Barracuda pub deal prompted JDW action against Van de Berg

The legal action between JD Wetherspoon and its former property advisor Van de Berg began after the property company was allegedly involved in finding a site for arch-rival Barracuda, the Morning Advertiser has learnt.

Van de Berg was paid a retainer of between £1.6m and £2m a year to find sites exclusively for JDW.

But Wetherspoon's legal action for damages against Van de Berg was started after it was involved in letting a site in Sidcup, Kent, to Barracuda on a rent of £50,000 per annum.

Former Managing Director​Ironically, Barracuda chief executive Mark McQuater is a former managing director of JD Wetherspoon.

Last week, Van de Berg claimed JD Wetherspoon broke section 151 of the Companies Act by requiring it to spend 8% of its monthly retainer on shares in the pub chain.

Embarrassment​This week JD Wetherspoon chairman Tim Martin said: "This is clearly an attempt to embarrass us and put us off pursuing our claim."​

Martin added that he was spending up to 70% of his time overseeing the legal action.

Incident Room​The company has also set up an "incident room" staffed by 10 people who are examining the 600-plus property deals involving Van de Berg, which began working for JD Wetherspoon in 1990 after it sold them a site.

Van de Berg denies it has done anything wrong.

No axe to grind​Last week, Chris Braun, Van de Berg managing director, told the Financial Times he had "no axe to grind with Wetherspoon. It is up to the judge to decide".

The action for several millions in damages is due to be heard in the High Court in December.