Caribbean resort developer Harlequin Property, which was awarded $11.6m in damages in its claim against accountancy firm Wilkins Kennedy (WK) earlier this month, has had its damages converted into pounds by the trial judge.
In a ruling today Coulson J said that instead of paying the developer $11,630,970.50, WK should pay it £7,443,821.12.
“The claim which I allowed was expressed in dollars”, Coulson J said in today’s ruling. “The defendant sought an order that the judgment sum be expressed in sterling and calculated in accordance with the exchange rates set out in the claimants own evidence at trial.”
This mattered because, due to the recent fall in value of the pound against the dollar, the bill would be much higher if today’s exchange rate was used.
Coulson said that in his opinion, the amount could be expressed in pounds.
However, with a Serious Fraud Office investigation ongoing, the sum may ultimately go to out-of-pocket investors.
Coulson said today that the money should be paid into the court by close of business on 13 January 2017.
“That way the court has control over the money, at least until such time as the position of the investors and/or the insolvency becomes clearer”, he said.
Previously, he ruled that the money should be held in escrow, “but I can now see, given the nature of the relationship between the solicitors, that it would not be appropriate to order any sort of escrow account”, he said.
The company had sought up to $60m in a claim in which it alleged that WK was responsible for delays and overruns to the project, a development called Buccament Bay on the island of St Vincent and the Grenadines.
Harlequin Property (SVG) Ltd and another v Wilkins Kennedy (a firm), Technology and Construction Court, (Coulson J), 21 December 2016
Nicholas Davidson QC and Hefin Rees QC (instructed by ELS Legal LLP) for the claimants
Justin Fenwick QC, George Spalton and Peter Morcos (instructed by Kennedys Law LLP) for the defendant
