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The Petty Debts court has rejected a claim for a hotel group to return a motorcycle to its original owner due to significant outstanding debts between the parties.
Ross Gledhill, the former boss of White Rock Brewery, asked the court to return the bike, which had been held by the Little Big Hotel Group for two years following the liquidation of the brewery.
He argued the company had no right to possess the bike since no court or Sheriff order was made on the bike, although an outstanding compensation order for over £70,000 did exist.
Simon De La Rue, a director at the hotel group, noted that Mr Gledhill had defrauded the company for a “significant amount of money” and produced a historic email in which the claimant had suggested the company could hold onto the bike “as collateral”.
He added that the company felt it should hold onto the bike or sell it off to recuperate some of its owed cash, which at the current rate of repayment would take 39 years to complete.
Judge Martin Thornton said the holding of the bike was not a legitimate security interest under law but said a lien had been created.
That is when one party can hold onto property belonging to another until a debt owed by that person is paid.
Judge Thornton therefore dismissed Mr Geldhill’s claim, said the Little Big Hotel Group could hold onto the bike pending action of HM Sherriff relating to compensation, but could not sell the property.
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