A millionaire aristocrat dubbed the “First Lady of Lloyd’s” is facing a High Court fight with a long-term friend who claims he is owed half of her £19 million Hilton Hotel.
Rona Delves Broughton, 80, struck a deal in 2009 to buy a former police accommodation building in Greenwich, with plans to “flip” the property and make a quick profit.
However, when the building could not be sold the leading underwriter at Lloyd’s, whose late husband was the Sir Evelyn Delves Broughton, transformed it into a four-star hotel. Lady Delves Broughton is being sued by fellow Lloyd’s underwriter Michael Blyth-Whitelock, 72, who claims he is owed a 50 per cent stake in the development.
Mr Whitelock, a long-term friend of Lady Delves Broughton, says he provided half the deposit when the old police section house was first bought, on the basis that the property would be sold on and they would split the profits.
“Mr Whitelock and Lady Delves Broughton agreed on a joint venture involving the acquisition of a piece of property for common benefit,” said Jonathan Hough QC, representing Mr Whitelock. “She has subsequently sought to retain the property solely for her own benefit.” However, Lady Delves Broughton says they took a high-risk “punt” that Mr Whitelock walked away from in 2010, only to return in 2017 when she had worked hard to develop the property into a hotel business worth £19 million.
Mr Whitelock says Lady Delves Broughton asked for his help in 2009 when she wanted to buy the Forties property for £5.5 million. Mr Whitelock says he provided half the deposit — £137,500 — “against the background of a long friendship,” said Mr Hough. But Lady Delves Broughton has countered that she paid for the whole deposit upfront, and Mr Whitelock was late in transferring £81,250 of his contribution.
A downturn in the market in 2008 meant they could not “flip” the building for a profit, and Lady Delves Broughton insists Mr Whitelock then abandoned the project. He claims he was not consulted as the building was converted into a hotel — now the Doubletree by Hilton London Greenwich — but believed he was entitled to half the profits and began pressing for a sale in 2017.
Mr Whitelock claims Lady Delves Broughton “disclaimed any financial obligation” to him at a meeting in February last year, sparking his claim to the High Court. “She has failed to act in good faith, by dealing with the property for her own sole benefit,” said Mr Hough.
But Lady Delves Broughton insisted Mr Whitelock had not mentioned his claim to a share of the property when they discussed it between 2010 and 2017. Jonathan Davey QC, for Lady Delves Broughton, accused Mr Whitelock of “misdescribing the nature of the arrangement entered into”.
“Both regard the arrangement as a ‘punt’ which was not guaranteed to make either a profit,” he said, adding that Mr Whitelock’s money made up just 2.5 per cent of the £5.5 million purchase price.
Mr Whitelock’s claim and Lady Delves Broughton’s defence have now been filed at the High Court.
