Exclusive: Hotels war is stepped up as Barclays are accused in US

 
28 June 2013

Ulster-born developer Paddy McKillen has opened a new front in his bitter battle against the billionaire Barclay brothers over the ownership of some of London’s top hotels, the Standard reveals today.

The two factions have been waging a £1 billion war over the ownership of the Berkeley, Claridge’s and the Connaught hotels for more than two years.

Today it emerged lawyers have filed a complaint against Sir David and Sir Frederick Barclay, their company, Ellerman Corporation Limited, Aidan Barclay and others, alleging violations of United States and California law.

McKillen is represented by attorney John Hueston, a former lead prosecutor in the United States case against Kenneth Lay and Jeffrey Skilling of Enron. According to the claim, received by the United States District Court in California on 26 June, the defendants allegedly violated the Fair Credit Reporting Act and invaded McKillen’s privacy in violation of California law.

The complaint arises out of the defendants’ alleged procurement of McKillen’s social security number, and their “unlawful procurement and use of a credit report containing private, legally protected information regarding” McKillen.

It alleges that the defendants obtained McKillen’s credit report “under false pretences” and “for the purposes of exerting litigation and business pressure over and coercing” him. The complaint further alleges that Sir David and Sir Frederick Barclay, “in continuation of the pattern and practice already established in connection with” their ongoing litigation in the United Kingdom, unlawfully obtained McKillen’s private information “with the intention of intimidating and harassing” McKillen.

Hueston said: “This complaint alleges severe violations of the Fair Credit Reporting Act, including acts of deception to obtain this information for litigation advantage.”

In the UK, McKillen and the Barclays are awaiting a Court of Appeal ruling in a case heard in February.

The Barclay brothers have filed a High Court claim forcing the sale of shares in the hotels belonging to McKillen. His former partner, Derek Quinlan, has filed a similar suit. Both have been dismissed by McKillen as “complete nonsense”.

A spokesman for the Barclay family said: “This is the first we have heard of this action. If such a suit has been filed it would appear to be a claim with no foundation that we shall deal with, as we have with Mr McKillen’s previous claims.”

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