm t0em o% t0e ris9s t0e$ <ere ta9in1 <0i'0 0e must 0a;e 9no<n about* (b)
ma9in1 t0e ;arious misre5resentations <0i'0 0e ma)e to t0em* (') %ailin1 to )is'lose
to t0em t0at 0e 0a) bou10t no8 52 +lo0a #o$al in &une 2007 %or L27-*000 <0i'0 <as
L21*000 less t0an t0e )is'ounte) 5ri'e o% L29"*000 <0i'0 t0e 'laimants 5ai) %or t0eir
a5artments (an) L127*000 less t0an t0e H;er$ si1ni%i'antl$I )is'ounte) 5ri'e <0i'0
.r Cen$on 5ai) %or 0is)* an) ()) %ailin1 to )is'lose to t0em t0at a substantial
5ro5ortion o% <0at t0e$ <ere 5a$in1 %or t0eir a5artments <oul) be 5ai) to 0im b$
<a$ o% 'ommission8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
71-8 .r CnoD a'9no<le)1e) t0at alt0ou10 t0e 'laims %or brea'0 o% %i)u'iar$ )ut$ to some
eDtent tra;erse )i%%erent 1roun) %rom t0at o% )e'eit* t0e 'laimants )i) not nee) t0e
'ourt to rule on t0e 'laims %or brea'0 o% %i)u'iar$ )ut$ o% t0ose 'laimants <0ose
'laims %or )e'eit <ere su''ess%ul8 4t %ollo<s t0at it is onl$ .r 4nno'ent?s 'laim %or
brea'0 o% %i)u'iar$ )ut$ <0i'0 0as to be a))resse)8
71"8 T0e 5rin'i5les to be a55lie) in )eterminin1 <0et0er t0e relations0i5 bet<een .r
4nno'ent an) .r Cor)ner <as one <0i'0 eAuit$ re'o1nises as a %i)u'iar$ relations0i5
are elusi;e* but a 0el5%ul anal$sis o% t0e 'urrent state o% t0e la< a55ears in (nell?s
EAuit$* 71st e)* 5aras -/0- an) -/0":
HT0e 'ate1ories o% %i)u'iar$ relations0i5s are not 'lose)8
3i)u'iar$ )uties ma$ be o<e) )es5ite t0e %a't t0at t0e
relations0i5 )oes not %all <it0in one o% t0e settle) 'ate1ories o%
%i)u'iar$ relations0i5s* 5ro;i)e) t0e 'ir'umstan'es :usti%$ t0e
im5osition o% su'0 )uties8 4)enti%$in1 t0e 9in) o%
'ir'umstan'es t0at :usti%$ t0e im5osition o% %i)u'iar$ )uties is
ma)e )i%%i'ult b$ t0e %a't t0at t0e 'ourts 0a;e 'onsistentl$
)e'line) to 5ro;i)e a )e%inition* or e;en a uni%orm )es'ri5tion*
o% a %i)u'iar$ relations0i5* 5re%errin1 to 5reser;e %leDibilit$ in
t0e 'on'e5t8 Numerous a'a)emi' 'ommentators 0a;e o%%ere)
su11estions* but none 0as 1arnere) su55ort8 T0e S%i)u'iar$
relations0i5 is a 'on'e5t in sear'0 o% a 5rin'i5le? (.ason*
ST0emes an) 6ros5e'ts? in 3inn (e))* 4ssa(s in 4%uit( (19"5)
2>2 at 5 2>2)?8
T0ere is* 0o<e;er* 1ro<in1 :u)i'ial su55ort %or t0e ;ie< t0at Sa
%i)u'iar$ is someone <0o 0as un)erta9en to a't %or or on be0al%
o% anot0er in a 5arti'ular matter in 'ir'umstan'es <0i'0 1i;e
rise to a relations0i5 o% trust an) 'on%i)en'e? (Bristol = ;est
Building &ociet( Mothe' [199"] C0 1 at 5 1")8 ST0e 'on'e5t
en'a5tures a situation <0ere one 5erson is in a relations0i5 <it0
anot0er <0i'0 1i;es rise to a le1itimate eD5e'tation* <0i'0
eAuit$ <ill re'o1nise* t0at t0e %i)u'iar$ <ill not utilise 0is or
0er 5osition in su'0 a <a$ <0i'0 is a);erse to t0e interests o%
t0e 5rin'i5al? (Arklo' Inestments <td Maclean [2000] 1
W# 59> at 5 59"=)8I
7198 .r Cor)ner a'9no<le)1e) t0at 0is %rien)s0i5 <it0 .r 4nno'ent meant t0at .r
4nno'ent <as entitle) to 5la'e 0is trust in 0im <0en 0e re'ommen)e) in;estin1 in
+lo0a #o$al8 Mou are more li9el$ to ta9e t0in1s on trust %rom $our %rien)s t0an $ou
are %rom ot0er 5eo5le* be'ause $ou are entitle) to assume t0at $our %rien)s are a'tin1
in $our best interests8 .r Cor)ner a''e5te) t0at .r 4nno'ent 'oul) also eD5e't 0im
to be o5en an) 'an)i) <it0 t0em8 T0at meant )is'losin1 to 0im e;er$t0in1 <0i'0 0e
nee)e) to 9no< in or)er to ma9e a :u)1ment about in;estin1 in +lo0a #o$al*
in'lu)in1 an$t0in1 <0i'0 <as not Auite ri10t8
7208 T0ese are no more t0an t0e attributes o% %rien)s0i5* o% 'ourse* an) $ou 'annot sa$ t0at
%rien)s are automaticall( in a %i)u'iar$ relations0i5 <it0 ea'0 ot0er8 T0at <as <0$
.r &e%%eris relie) on Chaudhr( *rabhakar [19""] 7 +ll E# -1" in <0i'0 t0e
5lainti%% sue) a %rien) o% 0ers %or <ron1l$ a);isin1 0er t0at a 'ar s0e <as t0in9in1 o%
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
bu$in1 <as in 1oo) 'on)ition8 +ll t0ree members o% t0e Court o% +55eal <ere
'on'erne) about a 'on'ession ma)e b$ 'ounsel %or t0e 5lainti%%?s %rien) t0at a )ut$ o%
'are 0a) arisen8 (tuart/(mit0 & sai) at 5 -21:/-22a:
HW0en 'onsi)erin1 t0e Auestion o% <0et0er a )ut$ o% 'are
arises* t0e relations0i5 bet<een t0e 5arties is material8 4% t0e$
are %rien)s* t0e true ;ie< ma$ be t0at t0e a);i'e or
re5resentation is ma)e on a 5urel$ so'ial o''asion an) t0e
'ir'umstan'es s0o< t0at t0ere 0as not been a ;oluntar$
assum5tion o% res5onsibilit$8I
(to'9er & sai) at 5 -271:
HN in m$ ;ie<* in t0e absen'e o% ot0er %a'tors 1i;in1 rise to
su'0 a )ut$* t0e 1i;in1 o% a);i'e sou10t in t0e 'onteDt o%
%amil$* )omesti' or so'ial relations0i5s <ill not in itsel% 1i;e
rise to an$ )ut$ in res5e't o% su'0 a);i'e8I
+n) .a$ & sai) at 5 -25b/':
HN 4 %or m$ 5art res5e't%ull$ )oubt <0et0er 'ounsel?s
'on'ession in t0e instant 'ase <as ri10tl$ ma)e in la<8 4 )o
not %in) t0e 'on'lusion t0at one must im5ose on a %amil$ %rien)
loo9in1 out %or a %irst 'ar %or a 1irl o% 22 a 3onoghue
&teenson )ut$ o% 'are in an) about 0is Auest* en%or'eable <it0
all t0e %ormalities o% t0e la< o% tort* entirel$ attra'ti;e8I
7218 Ho<e;er* Chaudhr( <as 'on'erne) <it0 t0e )ut$ o% 'are in t0e la< o% ne1li1en'e* not
t0e 'ir'umstan'es in <0i'0 %rien)s 'an be sai) to be in a %i)u'iar$ relations0i5* an)
.r Cor)ner?s attem5ts to 5ersua)e .r 4nno'ent to in;est in +lo0a #o$al <ere ;er$
)i%%erent %rom 1i;in1 a %rien) in%ormal a);i'e about t0e 'on)ition o% a 'ar* e;en i%
$our 9no<le)1e o% 'ars is mu'0 1reater t0an t0at o% $our %rien)8 W0at is sai) to be
si1ni%i'ant 0ere is t0at t0e transa'tion <0i'0 .r Cor)ner <as re'ommen)in1 .r
4nno'ent to enter in;ol;e) t0e 5a$ment o% a lar1e sum o% mone$ <it0out le1al a);i'e*
<it0out t0e ma9in1 o% an$ in;esti1ations as to title* an) <it0out an$ )is'ernable
se'urit$8 T0at is true* an) 4 sus5e't t0at .r 4nno'ent <oul) 0a;e been more
'ir'ums5e't about in;estin1 in +lo0a #o$al 0a) 0e been a55roa'0e) b$ someone <0o
<as not a %rien) o% 0is8 But t0e 'riti'al 5oint* 4 t0in9* is t0at alt0ou10 0e truste) .r
Cor)ner not to 5ull a %ast one o;er 0im* 0e still 9ne< t0at t0ere <as somet0in1 in it
%or .r Cor)ner8
7228 4 sa$ t0at %or t0ese reasons8 .r 4nno'ent 9ne< t0at .r Cor)ner <as <or9in1 in
(5ain an) t0at sellin1 5ro5erties t0ere <as 0is business8 +%ter all* <0en 0e <ent to
(5ain* .r Cor)ner too9 0im to one o% #.=?s o%%i'es* an) .r 4nno'ent sa< t0at .r
Cor)ner 0a) 0is o<n )es9 t0ere8 He 9ne< t0at t0ose <0o .r Cor)ner <as <or9in1
%or <ere 5re5are) to 1o to some len1t0s to 5ersua)e 5otential 5ur'0asers to in;est in
t0eir 5ro5erties8 4t <ill be re'alle) t0at .r Cor)ner tol) .r 4nno'ent t0at t0e 5eo5le
0e <as <or9in1 %or <oul) 5a$ %or .r 4nno'ent?s a''ommo)ation in (5ain: all .r
4nno'ent 0a) to )o <as to 5a$ %or 0is %li10t8 Ha) .r 4nno'ent t0ou10t about it* 0e
<oul)* 4 am sure* 0a;e realise) t0at in some <a$ .r Cor)ner <oul) be %inan'iall$
re<ar)e) %or ea'0 o% t0e a5artments 0e <as instrumental in sellin1* e;en i% 0e )i) not
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
9no< <0at .r Cor)ner?s 'ommission <oul) be8 (o alt0ou10 0e <oul) 0a;e t0ou10t
t0at .r Cor)ner <oul) not sell 0im a 5ro5ert$ <0i'0 .r Cor)ner )i) not t0in9 <as a
reasonable 5ur'0ase* t0e %a't is t0at (a) 0e s0oul) 0a;e realise) t0at .r Cor)ner?s
moti;es <ere not entirel$ altruisti'* an) (b) in an$ e;ent 0e ma)e 0is o<n :u)1ment
about t0e <is)om o% t0e transa'tion* a)mitte)l$ 1oin1 to some eDtent on <0at .r
Cor)ner tol) 0im* but <0en 0e s0oul) 0a;e re'o1nise) t0at .r Cor)ner <oul) 0a;e
0a) 0is o<n interests to ser;e8 4n t0ese 'ir'umstan'es it is not 5ossible to sa$ t0at .r
Cor)ner <as in t0e 5osition o% a %i)u'iar$ to .r 4nno'ent* an) .r 4nno'ent?s 'laim
a1ainst .r Cor)ner %or brea'0 o% %i)u'iar$ )ut$ must be )ismisse)8
7278 Conspirac(8 T0e 'laimants? 'ase on 'ons5ira'$ is 5ut in t<o alternati;e <a$s8 T0e
%irst is t0at .r Cor)ner a1ree) <it0 .r Hone to raise %un)s %rom t0e 'laimants b$
unla<%ul means8 T0e unla<%ul means are sai) to 0a;e been t0e ;arious
re5resentations <0i'0 .r Cor)ner <as to ma9e to t0e 'laimants to in)u'e t0em to 5art
<it0 t0eir mone$ an) <0i'0 <ere %alse an) 9no<n b$ .r Cor)ner to be %alse at t0e
time 0e ma)e t0em8 .r CnoD 'on%irme) t0at t0is %orm o% 'ons5ira'$ a))e) not0in1
to t0e 'laims %or )e'eit* so t0at i% t0e 'laims %or )e'eit su''ee)e)* it <oul) be
unne'essar$ %or t0is %orm o% 'ons5ira'$ to be a))resse)* an) i% t0e 'laims %or )e'eit
%aile)* t0e 'laims %or t0is %orm o% 'ons5ira'$ 0a) to %ail as <ell8
72>8 T0e alternati;e <a$ in <0i'0 t0e 'laimants? 'ase in 'ons5ira'$ is 'ast is t0at .r
Cor)ner a1ree) <it0 .r Hone to )o an a't <0i'0 <oul) be unla<%ul un)er (5anis0
la<* namel$ to raise %un)s %or t0e 'onstru'tion o% a )e;elo5ment <it0out arran1in1 %or
a 1uarantee in t0e %orm o% an insuran'e 5oli'$ or a ban9 1uarantee to be in 5la'e* an)
<it0out 5la'in1 t0e %un)s into a ban9 a''ount se5arate %rom t0eir o<n %un)s8 +
'ons5ira'$ o% t0is 9in) )i) not* o% 'ourse* reAuire )e'eit%ul or ne1li1ent
misre5resentations to 0a;e been ma)e to t0e 'laimants* but .r CnoD a'9no<le)1e)
t0at t0e 'laimants <oul) ne;ert0eless 0a;e to 5ro;e t0at re5resentations <ere ma)e
<0i'0 in)u'e) t0e 'laimants to in;est in +lo0a #o$al* be'ause it <as t0e
re5resentations <0i'0 'onstitute) t0e 'ausal lin9 bet<een <0at <as sai) to be t0e
ori1inal a1reement <0i'0 'onstitute) t0e 'ons5ira'$ an) t0e 5artin1 b$ t0e 'laimants
<it0 t0eir mone$8
7258 T0is %orm o% 'ons5ira'$ raises a 5oint <0i'0 t0e 'ourts 0a;e not 0a) to 1ra55le <it0
be%ore G namel$ <0et0er t0e tort o% 'ons5ira'$ b$ unla<%ul means is 'ommitte) <0en
t0e unla<%ul a't <0i'0 t0e 'ons5irators a1ree) to )o <as an a't <0i'0 <as unla<%ul
un)er %orei1n as o55ose) to )omesti' la<8 Ho<e;er* .r CnoD ele'te) not to a);an'e
an$ submissions on t0at issue be'ause 0e a'9no<le)1e) t0at t0is %orm o% 'ons5ira'$
li9e<ise a))e) not0in1 to t0e 'laims o% )e'eit an) ne1li1ent mis/statement* sin'e it
reAuire) t0e 'laimants to 5ro;e t0at .r Cor)ner 0a) ma)e re5resentations to t0em
<0i'0 in)u'e) t0em to in;est in +lo0a #o$al8 (o i% t0e 'laims %or )e'eit (or
alternati;el$ %or ne1li1ent mis/statement) su''ee)e)* it <oul) not be ne'essar$ %or
t0is %orm o% 'ons5ira'$ to be a))resse)* an) i% t0e 'laims %or )e'eit an) ne1li1ent mis/
statement %aile)* t0e 'laims %or t0is %orm o% 'ons5ira'$ 0a) to %ail be'ause t0ere
<oul) not 0a;e been t0e ne'essar$ lin9 bet<een <0at <as sai) to be t0e ori1inal
a1reement <0i'0 'onstitute) t0e 'ons5ira'$ an) t0e 'laimants? )e'isions to in;est in
+lo0a #o$al8
7228 *artnership8 T0e 'laimants? 'ase is t0at t0e s5e'ial )eal relatin1 to t0e 10 a5artments
at +lo0a #o$al <as an arran1ement <0i'0 .r Hone an) .r Cor)ner 0a) on t0e si)e8
T0e true anal$sis o% t0eir relations0i5 in 'onne'tion <it0 t0is )eal <as one o%
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
5artners0i58 (o e;en i% su'0 re5resentations as .r Cor)ner is %oun) to 0a;e ma)e*
t0ou10 %alse* <ere ma)e neit0er )e'eit%ull$ nor ne1li1entl$* .r Cor)ner <as
ne;ert0eless liable %or t0ose re5resentations i% (a) 0e ma)e t0em in %urt0eran'e o% t0e
5artners0i5?s ob:e'ti;es an) (b) .r Hone 9ne< o% t0eir %alsit$ at t0e time t0e$ <ere
ma)e8
72-8 T0e basis on <0i'0 it is sai) t0at t0e relations0i5 bet<een .r Hone an) .r Cor)ner
<as one o% 5artners0i5 is t0at <0en it 'ame to t0e sale o% t0e a5artments at +lo0a
#o$al .r Cor)ner (<0et0er on 0is o<n or as a )ire'tor o% .6) <as not <or9in1 %or
#.= or .r Hone or an$ ot0er entit$ 'ontrolle) b$ 0im as an a1ent on 'ommission8
T0e 'laimants? 'ase is t0at .r Hone an) .r Cor)ner <ere in e%%e't in business
to1et0er* t0e ob:e'ti;e o% t0at business bein1 to enable t0e t<o o% t0em to raise %un)s
%or t0eir o<n use %rom t0e sale o% t0e a5artments <0i'0 a'tuall$ belon1e) to +@ul*
t0ose %un)s to be )i;i)e) bet<een t0em* so t0at .r Hone <oul) re'ei;e about -0K
an) .r Cor)ner about 70K8 T0is anal$sis o% t0eir relations0i5 is sai) to be borne out
b$
(i) t0e nature o% t0e s5e'ial )eal itsel%* <0i'0 in;ol;e) .r Cor)ner 1ettin1 (a) a
rate o% H'ommissionI %ar 1reater t0an <oul) 0a;e been a55ro5riate i% 0e 0a)
sim5l$ been a salesman bein1 5ai) 'ommission an) (b) t0e bene%it o% %lu'tuations
in t0e eD'0an1e rate bet<een euros an) sterlin1*
(ii) t0eir a<areness t0at t0e site <0i'0 5ros5e'ti;e in;estors <ere tol) t0e
a5artments <ere to be built on <as o<ne) b$ +@ul* e;en t0ou10 t0e 'laimants
0a) to ma9e t0eir '0eAues 5a$able to entities ot0er t0an +@ul (=ros;enor in t0e
'ase o% .r 4nno'ent an) #.= in t0e 'ase o% t0e ot0er 'laimants)* an)
(iii) t0e attem5ts t0e$ ma)e to 9ee5 t0e s5e'ial )eal se'ret* namel$ t0e absen'e
o% an$ 5a5er<or9 relatin1 to it* t0e ;irtual absen'e o% an$ in;oi'es %or t0e
H'ommissionI* an) t0e 5a$ment o% t0e H'ommissionI to .r Cor)ner rat0er t0an
.68
72"8 T0e )i%%i'ult$ <it0 t0is anal$sis is t0at as 4 0a;e 5re;iousl$ sai) 4 )o not belie;e t0at
.r Hone <as ta9in1 .r Cor)ner into 0is 'on%i)en'e8 .r Cor)ner <oul) not 0a;e
9no<n <0at .r Hone?s true 5lans <ere %or t0e site <0i'0 .r Hone 0a) earmar9e) as
t0e site %or +lo0a #o$al8 Nor )i) 0e 9no< t0at t0e entit$ <0i'0 o<ne) t0e site <as
+@ul8 JnAuestionabl$ t0ere 'ame a time <0en .r Hone 0a) no intention o%
)e;elo5in1 t0e site 0imsel%8 T0at <as <0$ +@ul sol) t0e site to ,u:a8 4n)ee)* it ma$
be G t0ou10 4 'annot ma9e an$ %in)in1s about t0is one <a$ or t0e ot0er G t0at .r
Hone <as ne;er inten)in1 to )e;elo5 t0e site 0imsel%8 Ho<e;er* .r Cor)ner <as not
to 9no< t0at* an) i% 0e e;er )i) realise it* it <as not until ;er$ mu'0 later8
7298 3or t0e reasons 1i;en at [197]/[202] abo;e* 4 0a;e little )oubt t0at bot0 .r Hone an)
.r Cor)ner <ante) to 9ee5 t0e )eal t0e$ 0a) rea'0e) o;er t0e sale o% a5artments at
+lo0a #o$al se'ret8 T0at must 0a;e been be'ause t0e$ <ante) to 9ee5 t0e amount o%
.r Cor)ner?s 'ommission 'on%i)ential8 T0at be1s t0e Auestion <0$ .r Hone <as
5re5are) to 5a$ .r Cor)ner so mu'0 'ommission* an) <0at .r Cor)ner t0ou10t t0e
reason %or t0at <as* i% t0is <as not a s'am <0i'0 .r Cor)ner 0a) been a 5art$ to all
alon18 4 am not able to ma9e an$ %in)in1s one <a$ or t0e ot0er about <0at .r
Hone?s moti;ation <as8 4t ma$ be t0at 0e 0a) no intention e;en t0en o% )e;elo5in1
t0e site 0imsel%8 Fn t0e ot0er 0an)* it ma$ be t0at 0e <as at t0at sta1e inten)in1 to
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
)e;elo5 t0e site 0imsel%* but t0at 0e 0a) )ebts o% 0is o<n <0i'0 0e nee)e) to 5a$
ur1entl$ or t0at 0e 0a) to 1et t0e 5ur'0ase 5ri'e u5 %ront to %inan'e t0e 'onstru'tion o%
t0e )e;elo5ment8 He 9ne< t0at no/one <oul) be 5re5are) to 5a$ t0e <0ole o% t0e
5ur'0ase 5ri'e u5 %ront unless t0e$ <ere 1ettin1 an eD'e5tional )eal* <0i'0 <as <0$
0e <as 5re5are) to o%%er t0e a5artments at a 5ri'e so mu'0 belo< t0e list 5ri'e8 +n)
in or)er to %orestall .r Cor)ner as9in1 0im a<9<ar) Auestions about <0$ t0e list
5ri'e <as bein1 )e5arte) %rom b$ su'0 a lar1e amount an) <0$ eD'e5tionall$ t0e
<0ole o% t0e in;estment 0a) to be 5ai) be%ore 'onstru'tion 0a) e;en be1un* .r
Cor)ner 0a) to be re<ar)e) so si1ni%i'antl$ t0at all 0e 'oul) see <as t0e amount o%
'ommission 0e <oul) be ma9in18 Ha;in1 seen .r Cor)ner o;er man$ )a$s in t0e
<itness boD* 4 t0in9 0e <as :ust t0e sort o% man <0o <oul) sei@e t0e o55ortunit$ o%
ma9in1 a 1reat )eal o% mone$ <it0out t0in9in1 <0at ma$ 0a;e lain be0in) t0e )eal
<0i'0 .r Hone <as 5uttin1 to 0im8
7708 +s 4 state) at [279] abo;e* t0e 5robabilities are t0at t0e reason .r Hone 1a;e .r
Cor)ner %or nee)in1 to raise %un)s Aui'9l$ <as in)ee) be'ause 0e <ante) to bu$ out
0is 5artner in #.=8 But %rom .r Cor)ner?s 5oint o% ;ie<* t0e stron1 5robabilit$ is
t0at t0e )eal 0a) to be 9e5t se'ret be'ause 0e <as not 1oin1 to be 5uttin1 t0e
'ommission on t0e s5e'ial )eal t0rou10 .68 He <as 1oin1 to ta9e t0e 'ommission
0imsel% an) not )e'lare it %or taD 5ur5oses8 T0at <as <0$ t0ere <as not0in1 in
<ritin1 about it* <0$ no in;oi'es %or t0e 'ommission <ere submitte) b$ .6 (sa;e
%or in;oi'e #.JC02 %or L21*200)* <0$ t0e 'ommission <as not 5ai) to .6* an)
<0$ no taD <as in %a't 5ai) on t0e 'ommission8
7718 4t %ollo<s t0at su'0 re5resentations as .r Cor)ner ma)e as <ere %alse <ere not ma)e
in %urt0eran'e o% t0e ob:e'ti;es o% an$ 5artners0i5 bet<een .r Hone an) .r Cor)ner
be'ause t0ere <as no su'0 5artners0i5 bet<een t0em* an) t0is as5e't o% t0e 'laimants?
'laim a1ainst .r Cor)ner must %ail8
7728 Mr 2en(ons tracing claim against Mr and Mrs Cordner8 3or t0e reasons 1i;en at
[1"1]/[191] abo;e <0en )ealin1 <it0 .r Cen$on?s tra'in1 'laim a1ainst .r an) .rs
Cor)ner* 4 'on'lu)e) t0at .r Cor)ner?s 'laim t0at .r Hone lent 0im t0e 5ro'ee)s o%
.r Cen$on?s '0eAue %or B251*->" <as %alse8 .r Cor)ner t0ere%ore 9ne< t0at 0e <as
not entitle) to use t0e 5ro'ee)s o% t0at '0eAue to<ar)s t0e 5ur'0ase o% t0e ,erin1s8
.r &e%%eris realisti'all$ a'9no<le)1e) t0at in t0ose 'ir'umstan'es .r Cen$on?s
tra'in1 'laim a1ainst .r an) .rs Cor)ner 0a) to su''ee)8 Ho<e;er* a number o%
ot0er issues arise on t0e tra'in1 'laim8 T0e$ in'lu)e <0et0er .r Cen$on?s %un)s 'an
be tra'e) into (a) .r an) .rs Cor)ner?s interest in a 5ro5ert$ in Hat%iel) o<ne) b$
.rs Cor)ner?s mot0er* or (b) .r Cor)ner?s interest in t0e 0ouse in <0i'0 0e an) .rs
Cor)ner are no< li;in1* so t0at .r Cen$on 'an 1et t0e bene%it o% t0e in'rease in ;alue
o% t0e ,erin1s bet<een <0en it <as bou10t an) <0en it <as sol)8 T0e$ also in'lu)e
0o< t0e tra'in1 'laim is a%%e'te) b$ <0at .rs Cor)ner 'laims <as t0e 0u1e amount o%
<or9 <0i'0 s0e* .r Cor)ner an) .r Cor)ner?s 5arents )i) to im5ro;e t0e ,erin1s
an) t0eir 5resent 0ome* t0e 0u1e amount <0i'0 .r Cor)ner?s %at0er 5ai) to<ar)s
im5ro;in1 t0em* an) t0e sums <0i'0 .r Cor)ner )re< %rom t0e 5ro'ee)s o% sale o%
t0e ,erin1s to in;est in 0is business8 Ho<e;er* it <as a1ree) t0at t0ese issues )o not
relate to t0e establis0ment o% .r Cen$on?s tra'in1 'laim* an) t0at it <as ina55ro5riate
%or t0ose issues to be a))resse) in t0e 'ourse o% t0e 'urrent trial8
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
I. 8ther issues
7778 The claimants contributor( negligence8 B$ a late amen)ment to t0e ,e%en'e* it <as
ar1ue) on .r Cor)ner?s be0al% t0at t0e 'laimants? )ama1es s0oul) be re)u'e) b$ t0eir
'ontributor$ ne1li1en'e in H[%]ailin1 to ta9e an$* or an$ su%%i'ient ste5s* to 5rote't
t0eir o<n interestU or ma9e an$ or an$ su%%i'ient enAuiries* to enable [t0em] to 5rote't
t0eir o<n interest* <0en enterin1 t0e transa'tions no< 'om5laine) o%8I No< t0at
t0ose o% t0e 'laimants <0o 0a;e establis0e) liabilit$ on .r Cor)ner?s 5art 0a;e )one
so on t0e basis o% t0eir 'laims in )e'eit* t0e 5ossibilit$ o% 'ontributor$ ne1li1en'e is
no lon1er somet0in1 u5on <0i'0 .r Cor)ner 'an rel$8 Contributor$ ne1li1en'e
'annot be 5lea)e) in res5onse to a 'laim in )e'eit* Hsin'e <0ere t0e )e%en)ant
inten)e) t0at t0e 'laimant s0oul) rel$ on 0is statement to t0e 'laimant?s )etriment* it
is not o5en to 0im to ar1ue t0at t0e loss 'oul) 0a;e been a;oi)e) i% t0e 'laimant 0a)
ta9en more 'are to a;oi) bein1 )u5e) b$ t0e )e%en)antI: Cler9 T in)sell on Torts*
19t0 e)* 5ara 7/>5* an) t0e 'ases 'ite) in %ootnote 918
77>8 &ir Geoffs liabilit( to contribute8 B$ anot0er late amen)ment to t0e ,e%en'e* it <as
ar1ue) on .r Cor)ner?s be0al% t0at (ir =eo%% <as liable to ma9e a 'ontribution to
su'0 )ama1es as .r Cor)ner 0as to 5a$ to t0e 'laimants on t0e %ootin1 t0at 0e <as
res5onsible (<0et0er on 0is o<n or <it0 ot0ers) %or t0eir loss as a result o% statements
<0i'0 <ere attribute) to 0im in ;arious #.= bro'0ures8 T0e statements to <0i'0
t0is alle1ation relates <ere 5lea)e) as bein1 t0ose set out in .r #o'9all?s <itness
statement8 .an$ o% t0ose statements <ere about t0e 5leasures o% li;in1 on t0e Costa
)el (ol* but some o% t0em <ere about #.= an) its )e;elo5ments8 T0e$ <ere:
HT0e #o$al ,u:a =rou5!#o$al =rou5!#o$al .arbella =rou5 0as
re;olutionise) t0e <a$ an$one 'an bu$ abroa)8I
HFn our %irst ins5e'tion tour <e <ere )eli10te) to meet .i'0ael at #o$al
,u:a =rou5!#o$al =rou5!#o$al .arbella =rou5 <0o too9 time an) 5ri)e in
s0o<in1 us 5ro5erties t0at t0e 'om5an$ 0a) built8 We <ere e;en allo<e) to
meet some true artisans at <or9 on site8I
H4 0a;e al<a$s a;oi)e) an$ Auestionable asso'iationsU <it0 #o$al ,u:a
=rou5!#o$al =rou5!#o$al .arbella =rou5 4 9no< 4 0a;e a 5artner t0at <ont
let me )o<n8I
T0ese <ere sai) to be Auotations %rom issues > an) 5 o% 200>* issue - o% 2005 an)
issue 10 o% 2002 o% #.=?s 5romotional ma1a@ine8
7758 T0is 'laim G 5resumabl$ un)er t0e Ci;il iabilit$ (Contribution) +'t 19-" G 'annot
su''ee)8 T0e issues in <0i'0 t0e statements <ere sai) b$ .r #o'9all in 0is <itness
statement to 0a;e been ma)e <ere all 5ublis0e) a%ter t0e 'laimants (<it0 t0e 5ossible
eD'e5tion o% .r Cen$on in res5e't o% t0e issues 5ublis0e) in 200>) 0a) in;este) in
+lo0a #o$al8 4n an$ e;ent* none o% t0e 'laimants <ere as9e) <0et0er t0e$ 0a) rea)
<0at (ir =eo%% <as Auote) as 0a;in1 sai) in t0e bro'0ures* an) t0ere is t0ere%ore no
e;i)en'e t0at an$ o% t0em <ere in an$ <a$ in%luen'e) b$ <0at <as attribute) to 0im8
7728 Credit to be gien b( the claimants8 T0e remainin1 issue is <0et0er* <0en it 'omes
to assessin1 t0e 'laimants? losses* t0e$ are obli1e) to 1i;e an$ 're)it %or t0e ;alue o%
t0e in;estments t0e$ ma)e8 T0at is t0e onl$ issue o% Auantum <0i'0 <as or)ere) to
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
be trie) to1et0er <it0 t0e issues on liabilit$8 T0e 'laimants? in;estments in +lo0a
#o$al onl$ 0a;e some ;alue i% t0e$ are able to establis0 t0at t0e$ 0a;e title to t0e
a5artments t0e$ a'Auire)8 T0e 'laimants? onl$ re'ourse <oul) be to 'ommen'e
5ro'ee)in1s in (5ain %or t0e eAui;alent in (5anis0 la< o% a )e'laration as to title8
T0at raises t0e Auestion <0et0er it <oul) be <ort0<0ile to embar9 on su'0 liti1ation*
bearin1 in min) t0at it is <ell establis0e) (see* %or eDam5le* *ilkington ;ood [1957]
C0 --0) t0at a 'laimant is not eD5e'te) to miti1ate 0is loss b$ 'ommen'in1
s5e'ulati;e 5ro'ee)in1s a1ainst t0ir) 5arties <0en t0e out'ome is 0i10l$ un'ertain8
77-8 4n m$ ;ie<* t0ere are too man$ obsta'les %or t0e 'laimants to surmount to ma9e an$
liti1ation in (5ain a ;iable 5ro5osition8 T0ere <oul) be no 5oint suin1 Wil'0ester or
=ros;enor on t0e basis t0at t0e$ <ere name) in t0e 'ontra'ts o% sale as t0e 5romoters
o% t0e lan) be'ause t0ere is not0in1 <0ate;er to su11est t0at t0e$ are <ort0 5o<)er
an) s0ot8 4n an$ e;ent* t0e$ <oul)* 4 ima1ine* be able to )e%en) an$ 'laims a1ainst
t0em on t0e basis t0at t0e$ are not in trut0 t0e o<ners o% t0e lan)8 +@ul <as8
Ho<e;er* t0e %a't t0at +@ul <as t0e o<ner o% t0e lan) at t0e time o% t0e 'ontra'ts o%
sale <oul) not enable t0e 'laimants to sue +@ul su''ess%ull$ eit0er8 .r +1Qera sai) G
an) 4 0a;e no reason to )oubt it G t0at an$ 'laim in (5ain a1ainst +@ul (or a1ainst
,u:a %or t0at matter) <oul) %ail* e;en t0ou10 +@ul (an) t0erea%ter ,u:a) <as t0e
o<ner o% t0e lan)* be'ause it <as Wil'0ester an) =ros;enor <it0 <0om t0e 'laimants
0a) 5ur5orte) to 'ontra't8
77"8 T0ere is anot0er 5roblem <it0 suin1 +@ul or ,u:a in (5ain8 +lt0ou10 t0e 2>
a5artments reser;e) %or +@ul un)er its a1reement <it0 ,u:a in'lu)e) all t0e
a5artments sol) to t0e 'laimants (t0ou10 not t0e one <0i'0 (ir =eo%% <as to re'ei;e
un)er 0is 5romotional a1reement)* t0at 5art o% t0e a1reement <as unen%or'eable
be'ause un)er t0e terms o% t0e a1reement entere) in t0e lan) re1ister* onl$ nine o% t0e
a5artments <ere to be trans%erre) ba'9 to +@ul8 F% t0ose nine a5artments* onl$ t<o
<ere ones <0i'0 0a) been sol) to t0e 'laimants G no8 2> sol) to .r Cen$on an) no8
90 sol) to (ir =eo%% an) .r Ho5le$8 T0e a1reement <as t0ere%ore en%or'eable onl$
in res5e't o% t0ose t<o a5artments* an) in an$ e;ent G alt0ou10 t0is is not somet0in1
<0i'0 .r +1Qera mentione) G it is 5ossible t0at t0e a1reement <as en%or'eable
a1ainst ,u:a onl$ at t0e suit o% +@ul* not t0e 'laimants8 4n an$ e;ent* li9e Wil'0ester
an) =ros;enor* t0ere is not0in1 to su11est t0at +@ul 0as assets <0i'0 ma9e it <ort0
suin18
7798 T0e same a55lies to ,u:a8 .r +1Qera 0as )is'o;ere) t0at ,u:a trans%erre) its
o<ners0i5 o% t0e )e;elo5ment at +lo0a #o$al to t0e abaro =rou5* in lieu o% 'as0* so
as to 5arti'i5ate as a s0are0ol)er in <0at soun)s li9e t0e (5anis0 eAui;alent o% a
ri10ts issue to raise 'a5ital %or t0e abaro =rou58 +s it is* t0e abaro =rou5 is no<
in a)ministration* an) its a)ministrators )o not re'o1nise t0e 'laimants? 'laims to t0e
a5artments8
7>08 E;en i% all t0ese 5roblems 'oul) be o;er'ome* it is a55arent t0at t0e 'laimants?
a5artments are not no< <ort0 <0at t0e$ <ere so as to :usti%$ brin1in1 5ro'ee)in1s in
(5ain8 T0at is be'ause .r +1Qera 0as learnt t0at t0e mort1a1e <0i'0 ,u:a entere) in
or)er to se'ure %un)in1 %or t0e 'onstru'tion o% t0e site is still outstan)in18 4t <ill be
re'alle) t0at t0e mort1a1e <as %or L2>*27>*9008 .r +1Qera?s e;i)en'e G <0i'0 4
a''e5t G <as t0at t0e a5artments reser;e) to +@ul <oul) be sub:e't to t0at mort1a1e8
4n or)er to )is'0ar1e t0e mort1a1e on a 5arti'ular a5artment* t0e 5ur'0aser o% t0e
a5artment <oul) 0a;e to re5a$ t0at 5art o% t0e mort1a1e <0i'0 is attributable to t0e
MR JUSTICE KEITH
#99ro=e0 J:05.ent
(ir =eo%%re$ Hurst an) ot0ers
an) .i'0ael Hone an) ot0ers
mort1a1e8 Ho< mu'0 t0at <oul) be <oul) )e5en) on t0e total amount o% t0e
mort1a1e outstan)in1* an) t0ere is no e;i)en'e o% <0at t0at <as8 But .r +1Qera sai)
t0at t0e lan) re1ister s0o<e) t0at t0e mort1a1e <as %or 27 $ears8 ,urin1 t0e %irst
t0ree $ears o% t0e mort1a1e* onl$ interest <as 5a$able8 Ca5ital an) interest <oul) be
5a$able t0erea%ter* t0ou10 4 assume t0at in t0e %irst %e< $ears* 5a$ments <oul) be
more attributable b$ %ar to t0e 5a$ment o% interest t0an t0e re5a$ment o% 'a5ital8
Bearin1 in min) t0at +lo0a #o$al <as to 'onsist o% 92 a5artments* it ma$ be t0at t0e
'laimants? a5artments 'oul) be sub:e't to a mort1a1e o% u5 to L250*000 ea'08 4t
<oul) not ma9e %inan'ial sense to 5ursue 0i10l$ s5e'ulati;e liti1ation in (5ain in
or)er to se'ure a )e'laration o% title to an a5artment <it0 a mort1a1e o% t0at si@e*
bearin1 in min) <0at t0e 'laimants 5ai) %or t0eir a5artments8
>. Conclusion
7>18 T0ese* t0en* are m$ 'on'lusions on t0e issues <0i'0 t0e trial raise)8 (ir =eo%%* .r
Ho5le$* .r an) .rs #oberts* .r Bar9le$ an) .r Cen$on are entitle) to )ama1es
%rom .r Cor)ner %or 0is )e'eit in 'onne'tion <it0 t0eir 5ur'0ase o% nos8 52* 20* 2>*
2" an) 90 +lo0a #o$al8 T0eir )ama1es <ill 0a;e to be assesse)* an) t0e remainin1
Auestions <0i'0 arise on .r Cen$on?s tra'in1 'laim <ill 0a;e to be )e'i)e)* at a
%urt0er 0earin1* unless t0e 5arties 'an rea'0 a1reement on all outstan)in1 issues*
in'lu)in1 t0e 'osts o% t0e 5ro'ee)in1s8 (in'e t0e 5arties <ill <ant to ta9e sto'9 o%
t0eir 5osition in t0e li10t o% t0is :u)1ment* it <ill not be ne'essar$ %or an$one to
atten) 'ourt <0en t0is :u)1ment is 0an)e) )o<n* but it is im5ortant to maintain t0e
momentum o% t0e 5ro'ee)in1s* i% onl$ be'ause o% t0e %ree@in1 or)er o;er .r
Cor)ner?s assets* <0i'0 <ill remain in 5la'e %or t0e time bein1 until t0e 'ourt or)ers
ot0er<ise8 4 t0ere%ore )ire't t0at t0e 5arties? soli'itors let m$ 'ler9 an) t0e Queen?s
Ben'0 istin1 F%%i'e 9no< <it0in 21 )a$s o% t0e 0an)in1 )o<n o% t0is :u)1ment
<0et0er a %urt0er 0earin1 is reAuire)8 4n t0e meantime* i% an$ 5art$ <is0es to a55l$
%or 5ermission to a55eal* m$ 'ler9 s0oul) be noti%ie) o% t0at <it0in - )a$s o% t0e
0an)in1 )o<n o% t0is :u)1ment* an) 4 <ill 'onsi)er t0e Auestion on t0e basis o% an$
<ritten re5resentations <it0out a 0earin18 Ho<e;er* an$ a55ellant?s noti'e <ill still
0a;e to be %ile) <it0in 21 )a$s o% t0e 0an)in1 )o<n o% t0is :u)1ment8
7>28 3inall$* 4 <is0 to t0an9 'ounsel an) soli'itors %or t0eir in5ut into t0is 'ase8 T0e$
ma)e m$ tas9 less onerous t0an it <oul) ot0er<ise 0a;e been* t0ou10 m$ 5arti'ular
t0an9s must 1o to .r &e%%eris <0o ste55e) into t0e brea'0 ;er$ s0ortl$ be%ore t0e
0earin1 <0en 'ir'umstan'es ma)e it su'0 t0at .r an) .rs Cor)ner?s 5re;ious
'ounsel 'oul) no lon1er re5resent t0em8