News

Property Guarantees - Gordon Ramsay and his f%*#ing father in law!

A legal titbit from the world of celebrity this month, incorporating something of a cautionary tale in relation to giving personal guarantees for liabilities pursuant to a Lease.

Gordon Ramsay has been in court challenging the enforceability of a personal guarantee he had given for liabilities arising pursuant to the terms of a lease entered into by his company, Gordon Ramsay Holdings International Limited, in 2008.  The Lease was for a term of 25 years at an initial annual rent of £640,000.  The venture was unsuccessful and the Landlord sought to enforce the guarantee.

Gordon Ramsay was in court to challenge the enforceability of his personal guarantee, primarily on the basis that it was his father in law who had made the commercial decision to provide the guarantee, without his immediate knowledge.  Furthermore the actual document (along with the Agreement for Lease and Lease) had been signed using a “Signature Machine” meaning that the document was signed without the signatory being physically present and, therefore, without authority.

The Court found that the Personal Guarantee was valid and enforceable by the Landlord on the basis the following facts:

  • Although there had subsequently been a serious falling out, at the time of the Lease Gordon Ramsay had clearly given his father in law full authority to conduct his business and personal affairs, including capacity to make all requisite commercial decisions to further those interests.       The personal guarantee fell under this remit;
  • The market for the Property was competitive and the Landlord, therefore, had strong commercial grounds for requesting the guarantee and, correspondingly, it was reasonable for Gordon’s father in law to consider the commercial option of a personal guarantee;
  • Gordon was aware of the Signature Machine and of the fact that it was used to sign legal documentation on his behalf in his absence and without his specific consent for each occasion of use.
The personal guarantee was therefore binding on Gordon Ramsay.

A general point to draw from this rather particular set of circumstances (we don’t, after all ,expect that everyone has a Signature Machine)…  keep an eye on who is authorised to make commercial decisions in your absence and always check what you are signing!

Posted on 03/12/2015 by Ortolan

Get in Touch

If you would like to know more about Ortolan Legal and how we can help you reduce your ongoing recruitment costs, get in touch!

Email us now

   Or call 020 3743 0600

Unipart Group has used Ortolan Legal’s services to supplement our in-house legal team for a number of years. We keep coming back to them because their unique combination of experienced, high quality lawyers at extremely cost-effective rates sets them apart from other law firms. It also has to be said that their team are personable, highly commercial and very responsive. I would recommend them without reservation.

Richard Collins, Group Legal Director Unipart
See All
Receive news & updates from Ortolan Legal

Meet the Team

  • Nick Benson Nick Benson I qualified as a commercial and corporate solicitor…
  • Liz Delgado Liz Delgado I qualified as a solicitor in 1995 after studying…
  • Carrie Beaumont Carrie Beaumont I qualified as an Employment specialist in 2008. I…