Mr Michael Tuke instructed Michael Grenfell to institute multiple proceedings against J D Classics Ltd and Derek Hood the first case of which (against the Company only) was concluded successfully on the 18th of April 2018.
In 2009 Mr Tuke sold his highly successful business, and had £40m to invest in Classic Cars.
He instructed Mr Derek Hood of J D Classics Ltd as a professional advisor and his agent for buying and selling cars on his behalf. Mr Hood advised him that he could double his money.
Over the next few years Mr Tuke bought and sold some 41 classic cars on the advice of Mr Hood, and, at a time when the values of classic cars was increasing, suffered catastrophic losses which nearly bankrupted him.
Mr Hood on behalf of J D Classics Ltd denied that he was Mr Tuke's agent, or that he should produce any documents to explain fully and transparently details of the various transactions.
After we carried out detailed enquiries and analysis of thousands of documents, we issued proceedings against J D Classics Ltd to have that issue decided. Subsequently three further sets of proceedings were issued against J D Classics Ltd, in two of which fraud and deceit are alleged against both the Company and Mr Hood, and similar allegations are being added to the third claim. Some 18 cars are involved.
The Agency case was decided in Mr Tuke's favour as mentioned above. Although not part of that case the Judge nevertheless observed that Mr Hood had been guilty of deliberate and dishonest conduct in relation the the sale of an XKSS on Mr Tuke's behalf.
The other three cases are to be consolidated and heard at a later date.
The Approved Judgment is available below.
We instructed Sean Brannigan QC and Alex Wright, both of 4 Pump Court chambers, to represent Mr Tuke in court.
This case illustrates how important it is for both dealers and customers to establish at the start of a relationship exactly what that relationship is, and to confirm it in writing. An agent has a duty of absolute fidelity and openness to its principal and must not make a secret profit at the principal's expense.
|Full Judgment Tuke v JD Classics Ltd||17.05 MB|