The high court battle over £400,000 of bonuses not paid by Erinaceous subsidiary Dunlop Haywards ended today.
David Kahn, former managing director of property consultant Dunlop Hayward, is suing the firm for bonuses based on the large amount of business he generated for the City of London valuation department in 2005.
He claims because of his ‘special ability’ to bring in clients he had agreed that for fees generated over £150,000 he would get 50% of the profit.
Dunlop Hayward denies this agreement and said he was allowed the standard bonus scheme which equates to 30% of fees from new clients over £150,000 which would be split between him and the company.
Erinaceous said he only generated £56,000 of new fees in 2005 and is therefore not entitled to any bonus.
The case involves clients and deals brought into the London City valuations department which was headed up by Ian McGarry who is currently being investigated by the Serious Fraud Office.
McGarry was arrested in March 2006 over claims he grossly inflated valuations on three deals.
The legal team for both sides will be in court tomorrow to give submissions to the judge.
The judge will consider and release a judgement following this.
It has been brought to our attention that the version of this article originally posted on our website could be interpreted so as to suggest a link between David Kahn and the matters under investigation by the Serious Fraud Office. We are pleased to confirm that we did not intend to imply such a link.