‘Smooth’ Watson ordered to unveil wealth
Rich-Lister Eric Watson has been ordered to lay bare his fortune to former business partner Sir Owen Glenn after losing a legal battle that will cost him at least $50 million.
In a British High Court ruling obtained by Stuff, Justice Nugee ordered Watson to make an interim payment of £25.3 million (NZ$50m) to Glenn’s company Kea Investments by 4pm Thursday, London time.
In the ruling, dated September 11, Watson was also ordered to hand over years’ worth of personal wealth details, and to pay Kea Investments £3.8m to cover 90 per cent of the legal costs that mounted up as part of a 12-week long High Court case heard in London this year.
A cancer-stricken Glenn and Kea Investments brought proceedings against Watson, and five other defendants, in relation to hundreds of millions of dollars Watson and Glenn put into a joint European property venture called Spartan Capital.
Justice Nugee said two loan agreements totalling £129m set out between Kea Investments and Watson and paid to Spartan Capital were void. Nugee said this had been repaid to Kea Investments, and it was entitled to claim proceeds from the £129m.
Kea was also entitled to a maximum compensation of £43.5m from Watson, the judgment said.
Watson was ordered to provide Kea Investments with an affidavit detailing all his assets worldwide exceeding US$100,000 (NZ$150,000) in value as well as all assets exceeding US$50,000 in value held directly, or indirectly, by Watson’s trusts.
He must also provide Glenn with asset statements, cash availability and bank statements on personal and trust accounts dating back years.
In a statement released on Monday, Glenn said he would pursue Watson ‘‘to the ends of the earth’’ to recover every penny awarded.
In July Justice Nugee handed down his 207-page ruling in which he said he was ‘‘completely satisfied’’ that the ‘‘smooth’’ and ‘‘charming’’ Watson ‘‘resorted to deliberate deception’’.
Watson has indicated he will not go to the Court of Appeal.
Watson’s holding company, Cullen Group, is also challenging allegations that it owes the Inland Revenue Department $60m in tax.