The trial for a businessman’s $88m lawsuit against his former legal team from Clyde and Co along with two XXIV Old Buildings barristers gets under way at the High Court.
As one legal judgment noted, Riad Tawfiq Al Sadik is a “very wealthy” businessman that owns the largest construction and engineering company in the United Arab Emirates (UAE)
Al Sadik, who is Dubai-based, sold 45 per cent of his shares in Al Habtoor Engineering Enterprises in 2007 for AED1.2bn. He turned to investing in a hedge fund strategy with Investcorp Bank, he decided to invest AED500m ($136m) into a special purpose vehicle with Investcorp in March 2008, shortly before the global financial crisis.
Al Sadik went on to make a number of allegations against Investcorp, including that Investcorp had fraudulently misrepresented the nature of the investment and had acted without authority and in breach of trust.
The litigation he took against Investcorp spanned more than 10 years in the Cayman Islands, Privy
Council, and Dubai, with litigation proceeding in England & Wales as well as potentially offshore (including in the BVI).
After the unsuccessful litigation brought against Investcorp, Al Sadik went on to issue claims of professional negligence against his former legal team.
He filed the claim in June 2021 to the English court against Clyde and Co, Michael Black KC and Marcus Staff of XXIV Old Buildings and offshore law firm Harney Westwood and Riegels.
The trial commenced today (Monday) at the Rolls Building in front of Sean O’Sullivan KC, who is sitting as a judge of the High Court. The court will hear arguments as to whether there was any negligence, causation and damage, with a split trial on limitation and lack of causation.
Al Sadik has instructed City-based law firm Keystone Law to bring the English action.
For defence, Clyde and Co have called on RPC, while the two barristers brought in DAC Beachcroft and the offshore firm has Mishcon de Reya.