The Big Motoring World High Court case came to a head this morning with a 499-page judgement handed down.
Mr Justice Marcus Smith found that Mr Waddell was excluded from Big Motoring World and that his holding company, Peter Waddell Holdco, was unfairly prejudiced by the conduct of Freshstream.
The Judge said: “I have found the formation and execution of a pre-conceived and orchestrated plan which worked backwards from Freshstream’s aim of achieving permanent control of, and Mr Waddell’s removal from, the business without having to exercise the Call Option”.
He went on to hold that this amounted to unfair prejudice.
The Judge accepted Big Motoring World’s argument that it was entitled to summarily dismiss Waddell as its CEO for gross misconduct. His claim against Big Motoring World for wrongful dismissal has therefore failed.
“A representative of Big Motoring World commented: “We are glad that the Court has determined that Big Motoring World was entitled to remove Mr Waddell as its CEO.
Justin Michaelson of Quinn Emanuel representing Waddell said: “This judgment should serve as a salutary lesson to private equity funds & their investors who believe they can manoeuvre against portfolio companies in this way behind closed doors and expect the courts to overlook it.”
Another court hearing will now be required to decide the final legal remedies and consequences of the judgment.
