The High Court has ended a developer’s hopes of securing a £2m profit share payment under a development management agreement (DMA) for a Mayfair building that houses the London flagship of fashion retailer Dsquared2.
Urban & Civic Projects Ltd had sought to refer its profit share claim to an independent expert, but other partners in the agreement, Pavilion Property Trustees Ltd and Pavilion Trustees Ltd, took the matter to court claiming Urban & Civic had left it too late to do so.
But now deputy judge Martin Griffiths QC has sided with Pavilion, ruling that Urban & Civic should be “deemed… to have accepted the accuracy of the claimants’ calculation that the profit share was zero”.
The parties entered into the 2012 DMA in relation to the development of a newly built commercial building comprising retail and office space at 49-51 Conduit Street London, W1, between Regent Street and Savile Row, part of which was eventually let to Dsquared2.
The dispute centred on whether Urban & Civic had lost its right to refer a dispute about the profit share to an independent expert. It did so in May 2016, but Pavilion successfully argued that this was out of time.
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