Wetherspoon announcement in property row
JD Wetherspoon has taken the unusual step of issuing a statement in response to a story published in the Sunday Express.
The story related to the on-going legal battle between Wetherspooon and its former property advisor Van De Berg & Co.
The Board of JD Wetherspoon plc note the article in yesterday's Sunday Express, alleging Wetherspoon broke section 151 of the Companies ActWetherspoon statement
Wetherspoon is suing Van de Berg & Co for millions of pounds claiming the company, which acted as their sole property adviser from 1990 to 2005, dishonestly used information obtained from its position.
The Express story alleges that Wetherspoon required Van de Berg to spend eight per cent of its monthly retainer on shares in the pub chain, in contravention of the Companies Act.
The statement reads: "The Board of JD Wetherspoon plc note the article in yesterday's Sunday Express, alleging Wetherspoon broke section 151 of the Companies Act.
"Wetherspoon dismissed Van de Berg as its retained estate agents just over a year ago when it discovered that Van de Berg and certain of its directors and associates had been finding sites for Wetherspoon's competitors.
"Legal action was commenced by Wetherspoon at the time.
"Van de Berg subsequently raised this point about the financing of shares in its defence.
"This point had never been raised by the defendants prior to the commencement of legal action by Wetherspoon. In the course of these proceedings, Wetherspoon has asked for full information regarding trust documentation and distributions, but this has been refused so far by the defendants.
"Our legal advice is that there is no merit whatsoever in the defendants allegations in this area.
"The situation is due to go to court in December 2006 and no doubt the issues will be resolved then."
