Lancer defence reveals ‘profligacy’ of Abu Dhabi royal family

Amended court documents from the sacked former manager of London’s Berkeley Square Estate outline a litany of opulence and “profligacy” by the Abu Dhabi royal family. Lancer is counter-suing a group of companies ultimately owned by Sheikh Khalifa bin Zayed bin Sultan Al for £11m in unpaid fees. The Abu Dhabis are suing Lancer for at least £30m, charging “significantly higher fees” for their services than was rational. But in Lancer’s amended defence, made available by the High Court last week, it is revealed how they witnessed massive “profligacy” that dwarfed the sums they charged. The filing says that the Sheikh had drinking water fountains installed at his mansion in Ascot, Berkshire that dispense Evian water, even though the house has never been occupied, and that in 2006 Lancer director Andrew Lax was told to buy a private house for $25m in the centre of Washington DC for Sheikh Khalifa because he had to make an official visit to the city “but did not like staying in hotels”. Two years later, Lax was asked to “locate” a large country house owned by the Sheikh near Madrid. “Upon eventually finding the property, which turned out to have a permanent staff of 15 people, Mr Lax was told by the staff that he was the first visitor to the property for 17 years,” the filing said. “Mr Lax later learned from the accounts department at DOPA that the cost of staffing this property was in excess of €500,000 per annum.” And in 2009, Lax found out about a number of properties registered to the Sheik in the highly exclusive “Super Cannes” development in Provence. The properties had a private railway into Cannes. “Upon enquiries with local agents, Mr Lax was advised that the collective value of these properties was €30-35 million, even though they had been so neglected that neighbours had complained to the Cannes Mayor’s office about their state of repair.” Lancer claims that these examples of ‘profligacy’ renders the claimants’ assertion that their fees were unauthorised or needed to be concealed incredible. Lancer’s lawyers also state that the claimants bringing the lawsuit against them may not be authorised to do so. “Sheikh Khalifa is reported to have suffered a stroke in January 2014, which the defendants believe to be gravely debilitating of his mental faculties,” says the filing. “Sheikh Khalifa and/or the General Secretariat of the Executive Council (among others) have since January 2014 issued documents which purport to (but, given his incapacity, cannot in fact) be approved and/or signed by Sheikh Khalifa.” Lancer says it plans to use as evidence a letter sent from the claimants solicitors in November last year as part of the case. The letter included a document with the “purported signature of Sheikh Khalifa”. That signature, they say, “did not match known examples of his signature but rather appeared to match the signature of Sheikh Mohammed bin Zayed Al Nahyan”. Lawyers for the claimants reject these allegations, saying that Sheikh Khalifa is not suffering from any “mental incapacity” and that the proceedings against Lancer are brought by the Berkeley Square Estate owning entities, not Sheikh Khalifa. They also brand the allegation of profligacy as “irrelevant and embarrassing”. The dispute is scheduled to go to trial after May next year, and will last 18 days.