The cross-examination of the directors of Wetherspoon’s (JDW) former property adviser Van de Berg & Co (VdB) has begun in the High Court.
Director Christian Braun is expected to be questioned for five days, while Richard Harvey and George Aldridge are to be cross-examined for a total of four days, concerning matters relating to the 15 years during which VdB acted for the pub chain.
Peter Smith J will decide two claims brought by the pub giant against its former adviser, and its related companies, alleging that it was the victim of dishonesty, deceit and fraud regarding 17 property transactions.
In the first claim, JDW alleges that, between 2002 and 2005, VdB wrongfully introduced four properties to Barracuda, a competitor of JDW.
The second concerns 13 transactions that took place between 1995 and 1998, in which JDW, on the advice of VdB, purchased the leasehold of properties when VdB should have advised them to obtain the freeholds, which were available.
During cross-examination, Peter Smith J asked Braun: “Can’t you see the problem when you have the scenario that VdB employees are working for JDW to find pubs, but have a simultaneous opportunity to earn commission for finding pubs for other companies? That puts them in a difficult position doesn’t it?”
Braun answered: “Yes it does, but I set out to offer everything to JDW first – that is what I tried to do over the years.”
Counsel for JDW accused VdB of “a dreadful and very serious conflict of interest” and of “divided loyalties”.
Denying those accusations, Braun said: “VdB’s duty was to pass on to JDW those properties of the right size and location and filter out unsuitable properties…I encouraged everyone who saw something suitable to pass it on to JDW.”
VdB is counter-claiming for damages for the wrongful termination of its contract with JDW.
Tim Martin, the founder and chairman of Wetherspoon, finished his own seven-day cross-examination last week.
The case continues.
