High Court Dismisses All Claims Against Bernie Ecclestone and The Ecclestone Family Trust

10/03/14

In a judgment handed down on 20 February 2014, Mr Justice Newey rejected all of the Claimant’s claims against Mr Ecclestone, Bambino Holdings Ltd (one of the Ecclestone family trust companies) and Mr Stephen Mullen’s, the trust’s former legal advisor.

The Claimant, Constantin Medien AG brought proceedings against Mr Ecclestone, Mr Mullens and Bambino alleging that the defendants were all parties to a fraudulent conspiracy with the fourth defendant, Dr Gerhard Gribkowsky. Constantin alleged that the first three Defendants had conspired to bribe Dr Gribkowsky to ensure that, in 2005/6, Bayerische Landesbank sold its substantial interest in Formula One to CVC Capital Partners without conducting a proper process of valuation and marketing, with the result that the bank’s interest was sold at a substantial undervalue, causing loss to Constantin.

Mr Justice Newey rejected all of the claims. He held that, although Mr Ecclestone and Mr Mullens had been party to a corrupt bargain, Bambino Holdings and its directors were not and had known nothing about it. Moreover, it was no part of Mr Ecclestone or Mr Mullens (or Bambino’s) purpose that the bank’s shares should be sold at an undervalue. Each believed that the shares were sold for their full value and, in any event, none of Mr Ecclestone, Mr Mullens or Bambino had any knowledge of the Claimant’s interest in the proceeds of the bank’s sale and none had any intention to injure the Claimant. Accordingly, the claims all failed under both German and English law.

The judgment is here.