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No for McKillen’s Ireland hearing plea

McKillen-THUMB.jpegPaddy McKillen has failed in a renewed attempt to have the next stage of his battle with the Barclay brothers 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.

In these proceedings, Sir David and Sir Frederick Barclay’s company Misland and Derek Quinlan allege that pre-emption rights in respect of McKillen’s 36.2% share in Coroin – the company that owns trophy hotels The Berkeley, The Connaught and Claridge’s – 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.

Earlier this month, John Macdonald QC, representing McKillen, told the judge that these proceedings form part of the “continuing and perhaps never-ending struggle” between McKillen and the Barclay brothers over the control of Coroin.

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