JD CLASSICS

[Chris_R]

Reported on Wilmots Litigation website:

Mr Michael Tuke instructed Michael Grenfell to institute multiple proceedings against J D Classics Ltd and Derek Hood the first case of which (against the Company only) was concluded successfully on the 18th of April 2018.
In 2009 Mr Tuke sold his highly successful business, and had £40m to invest in Classic Cars.
He instructed Mr Derek Hood of J D Classics Ltd as a professional advisor and his agent for buying and selling cars on his behalf. Mr Hood advised him that he could double his money.
Over the next few years Mr Tuke bought and sold some 41 classic cars on the advice of Mr Hood, and, at a time when the values of classic cars was increasing, suffered catastrophic losses which nearly bankrupted him.
Mr Hood on behalf of J D Classics Ltd denied that he was Mr Tuke's agent, or that he should produce any documents to explain fully and transparently details of the various transactions.
After we carried out detailed enquiries and analysis of thousands of documents, we issued proceedings against J D Classics Ltd to have that issue decided. Subsequently three further sets of proceedings were issued against J D Classics Ltd, in two of which fraud and deceit are alleged against both the Company and Mr Hood, and similar allegations are being added to the third claim. Some 18 cars are involved.
The Agency case was decided in Mr Tuke's favour as mentioned above. Although not part of that case the Judge nevertheless observed that Mr Hood had been guilty of deliberate and dishonest conduct in relation the the sale of an XKSS on Mr Tuke's behalf.
The other three cases are to be consolidated and heard at a later date.
The Approved Judgment is available below.

We instructed Sean Brannigan QC and Alex Wright, both of 4 Pump Court chambers, to represent Mr Tuke in court.

This case illustrates how important it is for both dealers and customers to establish at the start of a relationship exactly what that relationship is, and to confirm it in writing. An agent has a duty of absolute fidelity and openness to its principal and must not make a secret profit at the principal's expense.

http://www.wilmotslitigation.co.uk/site ... Tuke_0.pdf" onclick="window.open(this.href);return false;

Note: Michael Grenfell is Senior Partner with Wilmots Litigation.

[Keith]

It was in The Telegraph, 19th March:

https://www.telegraph.co.uk/news/2018/0 ... -claiming/" onclick="window.open(this.href);return false;

[Chris_R]

The Telegraph report was only that there was a case in the High Court. The link I provided contains the full 42 page judgement from Mr Justice Lavender.

[Barrie]

Good grief!
I've just finished reading through the Judgement.
A) I admire the intellectual effort required by the judge to pull together all the pieces
B) Mr Hood appears to be in considerable trouble.

How do we protect ourselves from such practices?

[AH1951]

Good grief!

How do we protect ourselves from such practices?

How about buying from a recognised Jensen specialist?

Then you won't get Hoodwinked.

[Joerg]

Amazing figures that have been paid for some of the cars.
Interesting to read in the judgement that the way the business was done seems to be the same like any back yard used car dealer is operating - only the ammount of money involved is significant higher

[Jens]

A similar case in Germany a few years ago led to a 6-years sentence.

English article here:

https://www.skwschwarz.de/en/news/artic ... tail/News/" onclick="window.open(this.href);return false;

[Mr.Mini]

Full story & details here :

https://www.pistonheads.com/gassing/top ... &t=1731962" onclick="window.open(this.href);return false;

When the s..t hits the fan , get out of the room ... I would say

H

[Jens]

a very interesting 42 pages read. I wonder how that system really worked (or still works).

If I read the findings correctly cars were sold but kept in the premises of JD, only an exchange of owners, sometimes cars "belonged" to several people at the same time (but only JD knew), sometimes JD owned the cars themselves without having any customers at all.

And these cars were always raced at Goodwood, Monaco etc. at the expense of the current owner (like this year in Goodwood by Mr. Button).

It seems to be an interesting business model and sheds some light on this branch.

[Chris_R]

One of the peculiarities of the UK system is that car ownership is not officially recorded or registered anywhere.
The vehicle registration document records the vehicle keeper which is not necessarily the same as the vehicle owner. The vehicle keeper is the person who is responsible for the car and is (normally) the primary user of the car.

[Jens]

Chris, who is the „primary user“ of a race car?

The diver?

The keeper?

The owner?

[Keith]

Chris, who is the „primary user“ of a race car?

The diver?

The keeper?

The owner?

In this case, probably the diver.

[Jens]

Sorry, always read again before sibmitting.

[Chris_R]

Chris, who is the „primary user“ of a race car?

The diver?

The keeper?

The owner?

Most race cars are probably not registered with the DVLA and therefore the DVLA (and the State) has no interest in them.

[Chris_R]

Reported here: https://www.autoclassics.com/posts/news ... nistration" onclick="window.open(this.href);return false; that JD Classics have gone into Administration after reported "financial irregularities".
Report text reproduced:

JD Classics has gone into administration following ‘financial irregularities,’ according to Alvarez & Marsal Europe LLP. The business and assets are reportedly up for sale, with A&M announced as administrators to the Essex-based restoration firm renowned for historic racing and the sale of high-end classic cars.

Managing directors at A&M – Mark Firmin, Richard Beard and Richard Fleming – were appointed to JD Classics Limited, which has no less than 60 employees. The administrators have stated that the existing situation has come about as a result of investigations into a number of 'historical financial irregularities'.

The current inventory includes more than 110 vehicles comprised of Aston Martins, Ferraris, Jaguars and Maseratis, to name only a few. JD’s vehicular stock is showcased in a flagship 150,000 square foot London showroom on 26 Mount Row, Mayfair.

The individuals involved in the 'financial irregularities' left the business in June of this year, at which time a new management team was put in place. ‘Considerable progress’ was reportedly made in stabilising the business and improving operations.

Original CEO Derek Hood was replaced by Jean-Marc Gales, the former chief executive of Lotus. Gales is said to have identified several potential cost savings and growth opportunities. However, A&M are now searching for new investors.

Mark Firmin, of A&M, said: "Whilst JD Classics has now entered administration, the business continues to trade. We are hopeful that a sale can be achieved in the next few days, ensuring the ongoing employment of the workforce."

The company benefits from an outstanding collection of cars, a bespoke restoration facility and a team of world class craftsmen and engineers. We have informed employees about the process today and will continue to keep them updated on developments. We are grateful for their hard work and support during this time."

We will be contacting customers, creditors and parties with cars currently being restored or situated at the premises over the next few days."

JD Classics pulled out of running any of its cars at this year's Goodwood Revival. Jensn Button's debut appearance was therefore also cancelled as he was due to drive a JD Classics car. I've seen a report that he may also sue for loss of appearance fee.