Irish property developer Paddy McKillen faces a potential £20m legal bill following his failed high court battle with the Barclay brothers over three of London’s most famous hotels – Claridge’s, The Berkeley and The Connaught.
Justice David Richards, who last month rejected McKillen’s claims against the Barclays and related parties, today ordered the developer to pay the legal costs of all defendants in the case.
Though the final bill will be calculated at a later date, the court heard that the total is likely to be around £20m – including the Barclays’ costs of around £8m, Derek Quinlan’s costs of around £4.5m, McKillen’s own costs, also of around £4.5m, and those of other defendants.
Following a two month trial, the judge rejected McKillen’s claims that steps taken by Sir David and Sir Frederick Barclay in their quest to take over Coroin – the parent company of the Maybourne hotel group – were in breach of the company’s articles of association and shareholders’ agreement.
McKillen had alleged unfairly prejudicial conduct of the affairs of the company and that there had been an unlawful conspiracy to cause him loss.
During the trial, which ran from March until the end of May, McKillen claimed that the Barclays had shown “no mercy” to him in their quest to take over the hotel group.
However, while the Barclay brothers publicly acknowledged their desire to acquire complete control and ownership of Coroin, they denied any wrongdoing, and maintained that McKillen’s claims were calculated to “embarrass” them and tarnish their reputations.
McKillen is seeking to appeal the decision.
