JD Wetherspoon chairman Tim Martin has warned agents and investors to be wary of back-to-back freehold deals after settling another alleged fraud claim.
The high street pub chain has collected around £10m in damages and fees as a result of high court battles with various agents and investors over the past eight years.
The battles relate to a 2005 claim in which Wetherspoon successfully argued that its former retained agent, Van de Berg & Co, had fraudulently diverted freehold properties to third parties, while recommending Wetherspoon take leases.
Van de Berg & Co was ordered to pay almost £8m in damages in 2009.
This week the pub operator settled its final claim, accepting £400,000 from property investor Jason Harris.
Wetherspoon had sued Harris, formerly of First London and now of First Urban Group, as an alleged accessory to the deals. Harris contested the claim and has not admitted liability.
It has sued a number of other parties in relation to the Van de Berg & Co claim, including Anthony Lyons, formerly of Davis Coffer Lyons, and Paul Ferrari of Ferrari, Dewe & Co, and settled them all without admission of liability.
Lyons agreed a £1.2m settlement and Ferrari £500,000.
Martin said: “Although liability was denied by all of the defendants, I believe these cases contain an important message for agents and property investors. If you are offered very profitable back-to-back freehold deals by the retained agent of a retailer, it is advisable to verify in writing from the retailer itself that it has consented to the transaction.”
samantha.mcclary@estatesgazette.com
