NEWS ARCHIVE

TARGETFOLLOW INVESTMENTS LIMITED AND KILCARNE HOLDINGS LIMITED COURT OF APPEAL, LONDON | 16/11/05

The Court of Appeal today (Wednesday) dismissed all claims by Kilcarne Holdings Limited of Jersey against Targetfollow Group concerning the £30 million development of Baskerville House in central Birmingham.

Kilcarne, which is part of the Daphne Caprice Group believed to be owned by the family of Malvinder Singh, had claimed that an arrangement entered into by Targetfollow and Kilcarne in February 2002 for a £2.5million loan, included an agreement that Baskerville House would be developed as a joint venture.

Kilcarne’s case was dismissed at first instance after a 10-day trial in 2004 when Mr Justice Lewison ruled that the entire agreement between the parties was contained in a series of written agreements, documenting the loan. These agreements did not create a profit sharing joint venture.

Kilcarne appealed, only to have its claim thrown out for a second time. In addition, Kilcarne was ordered to pay costs to Targetfollow both for the trial and the appeal hearing. Those costs are likely to exceed £1million.

Following the decision of the Court of Appeal, Ardeshir Naghshineh, Targetfollow’s Managing Director said: “We knew the claim was wholly without foundation and we were confident of this outcome. We are pleased that the Court of Appeal has ruled in our favour and we can put this dispute behind us.

Katie Bradford, property and finance litigation partner of Linklaters, said: “The Court of Appeal has endorsed the decision of Mr Justice Lewison who reviewed the claims in a careful and detailed judgment.

“This was a great win for Targetfollow but is also of wider interest as the Court of Appeal said that allegations of joint ventures on the basis of trust law will not be successful where the parties have negotiated legal documents regulating their relationship. This gives welcome clarity to developers and funders.“

Targetfollow was represented by Katie Bradford and Sarah Moore of Linklaters and Christopher Nugee QC and Joanne Wickes of Wilberforce Chambers