Lorenz loses finder fee’s claim over Fox-Davies’s aborted Savile Row lease

Property adviser Tony Lorenz has lost his High Court claim against Fox-Davies Capital for unpaid fees after its short-lived agreement to take space in a trophy Savile Row office block. Lorenz’, who represented his company Lorenz Consultancy in court, was seeking to recover £142,774 of professional charges. However, Kitchin J rejected his claim on the basis that he did not have a contract for property search and introduction services with the financial services firm. Lorenz had entered into an agreement with Kim Richardson, chairman of Jendens Holdings and Jendens Securities, who was at the time a proposed purchaser of Fox-Davies before the deal collapsed. The judge said that that agreement had been entered into by Richardson on his own behalf and that, in March 2009, he had wanted to set up his own stockbroking and investment banking business. Knowing that Fox-Davies was in financial difficulties, he offered to purchase the company. The judge continued that Richardson had “ambitious plans” for the company and, during negotiations over the sale, had instructed Lorenz to find larger premises. In June 2009, Fox-Davies took a 10-year lease of the 8,500 sq ft sixth floor at 23 Savile Row, London W1, at a rent of £93 psf. The space at Irish developer D2 Private’s landmark scheme was the first letting in the building and was to be occupied by a new subsidiary of Fox-Davies. However, the sale of Fox-Davies fell through, leaving the space surplus to requirements. Two weeks after the deal was agreed, the floor was assigned to fund manager Altima, while Fox-Davies remained in its offices at Whitefriars House, London EC4. Lorenz Consultancy claimed £142,774 in fees and VAT for introducing Fox-Davies and securing the lease at the development. However, Fox-Davies denied that it was party to the contract, arguing that Lorenz’s agreement was solely with Richardson. Lorenz claimed that when  Richardson had approached him, he had presented a Fox-Davies business card bearing his name, a company e-mail address, a telephone number that connected to Fox-Davies’s offices and the number of a Blackberry provided by the company. However, Kitchin J said: ” Fox-Davies was clear that it did not give Richardson authority to enter into an agreement with the claimant on its behalf. “The need for larger premises arose from Richardson’s ambitions for the defendant’s business as and when he acquired it, and it was in that context that Richardson and Fox-Davies had discussed his proposal to instruct Lorenz. “If Richardson had asked Fox-Davies for permission to act on its behalf, his request would have been refused, and for good reason. The company did not require larger premises for its own business and it had no money to pay for them.” The judge ordered the Lorenz Consultancy to pay Fox-Davies’ legal costs to be assessed, with an interim payment of £40,000 to be paid by instalments. Lorenz did not seek permission to appeal. Lorenz Consultancy Ltd v Fox-Davies Capital Ltd Chancery (Kitchin J) 17 March 2011 Anthony Lorenz appeared for the Lorenz Company in person; David Blayney (instructed by Field Fisher Waterhouse LLP) appeared for the defendant.