Gordon Ramsay faces massive bill after losing London pub rent court case

Gordon Ramsay has lost his High Court battle over being held personally liable for the rent on a London pub he bought.

The pub deal took place when his father-in-law Christopher Hutcheson was at the helm and helping him build his restaurant empire.

The superchef accused Mr Hutcheson in court of using a ghost writer machine, more commonly used by authors to sign books and photographs automatically, to forge his signature on a document which made him the personal guarantor for the £640,000 annual rent for the York & Albany pub near Regent's Park.

Mr Justice Morgan, sitting in London, refused to grant a declaration that the rental guarantee was not binding because Mr Ramsay's signature 'was not lawfully authorised' when the 25-year lease was signed in 2007.

The judge said: "I find that when Mr Hutcheson committed Mr Ramsay to the guarantee in the lease of the premises, Mr Hutcheson was acting within the wide general authority conferred on him by Mr Ramsay at all times until Mr Hutcheson's dismissal in October 2010."

The judge added: "Mr Ramsay may now regret the transaction in relation to the premises. He may particularly regret his involvement as a guarantor.

"He may consider that Mr Hutcheson did a bad deal. However, on any finding, he is not able to say that Mr Hutcheson exceeded his authority in any respect.

"I hold that Mr Ramsay, acting though his agent Mr Hutcheson, is bound by the guarantee in the lease of the premises."

Film director Gary Love, who owns the York & Albany, had described 48-year-old Ramsay's legal challenge as an 'absurd' attempt to wriggle out of his rental commitments.

Ramsay - the star of several TV food programmes including Hell's Kitchen - had told the judge he felt 'like a performing monkey' while building his multi-million-pound culinary empire, with Mr Hutcheson managing his business.

His wife, Tana, said in evidence that the discovery that her father and brother were 'systematically defrauding' her husband was 'extremely distressing'.

Mrs Ramsay, a close friend of Victoria Beckham, said she was aware of the use of the ghost writer machine, which enabled other people to reproduce her husband's signature electronically, but thought it was for signing merchandising when her husband was unavailable.

She added: "It did not even occur to me that the machine might be used to sign Gordon's signature on anything else."

Mr Hutcheson acted as business manager for the Ramsay group of companies until the chef sacked him and Mrs Ramsay's brother, Adam, on the grounds of 'gross misconduct' in 2010.

Tana married Ramsay in 1996 and has four children with him. In court she spoke about her 'dominating, very clever' father.

She recalled 'the shock on Gordon's face' and the horror and disbelief when the couple's solicitor, Larry Nathan, of law firm Mishcon de Reya, told her husband that the lease for the York & Albany included a personal guarantee from him for 25 years.

The judge refused Ramsay permission to appeal against his decision, but Ramsay can still ask the Court of Appeal itself to hear his case.

He now faces a heavy legal costs bill. It is understood that Mr Love, who opposed Ramsay's legal challenge, is claiming around £600,000 following Ramsay's defeat.

The judge ordered Ramsay to make an interim payment to Mr Love of £250,000 pending final settlement of the bill.

Ramsay also faces a large bill from his own lawyers which is likely to take his total pay-out to over £1m.


Patrick McLennan

Patrick McLennan is a London-based journalist and documentary maker who has worked as a writer, sub-editor, digital editor and TV producer in the UK and New Zealand. His CV includes spells as a news producer at the BBC and TVNZ, as well as web editor for Time Inc UK. He has produced TV news and entertainment features on personalities as diverse as Nick Cave, Tom Hardy, Clive James, Jodie Marsh and Kevin Bacon and he co-produced and directed The Ponds, which has screened in UK cinemas, BBC Four and is currently available on Netflix. 

An entertainment writer with a diverse taste in TV and film, he lists Seinfeld, The Sopranos, The Chase, The Thick of It and Detectorists among his favourite shows, but steers well clear of most sci-fi.