Mediation News from Across the Pond
parties began mediation in hope of putting an end to the battle that could still make it to the Supreme Court by this July.
Justin Hemmes has invested nearly $20 million in the Cooggee project over the course of the last year. Hemmes is in the process of buying the Coogee Beach Palace Hotel from David Kingston. Hemmes is hoping mediation provides an injunction that prevents eviction. Kingston has been calling for Hemmes to vacate the property since January, when he fell behind on payments.
Eyes are on the Mediation
The dispute is expected to be the year’s most paid-attention-to society property dispute. Hemmes and Kingston are battling over ownership and equity relief. Kingston sold the Coogee Beach Hotel to Hemmes in run-down condition. The property was sold in a complex “put and call” two-year delayed deal. Problems began when Kingston terminated the call option and jeopardizing the deal.
Investment with Intention to Renovate
The property was sold to Hemmes for $5 million in March of last year. He agreed to pay an additional $32 million after two years. He would lease the building for $30,000 per week until that time. The well-known pub baron began the renovation project and invested an additional $13 million in the project.
Now he claims Kingston engaged in deceptive and misleading conduct in the deal. Kingston also raised concerns about Hemmes beginning the renovation project without council approval. The council stated Hemmes notified them of the work after the fact and paid the fine.