Plans to build a private hospital specialising in treating obesity have been derailed after partners in the project’s joint venture fell out and issued legal proceedings against each other.
Developers Hitendrakumar Patel and Michael Parker had signed up to a jv in 2020 to buy and develop property at Oyster Wharf, Battersea, into a specialist clinic. They bought the property in March 2021 for about £3.5m.
However, by August the pair had fallen out after Patel became concerned that he and companies controlled by him were putting much more money into the development than Parker.
According to court documents, the development stalled and legal proceedings began the following May.
According to the documents, Patel is suing Parker claiming damages for deceit, misrepresentation, breach of contract, breach of fiduciary duty, breach of trust, and unjust enrichment in relation to alleged fraud in Parker’s management of the jv.
Parker is counterclaiming, alleging that a personal guarantee that he signed relating to the project is unenforceable because, he said, it was obtained by deceit or misrepresentation.
At a court hearing last month lawyers for Patel asked High Court judge Nicola Rushton KC to rule in his favour without a full trial. However, in a ruling handed down yesterday, she refused.
“There will need to be a trial at which it can be anticipated that the lead-up to and history of the development will be examined in detail,” she said.
As for the development, the judge said: “Fixed charge receivers have since been appointed… in respect of the hospital, under its legal charge.
“Mr Parker no longer therefore has any access to the premises. I am told it is unlikely that the development will ever be completed.”
Patel v Parker and others
Business and Property Courts (Rushton J) 31 July 2023
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