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Paddy McKillen faced with £7.5m Barclay brothers' legal bill


Developer Paddy McKillen

Developer Paddy McKillen

Developer Paddy McKillen

DEVELOPER Paddy McKillen's final bill to the billionaire Barclay brothers for legal costs for part of his marathon failed court action over the ownership of three high-profile London hotels is more than £7.5m.

Legal representatives from both sides yesterday told a High Court taxing master during a brief hearing that they had agreed the figure following negotiations.

The continuing battle for the control of Coroin, which runs Claridges, the Connaught and the Berkeley hotels, resulted in a lengthy battle in the High Court in London which Mr McKillen eventually lost.

Judge David Richards ruled in August 2012 against Mr McKillen after he sued David and Frederick Barclay, the owners of the Telegraph Media Group, over their attempts to take over Coroin.

The total costs for the Barclay side – which includes companies and individuals associated with the brothers – amounts to £7,081,276.19, while an additional £516,026.92 has to be paid in interest accrued. The final total amounts to £7,597,303.11 (about €9.2m).

The final costs certificate details that £2,585,000 has already been paid while the rest must be paid within 14 days.

It had been estimated that the total bill for the failed High Court legal action would amount to €26m for Mr McKillen. This excludes any legal bills for the subsequent appeal. Mr McKillen challenged the decision in the Court of Appeal but the case was dismissed last July.

Mr McKillen owns 36.2pc of Coroin and the Barclays 28.36pc. Financier Derek Quinlan's share of 35.5pc is in the control of the Barclays after the brothers secured the shareholding from NAMA.

The Irish businessman had claimed that Mr Quinlan's share should have been offered to him under a clause in the shareholders' agreement of the company – a pre-emption agreement. The majority of the proceedings against the Barclay camp were dismissed.

The judge said there had been no agreements made between the Barclays and Mr Quinlan which breached the pre-emption provisions.

A three-day hearing on what the final bill for Mr Quinlan's legal costs will be is expected to take place in November.

Irish Independent