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Baron's ex-lawyer cannot be forced to testify in Bermuda hearing, court told

A former lawyer for Baron Hans Heinrich Thyssen-Bornemisza cannot be forced to give evidence in a hearing in Bermuda or the United Kingdom, the Court of Appeal heard yesterday.

Lawyer Nicholas Patten, who is representing the corporate defendants -- Favorita Holdings Limited, Thybo Trustees Limited, and Tornabuoni Limited -- claimed Sir Timothy Lloyd, the baron's former lawyer, cannot be forced to give evidence in a Bermuda court.

Sir Timothy acted as the legal advisor for the baron during 1986 and 1993. The Bermuda Court of Appeal is hearing arguments that the baron is refusing to give up Sir Timothy's documents. The baron claimed these documents were privileged communications. The documents relate to advice given by Sir.

Timothy to the baron and his fifth wife Carmen (Tita) on the couple's art trust. Sir Timothy, now an English High Court judge, was expected to give oral evidence in England.

However, Mr. Patten said that legislation both here and in England prevented Sir Timothy from being compelled to give evidence in any upcoming civil suit.

Mr. Patten said that solicitors in London for the judge had indicated he was reluctant to give evidence. This may be due to Sir Timothy's reluctance in getting caught in any dispute over privileged documents with the parties, said Mr. Patten.

This meant that any evidence given to Sir Timothy would have to be under subpoena, Mr. Patten added.

Sir Timothy, if he gives evidence, may object to answers which make references to the advice he gave to the baron and baroness, Mr. Patten said.

He added the Court of Appeal had to determine what was the relationship between the couple and their lawyer -- since the baron was claiming the documents were privileged. The preliminary hearing continues today.

The following is a synopsis of the case: Baron Hans Heinrich Thyssen-Bornemisza, one of the world's leading art collectors, is trying to wrest control of a $2.7 billion fortune from the Thybo Trustees Ltd., whom he put in control of a Bermuda-based trust in 1983.

The trust's main asset is Thyssen-Bornemisza Group, an industrial conglomerate that earned $100 million last year. The baron is attempting to dissolve the trust, claiming that since 1995 his son has not paid him the full 40 million Dutch guilders a year that was agreed on.

The arrears now amount to about $70 million, the baron's lawyers say. For the past year, all the disputes preliminary to the actual case have been fought in private hearings in a judge's chambers. Preliminary disputes over evidence is now before the Court of Appeal. Baron Thyssen-Bornemisza, 78, a citizen of Switzerland, is married to Spanish beauty queen Carmen. In 1993 he sold his art collection, one of the world's largest then in private hands, to the Spanish government for $350 million. The collection is housed in Madrid in the Thyssen-Bornemisza Museum and might become part of the dispute if the Bermuda trust is dissolved. The trust's beneficiaries are Georg Thyssen-Bornemisza, chief executive officer of the Thyssen-Bornemisza Group, and the baron's four other children, and an adopted son. The trust was set up to keep the industrial conglomerate together and avoid disputes over inheritance.

The case is expected to begin later in 1999 and last for up to a year.

Nicholas Patten QC, representing corporate defendants