Stuart Hornett

Stuart's practice is a blend of property and commercial Chancery work.  He has particular expertise in property and landlord and tenant matters (see for example the recent and widely commented on case of Re The Cotswold Company concerning surrenders and CVAs and the important decision of Lewison J. in Paddington Basin v West End Quay concerning qualifying long term agreements) and large dilapidations claims (such as Lyndendown v Vitamol in the Court of Appeal and Bruntwood v British Telecom). Stuart also has a reputation for property/mortgage-related professional negligence such as Vision Golf v Weightmans (acting on behalf of the successful claimant). He has substantial experience in cases of high value and complexity involving company and insolvency matters and cases concerning breach of fiduciary duties andbreach of confidence (see for example the recent case 4Eng v Harper concerning liability under s.423 IA 1986). He regularly acts for plcs, pension funds and local authorities.  Stuart provides lectures and seminars. He is a member of the Chancery Bar Association and the Property Bar Association.

recommendations

Leading junior in Property Litigation, Legal 500 (2005 - 2010)
Leading junior in Real Estate Litigation, Chambers & Partners (2006 - 2010)
Leading junior in Commercial Litigation, Legal 500 (2010)

"Invaluable for big-money work, he makes serious points at silk level" Legal 500 (2007)

featured cases

Stuart is currently instructed by Lass Salt Garvin on behalf of Eastbridge Capital in JSC BTA Bank v Solodchencko & Ors, one of the cases making up the largest commercial fraud proceedings currently pending in the Commercial Court and Chancery Division and featured as a "Top 20 case of 2011" in The Lawyer (see http://www.thelawyer.com/top-20-cases-of-2011/1006498.article). The case concerns allegations of fraud against former directors of BTA JSC Bank of Kazakhstan worth in excess of $1.5bn. Stuart has appeared in the Chancery Division on freezing and search order applications. Commercial Court applications are due to be heard later this year.

Hildron Finance v Sunely Holdings  (Henderson J) [2010] EWHC 1681, 28 E.G. 85
Featured case with commentary in Vol. 1040 Estates Gazette 9/10/10. Acted for successful defendant at first instance and respondent on appeal in defending a claim under an overage agreement. The Court held that the contract had been frustrated by the effects of the Leasehold Reform etc Act 1993 (applying the long line of authorities from Baily v De Crespigny) and was not prepared to construe the overage clause in a way that made it apply to the proceeds of the enfranchisement process.

Innovatis Investment Fund Limited v Ejder Group Limited  (Norris J) [2010] EWHC 1851
Acted with Romie Tager Q.C in obtaining judgment at trial for over US$4m under a disputed "repo" agreement concerning a Lehman Bros Medium Term Basket Note with a face value of US$7m. It is believed that this is the first reported decision in which the High Court has considered the legal nature of a securities repurchase agreement. The case also concerned issues of an agent's liability under a contract in the context securities trading.

Paddington Basin Developments Ltd v West End Quay Estate Management (Lewison J.) [2010] EWHC, [2010] NPC 46

Stuart successfully represented some 460 residential underlessees in the Paddington Basic Development an important action to determine whether an Estate Management Deed was Qualifying Long Term Agreement under the Landlord and Tenant Act 1985 and therefore subject to the statutory consultation provisions. In one of the very few High Court cases ever to consider the relevant statutory provisions, the Court held that the Deed was a Qualifying Agreement. The case is notable for its discussion of the policy behind the statute and an analysis of types of agreement that will and will not fall within the definition of Qualifying Long Term Agreement.

In Re 4Ing v Harper and Others  Ch.D (Sales J.) The Times, 6.11.09
Acted for the relatives and connected companies of a principal defendant in an £8m fraud case and the Claimant's application for relief under section 423 of the Insolvency Act 1986 in relation to real property and other assets in the UK and Guernsey.

Cairns v Christie & Co. 3.9.09

Acted for a successful Claimant in the first reported decision (according to Simpson on Professional Negligence) in which a party has recovered damages in negligence against an independent expert appointed jointly by the parties to carry out a valuation, in this instance, the valuation of freehold licensed premises pursuant to an option in a lease.

Northbrook v Abbey Estates Limited (June 2009) CA
Acted for successful claimant seeking the return of a deposit for property purchased at auction on the basis of misrepresentation; implied covenants to title and vacant possession. The Defendant was refused permission to appeal at a fully argued permission hearing. Lloyd L.J. ruled that the common auction conditions did not exclude liability for positive misrepresentations. He also held that there was no reason why a Court could not award enhanced interest on costs under Part 36 where the receiving party was funded by a CFA.

Bruntwood v British Telecom (2008) Ch.D

Acted for British Telecom in week long trial defending a multi-million pound terminal dilapidations action. The case engaged difficult issues of supersession in the context of section 18 of the Landlord and Tenant Act 1927 and complex residual valuations.

In the matter of the Cotswold Company Ltd Ch.D [2009] 2 BCLC 371; [2009] L&TR 22 Acted for landlord in successfully challenging the decision of a supervisor of a CVA in a claim for future rents and liabilities under a commercial lease. The case concerned the effect of a subsequent deed of surrender on a claim which had already been compromised by the CVA and whether the terms of the surrender were sufficient to reserve the claim for future rents.

SG&R Valuation Service LL v Bourdais [2008] EWHC 1340, [2008] IRLR 770

In this matter Stuart defended Colliers LLP in various injunction applications arising out claims of inducement of breaches of contract and breaches of confidence.

Meisels v Lichtman, Berger & Weiss QBD (Blake J.) [2008] EWHC 661

Acted for Trustees of charity in an action for the return of a disputed donation. First reported decision of an English Court in which there has been a ruling on the common law definition of a gift, exploring the role of subjective intent of the donor and whether a gift can have any element of reciprocity or consideration.

Lyndendown Ltd v Vitamol Ltd  CA [2007] 29 EG 142
Acted for a subsidiary of a plc at first instance and in the Court of Appeal. Successfully defended a claim for damages for disrepair at the end of the term on the basis that because there was a 1954 Act protected sub-tenant holding over, damage to reversion was nil or nominal (applying Family Management v Gray). The existence of a side letter containing various assurances and an indemnity from the tenant's parent company did not alter the position.

Vision Golf Ltd v Weightmans (a firm) Ch (Lewison J.) [2005] 1675 EWHC 
Acting for successful Claimant in a professional negligence action in a case concerning solicitor's failure to apply promptly for relief from forfeiture by peaceable re-entry; whether breach caused any loss; whether an application for relief made after 6 months by a second firm of solicitors under the equitable jurisdiction would have succeeded; whether parallel lease also forfeited and whether it was lost as a result of the solicitor's negligence.

Crowndale Taverns v Stavaco Limited Ch.D (Lindsay J.) LTL 9.11.04 
Application to cancel cautions protecting options over development land; failure to comply with s.2 Law of Property (Miscellaneous Provisions) Act 1989; no exchange of identical contracts within s.2(3); estoppel.

Kruger Trading Ltd v Global Network Holdings Ltd Ch.D (T. Mowchenson Q.C) 2004 EWHC 1396

Construction of demise clause in commercial lease; declarations as to proper construction; rectification on grounds of mutual or unilateral mistake; forfeiture of lease.

Dobbs & Acorn Televillages v Tiodos Bank & Morrison & Others  Ch.D (Lewison J.) 2004 EWHC 845

Successfully defended Grant Thornton against a negligence action involving allegations of disposing of UK property and US shares at an undervalue.

Dobbs v Grant Thornton (Neuberger J.) (December 2002)

Application to remove Receivers under s.34 Insolvency Act 1986; application struck out on grounds of delay and potential prejudice to innocent third parties.

Goode v Martin (CA) [2001] 1 All ER 620

Adding cause of action outside limitation period; CPR 17.2; Article 6 ECHR.

Audergon v La Baguette (CA) The Times 31/1/2002

Lifting automatic stay under CPR PD51; proper approach to appeal: review or rehearing.

FiveCourts Ltd v Leisure Development (2001) 81 P&CR 22
Forfeiture for breach of repairing covenants; consent orders not complied with; whether jurisdiction to interfere with consent order; whether consent should be varied.

McDonald v Myerson & others CA [2001] NPC 20
Recovery of property obtained under an executed contract tainted with illegality; enforcement of illegal contracts compared to a right of recovery based on proprietary interests obtained under an executed agreement; extension of principles in Tinsley v Milligan.

Lady Manor Ltd v Fat Act Bars [2000] EG 121 

Recovery of introductory agent's fee; whether contract created by cold mail volunteering information on terms.

UCB Invoice Discounting Ltd v Creative Services Inc (CA) 1999
Lloyd's Alert Service (sale of goods; fitness for purpose and reasonable reliance)

Donhou v Sun Alliance Insurance (1997) (CA, unrep) 

Avoidance of commercial insurance policy on grounds of admissions made by assured.

Mitchell & Hobbs (UK) Ltd v Mill [1996] 2 BCLC 102 

Validity of legal proceedings authorised by company; power of director to direct legal proceedings on behalf of company.