Supermodel Elle ‘The Body’ Macpherson will no longer be proceeding with an appeal against a Manx court’s decision in a multi-million pound dispute, it has been revealed.
Australian-born Ms Macpherson, a regular on TV, was embroiled in a lengthy legal dispute which involved the Manx courts.
The actress, model and TV host was involved in a complex legal case.
In August 2012 it was reported the Privy Council had given the catwalk legend the chance to appeal against a Manx court’s decision in her dispute with the liquidators of the island’s Kaupthing bank.
Ruling
It was reported at the time she had a landmark ruling against the liquidators of the collapsed Kaupthing Singer &Friedlander bank overturned on appeal.
Liquidators of KSF (I0M) had brought a claim against her in the island’s High Court but her legal team won her case by invoking a novel argument based on a legal principle dating back 300 years. But in a twist to the story the appeal court overturned the judgment of Deemster Andrew Moran QC.
The liquidators had refused to offset the supermodel’s deposit with the now insolvent bank against money owed by her nominee company to the bank for a mortgage on a house in London.
Ms Macpherson set up an Isle of Man nominee company Light House Living Ltd in 2006, to allow her to buy the property, while keeping her address private.
Robert Colquitt of Cains Advocates confirmed to Business News that Miss Macpherson was no longer pursuing the appeal.
Mr Colquitt acted together with Lloyd Tamlyn (South Square Chambers, London) in respect of the Isle of Man court proceedings for Mike Simpson and Peter Spratt, of PricewaterhouseCoopers as liquidators of Kaupthing Singer &Friedlander (Isle of Man) Ltd.
Mr Colquitt said: ‘Subsequent to the Staff of Government Division [Isle of Man Appeal Court] decision, Ms Macpherson and Light House Living Limited obtained leave to appeal the case to the Judicial Committee of the Privy Council. However, that appeal is no longer being proceeded with.
‘The termination of the appeal process to the Privy Council now means that the legal position in the Isle of Man is as set out in the Staff of Government Division’s judgment.
‘The validity of the legal distinction between a company and its beneficial owner(s) remains intact.
‘In broad terms, absent fraud or other compelling circumstances, the Manx Courts will not treat a company and its beneficial owner as one and the same legal person.
‘The potential uncertainty that arose from the first instance decision of the Manx court, based as it was on notions of perceived equitable fairness, was replaced by a clear indication that, in situations involving set-off in an insolvency scenario, the Court should focus on the outcome of the transactions being considered, with a view to determining whether or not mutual debts arose from those transactions; the Court should not seek to subjectively determine where the Court considers the “substantial justice” lies between the parties.’
Mr Colquitt reiterated the background: ‘ On October 31, 2011 the Isle of Man Appeal Court (the Staff of Government Division) handed down its judgment and reasoning in relation to the litigation between the liquidators of Kaupthing Singer & Friedlander (Isle of Man) Limited, and Elle Macpherson and Light House Living Limited.
‘The Staff of Government Division overturned the decision of the first instance court.
‘The appeal decision confirmed that the liquidators of the bank, Mike Simpson and Peter Spratt of PricewaterhouseCoopers, were correct in refusing to offset Ms Macpherson’s cash deposit with the insolvent bank (approximately £2.54 million) against monies owed to the bank of approximately £7.8million by a company owned by Ms Macpherson, namely Light House Living Limited.
‘The Staff of Government Division considered that it could not be said, as a matter of law, that there was any debt due from Ms Macpherson (via her company) to the bank, which would allow her to set off the value of the monies standing to the credit of her account, against the monies owing by the company to the bank.’
The Body
Ms Macpherson is well known for her five cover appearances for the Sports Illustrated Swimsuit Issue beginning in the 1980s, leading to her nickname ‘The Body’.
She is also known for a series of business ventures, including Elle Macpherson Intimates, a lingerie line, and The Body, skin care products.