A millionaire ‘magic circle’ lawyer who sailed the seas on a £17million superyacht faces losing his £4million London house after being sued by a Saudi princess.
Ronald Gibbs has been locked in legal ‘warfare’ with the Saudi royals after agreeing to set up and manage a $25million investment fund for Princess Deema Bint Sultan Bin Abdulaziz Al Saud in 2011.
Over subsequent years, the former Linklaters partner sank the money into shares in a boat-building company he controlled, a €3.3million apartment in Montenegro and a £17million 40-metre superyacht, which he himself sailed, the High Court heard.
Mr Gibbs and the Saudi royals reached a settlement agreement in 2018, under which he was obliged to begin selling the assets and return the princess’ investment.
Princess Deema is now suing him, claiming Mr 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.
Mr Gibbs claims most of the beneficial interest in the house which he bought in 2012 is owned by his ex-wife and children.
Ronald Gibbs (pictured outside London’s High Court) has been locked in ‘warfare’ with the Saudi royals after agreeing to set up and manage a $25million investment fund for Princess Deema Bint Sultan Bin Abdulaziz Al Saud in 2011
Princess Deema is now suing him, claiming Mr Gibbs has still ‘not paid a penny’ of what he owes and is seeking an order for sale of a £4million London house (pictured) to satisfy the £2.2million interim damages and costs bill he currently owes
The former Linklaters partner sank the money into shares in a boat-building company he controlled, a €3.3million apartment in Montenegro and a £17million 40-metre superyacht, (pictured) which he himself sailed, the High Court heard
The court heard that Mr Gibbs was an asset finance lawyer who rose to become a partner at Linklaters, one of the prestigious top five ‘magic circle’ London commercial legal firms.
Independently, he agreed to manage the $25million investment pot handed to Princess Deema by her father, former Saudi defence minister Sultan bin Abdulaziz, on his death in 2011.
The money was ultimately invested in a swish apartment at the Regent Hotel in Porto, Montenegro, superyacht company Silver Arrows Marine Limited and a £17million customised 40-metre Sunseeker 131 superyacht, named Elysium after the abode of the blessed dead, a fictional realm of ideal happiness from Greek mythology.
The company, whose past projects have included collaborating with Mercedes Benz on a unique yacht based on the lines of one of their cars, is controlled by experienced yachtsman Mr Gibbs, who has also taken the helm of Elysium.
Princess Deema and her brother HRH Prince Khaled Bin Sultan Bin Abdulaziz Al Saud have now complained that Mr Gibbs failed to liquidate the assets and return the princess’ millions after being first asked to do so in 2013.
Simon Atrill KC, for the princess, said Mr Gibbs had in 2018 agreed to liquidate the investment portfolio by selling the assets, but failed to do so.
After summary judgement 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, he had still not liquidated the investments, the High Court heard, leading to the princess suing him for breach of the 2018 agreement.
That same year, Mr Gibbs was hit with a worldwide freezing order and in May 2022 had judgement entered against him in relation to breaching the settlement agreement.
Mr Atrill is now asking High Court judge John Linwood to force Mr Gibbs to sell a £4million house in Kings Road, Richmond, and pay off the bills with the proceeds.
Money was also invested in a swish apartment at the Regent Hotel in Porto, Montenegro
He told the judge Mr Gibbs has ‘never repaid a penny’ of the money despite ‘accepting his obligation to do so…and having the means to do so’.
In relation to the property at the centre of the claim, he continued: ‘In 2021, Mr Gibbs said – including by way of sworn affidavit and through his solicitors – that he owned the property 100 per cent beneficially.
‘Mr Gibbs, an experienced solicitor, now seeks to deny that this is what he really meant.
‘On 6 October 2022, four days before the hearing of the application to make final the interim charging orders on the property, Mrs Gibbs – Mr Gibbs’ wife from whom he has been separated since 2006 – emailed Princess Deema’s solicitors to assert that, on the day that Mr Gibbs purchased the property in 2012, he granted a 50 per cent beneficial interest to Mrs Gibbs and a 25 per cent beneficial interest to their three children.
‘Three days later, Mrs Gibbs circulated photographs of that purported declaration of trust, dated 12 July 2012. At the hearing the following day, Mr Gibbs stated that he has at best a 25 per cent beneficial interest in the property.
‘This has now become Mr Gibbs’ case in these order for sale proceedings.’
The barrister said that Mr Gibbs and his ex, who has been joined as a defendant in the case, ‘were asked to produce the original version of the purported declaration of trust…in order that it could be submitted for expert analysis in circumstances where its authenticity was disputed.
‘However… the document was then mysteriously destroyed shortly before this trial, and so was not provided for inspection,’ he told the judge.
Mr Gibbs and his ex-wife Sandra Gibbs are representing themselves at trial.
Mr Gibbs (pictured) claimed he was ‘living hand to mouth’ due to the freezing order imposed on him in 2021 and no longer has control over the yacht or access to the Montenegro apartment
Mrs Gibbs told the judge: ‘I can’t find the original trust deed, but have provided certified copies,’ adding that she had kept it ‘safe in a drawer,’ but that it had nevertheless been lost.
Mr Gibbs, making submissions, told the judge not to expect him to have ‘legal superpowers’ because of his illustrious former job, but to treat him like any other litigant in person, adding that he had retired in 2006 and come off the solicitors’ register in 2016.
In the hearing earlier this year, Mr Gibbs had claimed the costs and damages orders would ruin him, saying: ‘This is warfare against me.’
Mr Gibbs claimed he was ‘living hand to mouth’ due to the freezing order imposed on him in 2021 and no longer has control over the yacht or access to the Montenegro apartment.
The claims were disputed by Mr Atrill. Judgement was reserved.