Wharf wins in battle over Marden deals

A former subsidiary of Wharf Holdings was yesterday cleared by appeal judges of making fraudulent misrepresentations, overturning a judgment that had left Wharf facing a bill for more than $700 million.

The court said the evidence in the epic case, one of the longest civil battles in Hong Kong's history, came 'nowhere near' to establishing that Wheelock Marden and Co had deliberately misled one of its creditors.

Robert Brothers, a former director of the company, was also unanimously cleared of the allegation.

After the hearing, Mr Brothers said: 'I have always been concerned about the unfounded attack on my integrity and I am naturally pleased at the findings of the Court of Appeal in my favour.' A Wheelock spokesman said: 'We are very pleased to note that this very long drawn out legal action, which emanated from events in 1983, before Wheelock Marden was acquired by us, has now come to a conclusion.' The court also ruled in favour of Wheelock Marden and former directors Mr Brothers, William Lees and Leung Hon-wah, who is now dead, in respect of claims that they had been responsible for fraudulent trading in relation to its subsidiary Wheelock Maritime International.

But this decision, which upheld a court ruling reached in March last year, was only by a majority of two judges to one.

Mrs Justice Doreen Le Pichon dissented and found that Wheelock Marden and the three former directors were responsible for taking loans from Danish company ADS when they believed there was a substantial risk they could not be repaid.