The Magic Circle Lawyer And The Saudi Lawsuit
Former Linklaters lawyer Ronald Gibbs is embroiled in a legal dispute with two Saudi royals.
Gibbs, who was earning around £2 million annually and is also an experienced yachtsman, is facing a lawsuit from Princess Reema Bint Sultan Bin Abdulaziz Al Saud and her brother, Prince Khaled Bin Sultan Bin Abdulaziz Al Saud over the management of investment funds.
Princess Deema’s legal claim alleges that Gibbs has still ‘not paid a penny’ of what he owes and is seeking an order for sale of his £4million house in London to satisfy the £2.2million interim damages and costs bill he currently owes.
The conflict began when Gibbs agreed in 2011 to manage a $25 million investment fund for Princess Reema, which he invested in various assets including shares in a boat-building company Gibbs controlled, a €3.3 million flat in Montenegro, and a £17 million superyacht named Elysium.
The Saudis accused Gibbs of failing to liquidate these assets and return their investment as requested in 2013.
In 2018, a settlement required Gibbs to sell these assets and repay the money but according to a report in The Times, Gibbs has failed to make the repayments.
Hence the lawsuit.
Simon Atrill KC, for the princess, said Gibbs had in 2018 agreed to liquidate the investment portfolio by selling the assets, but failed to do so.
After summary judgment was entered against him for breach of the agreement, he was ordered to pay £582,077.49 interim damages and £1.64million costs to the princess and her lawyers.
But by 2021,Gibbs (pictured above in more buoyant days) had still not liquidated the investments, the High Court heard, leading to the princess suing him for breach of the 2018 agreement.
The court imposed a worldwide freezing order on Gibbs’ assets and ruled that he had breached the agreement. The Saudi princess is now seeking a court order to sell Gibbs’ £4 million house in West London, bought in 2012, to cover the £2.2 million interim damages and costs from the previous ruling.
Gibbs is contesting this, claiming that the house is primarily owned by his former wife and children. He argued in court that his financial situation has deteriorated, living “hand to mouth” due to the freezing order, and no longer has control over the yacht or the Montenegro apartment.
The judge has reserved a decision on whether to force the sale of Gibbs’ house.
