No fraud, no dishonesty and no conspiracy - Court grants declarations sought by Withers' clients

The Commercial Court has rejected the Secretariat of State of the Holy See’s allegations of dishonesty, fraud and conspiracy and granted the vast majority of the declarations sought by Withers on behalf of its clients Raffaele Mincione, WRM Capital Management and Athena Capital (the Claimants), arising out of the sale of a real estate project at 60 Sloane Avenue, London, to the Vatican in 2018. 

In a final judgment after a 17-day trial last year, the Hon Mr Justice Robin Knowles CBE granted the Claimants declaratory relief confirming the validity and lawfulness and other aspects of the 2018 transaction whereby the Secretariat acquired the entirety of the commercial interests in the landmark property at 60 Sloane Avenue in Chelsea, London. 

The Court held (at para 242): “The Claimants also have the benefit of a number of findings in this judgment, not the subject of the declarations sought, which reject very serious allegations levelled against them. Here I have been able to, and have taken the opportunity to, deal with particular allegations, including particular allegations of dishonesty and particular allegations of conspiracy. The Claimants are entitled to those findings in relation to those allegations.”

Despite criticisms relating to what was said during negotiations in 2018 regarding valuation (but critically not held to be a misrepresentation), this represents substantial vindication for Withers' clients.

This is thought to be the first time that the Vatican has appeared before an English court after the Secretariat failed in its challenge to the jurisdiction of the English court (Athena Capital Fund Sicav-Fis SCA & Ors v Secretariat of State for the Holy See [2021] EWHC 3166 (Comm) (26 November 2021); [2022] 1 WLR 1389) and also, on appeal (Athena Capital Fund SICAV-FIS SCA & Ors v Secretariat of State for the Holy See [2022] EWCA Civ 1051 (26 July 2022); [2022] 1 WLR 4570), in overturning a stay granted by the High Court which enabled this case to proceed to trial. 

The judgment can be found here.

Withers partner, and CEO of its Dispute Resolution Division, Peter Wood, commented: "This is a major victory for Raffaele Mincione, WRM and Athena Capital, vindicating their long battle to reject very serious allegations made by the Vatican in these and other proceedings."

The Withers team was led by Peter together with special counsel Caroline Thompson, senior associate Julia Filippova, associate Chloe Flascher and paralegal Alessia Moruzzi.  The Withers team instructed Charles Samek KC (Littleton Chambers), Tetyana Nesterchuk (Fountain Court) and Blathnaid Breslin (Littleton Chambers).