Paddy McKillen has failed in a renewed attempt to have the next stage of his battle with the Barclay brothers (pictured) for control of the £1bn Maybourne Hotel Group heard in Ireland.
McKillen had sought to persuade Judge Behrens QC to overturn Master Bowles’ decision that a bid to force McKillen to sell his shares in Coroin – the parent company of the hotel group that includes trophy hotels The Berkeley, The Connaught and Claridge’s – should be heard in London.
The Master found that Coroin, domiciled in England, could be used as an “anchor defendant” under European law to place the case within the jurisdiction of the British courts.
But McKillen claimed that, as Coroin is only a nominal defendant in the proceedings, and the only issue is between the claimants and him, it should be heard in Ireland.
Judge Behrens – who described the case as “a further round in the long running dispute over control of Coroin” – rejected his appeal, ruling that he did not accept the submission that the primary dispute is between the claimants and McKillen.
He said: “As it seems to me, Coroin is as interested as the claimants in knowing whether Mr McKillen’s shareholder security has become enforceable. In my view both are proper parties to the proceedings.”
In these proceedings, Sir David and Sir Frederick Barclay’s company Misland (Cyprus) Investments and Derek Quinlan allege that pre-emption rights in respect of McKillen’s 36.21% share in Coroin – have in effect been triggered, and that a meeting of Coroin’s directors should be held to determine whether McKillen’s stake should be offered for sale to the other shareholders.
They seek a declaration that his shareholder security has become enforceable. Misland is the registered owner of 28.36% of Coroin, while Quinlan is the beneficial owner of the remaining 35.43%, registered to fellow claimants Ellerman Corporation and B Overseas as mortgagees.
Earlier this month, John Macdonald QC, representing McKillen, told the judge that these proceedings formed part of the “continuing and perhaps never-ending struggle” between McKillen and Sir David and Sir Frederick Barclay over the control of Coroin.
Misland (Cyprus) Investments Ltd & ors v McKillen & anr Chancery (Judge Behrens QC) 25 November 2014
Kenneth MacLean QC and Michael Fealy QC (instructed by Quinn Emanuel Urquhart & Sullivan LLP and Linklaters LLP) for the claimants
John Macdonald QC and Nicola Allsop (instructed by Herbert Smith Freehills LLP) for the first defendant
