HRH Prince Alwaleed Bin Talal & Kingdom Holding Company Announce Historic Legal Victory in UK Supreme Court

  HRH Prince Alwaleed Bin Talal & Kingdom Holding Company Announce Historic
                      Legal Victory in UK Supreme Court

Landmark Ruling Strengthens Ethical Business Standards, Allowing KHC to Recoup
Funds for Shareholders

PR Newswire

RIYADH, Saudi Arabia, July 17, 2014

RIYADH, Saudi Arabia, July 17, 2014 /PRNewswire/ -- Kingdom Hotels
International (KHI), which is owned by Kingdom Holding Company, chaired by HRH
Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, has been vindicated in a
historic legal decision by the Supreme Court of the United Kingdom.The
landmark ruling, dated July 16, 2014, upholds the right of KHI and its
co-investors in FHR European Ventures LLP, to recoup hidden and undisclosed
financial payments that were received by Ramsey N. Mankarious' company, Cedar
Capital Partners LLC, in connection with the sale of the Monte Carlo Grand
Hotel in Monaco. In a unanimous decision, the UK Supreme Court established,
once and for all, the English law on the full extent of the liability of
agents who breach their fiduciary duties, which had been an unresolved issue
for nearly two hundred years.

Prince Alwaleed stated, "This decision affirms my strong belief in transparent
and ethical business practices and the importance of pursuing remedies all the
way to the highest courts in order to punish any deviation from such
commercial standards." Prince Alwaleed added, "I personally believe that the
behavior here was so egregious that one must aggressively pursue it by all
available legal remedies in order to strengthen international corporate
conduct."

Based upon this definitive legal ruling by the UK Supreme Court, Prince
Alwaleed will now lead FHR European Ventures LLP, in pursuing Mr. Mankarious
personally to disgorge the proceeds of the undisclosed fee that he received
personally as well as Cedar Capital LLC, for all legal costs owed.

Background

The lawsuit originally was filed on behalf of FHR European Ventures LLP – a
joint venture of Kingdom Hotels International and two other investors. The
lawsuit sought recovery of a €10 million "secret commission" wrongfully gained
by Cedar Capital Partners LLC (whose founder and CEO is Mr. Ramsey
Mankarious), at the expense of the shareholders of FHR European Ventures LLP
during its purchase of the Monte Carlo Grand Hotel in Monaco. After the first
instance trial in 2011, the court ruled in favor of FHR on the question of
liability in a judgment against Mr. Mankarious and his companies. However, on
the question of remedy, the judgment only required Cedar Capital Partners LLC,
to repay the secret payments even though the company had become insolvent.

Prince Alwaleed then ensured that FHR took its claim to the English Court of
Appeal to seek a more effective remedy that would increase its chances of
recovering the funds on the basis that Cedar Capital Partners LLC, which was
insolvent at the time, had received the funds "on constructive trust" for FHR,
thereby enabling Prince Alwaleed and his co-investors to pursue Mr. Mankarious
and anyone else who had received any of the €10 million "secret commission"
from Cedar Capital Partners LLC. The Court of Appeal agreed with Prince
Alwaleed's argument and granted the appeal in early 2013, effectively ruling
the original judgment could be enforced against anyone who subsequently
received any part of those monies, including Mr. Mankarious.

The UK Supreme Court upheld, in a 7-0 unanimous decision, the right of Kingdom
Hotels International and its fellow investors to pursue anyone who had
received part of the proceeds of the "secret commission" (including Mr
Mankarious) based on the fact that his company, Cedar Capital Partners LLC,
held that money for them on constructive trust. As a result of Prince
Alwaleed's efforts, the Supreme Court has now definitively clarified the
consequences that flow from a breach of duty by an agent to his principal.

Founded in 1980, KHC is a publicly traded company which was listed on Tadawul
(the Saudi Stock Exchange) in 2007. KHC is one of the world's most successful
and diversified business organizations, highly respected in the field of
investments and recognized as an elite player in the Arabian Gulf region, and
internationally. The Company is recognized as one of the largest foreign
investors in the United States. KHC's portfolio has its major interests in
investment categories ranging from luxury hotels management hotel companies
(Four Seasons Hotels and Resorts, Fairmont Raffles Holding Intl and Movenpick
Hotels, Resorts AG and Swissotel) and real estate (Kingdom Tower and project
in Jeddah and Kingdom Riyadh project) to hotel real estate investments such as
(The Plaza, New York, Savoy Hotel, London and Four Seasons, George V Hotel,
Paris and other hotels). KHC also has investments in Petrochemical (Tasnee)
Media and Publishing (News Corporation and Saudi Research and Marketing
Group), as well as in Entertainment (Euro Disney S.C.A). In addition, Finance
and Investment services (Citigroup), Social Media and Technology (Twitter and
Jingdong). Moreover, the Company has investments in Education (Kingdom
Schools), Health Care (Medical Services Projects Company), Aviation (NAS Saudi
Arabia) and Agriculture (Kingdom Agricultural Development Company - KADCO
Egypt).

For more information contact:
Kingdom Holding Company
Intisar Al-Yamani
-211-11111+966-1
www.KINGDOM.com.sa
Media@kingdom.com.sa
Twitter: @Kingdom_KHC 



SOURCE Kingdom Holding Company (KHC)

Website: http://www.KINGDOM.com.sa
 
Press spacebar to pause and continue. Press esc to stop.