Hughes v Clewley (The “Siben”) - QBD (Admlty Ct)(Clarke 1) - 5 September 1995

Yachtowner agrees to exchange yacht and other items for a villa, discotheque and escort agency in Portugal - Whether agreement induced by fraudulent misrepresentations - Whether contract illegal - Whether rescission available - Measure of damages

In 1991 the plaintiff and the defendant came to an agreement whereby the plaintiff agreed to swap his 65 foot ketch Siben , a De Lorean motor car and a sum of money for a villa and a discotheque in Portugal said to have been owned by the defendant. One of the many issues between the parties was whether the agreement also provided that the plaintiff would receive an escort agency as part of the deal. The plaintiff said that he was induced to enter into the agreement by a number of fraudulent or negligent misrepresentations which were not true, and that the Court should order the rescission of the agreement in order that he could regain possession of the yacht.