The liquidator of a company owned by a member of
Henderson J found that the proceeds could not be frozen because Somar Al Assad did not have an interest in Witanhurst, which was sold, in July, by a family trust to developer Marcus Cooper.
However, he found that a more limited freezing injunction would be made against three flats in
Witanhurst, a Grade II-listed Queen Anne-style mansion, is set in five acres at the top of Highgate Hill, and was the setting for BBC’s
Designed for wealthy soap magnate Sir Arthur Crosfield, it took seven years to build (from 1913 to 1920), and with 25 bedrooms, a 40,000 sq ft ballroom, kitchens and extensive terraces, it is the second largest private house in London after Buckingham Palace.
Al Assad, who is the cousin of
In December 2005, a liquidator issued proceedings against Al Assad for wrongful trading.
On 4 July 2006, judgment was entered against Al Assad in favour of the liquidator for a sum exceeding £6m.
A year later, after the sale of Witanhurst to Cooper, a freezing order was granted against Al Assad, in respect of £6.5m of the proceeds of sale.
Al Assad argued that the freezing order should be discharged on the ground that he had no interest in the property or its proceeds.
Accordingly, the liquidator applied for a more limited freezing order in respect of the Spanish properties and bank account.
Granting the more limited order, the judge held that there was a good arguable case that Al Assad was the beneficial owner of the Spanish properties and bank account over which the liquidator sought the order.
“I am also satisfied that there is a real risk that Mr Al Assad will transfer or otherwise seek to dissipate these assets if he is left free to do so.”
Franses v Al Assad and others Chancery Division (Henderson J) 26 October 2007
Maxwell Mallin (instructed by DLA Piper UK LLP) appeared for the claimant; Matthew
