COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE HIGH COURT
OF JUSTICE CHANCERY DIVISION
(MR JUSTICE LADDIE)
(MR JUSTICE BLACKBURNE)
Strand London WC2 Thursday, 13th December 2001 |
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B e f o r e :
LORD JUSTICE CHADWICK
-and-
LORD JUSTICE TUCKEY
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ANGELO PEROTTI | ||
Appellant | ||
- v - | ||
(1) KENNETH CORBETT WATSON | ||
(2) PENROSE MARGARET HELEN FOSS | ||
(3) CATHERINE HUDSON |
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MR C SEMKEN (instructed by Barlow Lyde & Gilbert, Beaufort House, 15 St Botolph Street,
London EC3A 7NJ) appeared on behalf of the Respondents.
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Crown Copyright ©
"There is really no doubt what all this means. Mr Perotti was saying that he had substantial assets, including Ivor Court; that anyone could have discovered that that was the truth; and that his evidence, or the evidence he was prepared to show the Court of Appeal alone, would prove the matter. Nowhere in any of this is there the slightest hint that any assets in his name belong beneficially to his mother or daughter."
"I have considered the documents, the affidavits and the oral testimony. I have considered very carefully the submissions made to me. I have paid close attention to the 34th affidavit of Mr Perotti [that was a 49-page affidavit which Mr Perotti had sworn on 3rd September 1999, several days, therefore, before the last day of the hearing before Laddie J]. I have no doubt whatsoever that the assertion that Mr Perotti held Ivor Court for and on behalf of his daughter is wholly untrue. It was asserted for the very first time on 24th June 1999, after the freezing order was made. It was concocted so as to enable Mr Perotti to put assets beyond the reach of Mr Watson, so that most of the costs of these actions fall to be paid by the estate, thereby depriving other beneficiaries of their inheritance. The story has been persisted in for the purpose of continuing to frustrate Rimer J's freezing orders and to dishonestly resist this application for committal."
"On this, as in relation to Ivor Court, I have no doubt at all that Mr Perotti's recent evidence is completely untrue. As with Ivor Court, Mr Perotti has invented this story for the purpose of preventing any of his money getting into the hands of Mr Watson."
"The penalties potentially are so severe that these applications must be approached as if they were criminal proceedings. That is a point I have had to bear in mind particularly clearly in this case because Mr Perotti has chosen to represent himself. I say 'chosen' because that appears to be the accurate word. Mr Perotti was granted emergency legal aid in relation to the initial stages of the contempt applications. Solicitors and counsel were instructed. Mr Perotti has disclosed what happened in his 32nd affidavit. Apparently he did not like the advice which he was given as to what the consequence would be if did he not purge contempt, if contempt had been committed. Counsel's gloomy prediction was not acceptable to Mr Perotti. He considered his lawyers to be, to use his words, 'a Trojan horse'. His evidence on that matter ends as follows."
"Finally, I insisted that they follow my instructions and argue my case that I never breached the said order and therefore I was not in contempt. Counsel flatly refused to accept my instructions saying she has a duty to the Legal Aid. I left saying that they had refused to follow my instructions. I unhesitatingly and absolutely without reservation accuse the said lawyers of acting in the interests of the [Solicitors Indemnity Fund] and/or Mr Watson et al. Someone, sometime must surely do something about these crooked lawyers who flagrantly intend perverting the course of justice without the slightest concern for their clients."
"Mrs Perotti gave evidence touching on [the brother's] alleged intention as to the beneficial ownership of 64 Ivor Court. She also gave evidence on the issue of whether Mr Perotti held assets on trust for her. Mrs Perotti struck me as a rather timid lady who wore her 82 years wearily. Her affidavit evidence had been drafted for her by her son. It was apparent that she was completely dominated by him. When, under cross-examination, Mrs Perotti gave evidence which Mr Perotti did not like, he announced his disapproval in a loud voice. He interrupted her to say she was really confused. At one point he shouted out that she was in the early stages of senility. Mr Perotti's re-examination of her consisted of a string of statements consistent with his case, followed by a request, or demand, for her to agree which, of course, she did. He told me this was the only way to get meaningful answers out of her. His own categorisation of his mother was as follows:
'My mother is 82 years old. She is not educated. She is not exactly a bright spark. She may be at the early stages of senile dementia.'
I did not find much of Mrs Perotti's evidence of assistance. Whether true or false, she would have said whatever her son demanded of her."
"Ida Perotti's evidence as to oral words or imposition of a trust was clearly unreliable."
"I had a power of attorney over all my brother's affairs before he died on 20-6-1991. Since there was no difference in my authority as attorney or Executor of his estate I continued to pay his mortgage as attorney. I am the sole Executor and beneficiary of my brother's estate. However, as I wish to save on Inheritance Tax I intend disclaiming my inheritance some time in the future. In the meantime I own the said flat as Executor."
"I have always let the flat myself and have had no problems. I continue to keep doing so. Please process my application without delay."
"None of this contains any suggestion that Ellen had, or was likely to get, the totality of the beneficial interest in [the brother's] estate. It says the property is his and his only concern is to divest himself of it at some time in the future to avoid Inheritance Tax. When cross-examined on this correspondence Mr Perotti said rhetorically, 'Why should I tell other people about the arrangements with my brother?' He also said, 'If I was applying for a loan, of course I told them the flat was mine.' Mr Perotti made the same point on a number of occasions during his oral evidence."
"What that amounts to is this. He was saying that if he told the lender that he did not own the property and that it was owned entirely beneficially by his daughter, or would be, they would not make a loan. No doubt if he had said that to the lender, that would have been its reaction."
"Mr Perotti wishes to make it clear that there are other arguments which he wishes to put forward, so this skeleton does not deal with all the points which may arise on these appeals."
"...and of course Mr Perotti will explain how he in fact had a strong case..."