Qatar Investment & Projects Development Holding v Elanus Holdings

Angharad Start and Victor Steinmetz, instructed by Adrian Parkhouse of Farrer & Co, acted for the successful defendant, Elanus Holdings, in a long-running dispute in the Commercial Court concerning the ownership of the ‘Idol’s Eye’, a 70.21 carat light blue diamond thought to be the world’s largest cut blue diamond.

The dispute centred around a 2014 loan agreement between Elanus Holdings and Qatar Investment & Projects Development Holding, an entity led for these purposes by Sheikh Hamad bin Abdullah Al Thani, a member of the Qatari royal family. The agreement granted QIPCO the right to purchase the diamond for the higher of $10m or the average of two major auction house mid-estimate valuations, should Elanus “wish” to part with it. The case raised several issues of Guernsey and Liechtenstein law, agency, pre-emption rights, and whether the “wish” or state of mind of ultimate beneficial owners could be attributed to corporate vehicles.

Simon Birt KC, sitting as Deputy Commercial Court Judge, dismissed the case finding that (i) Elanus had no “wish” to sell the diamond within the meaning of the Loan Agreement and there was thus no trigger for the pre-emption mechanism set out therein, (ii) none of its ultimate beneficial owners had such a “wish” and in any event, no such wish could be attributed to Elanus, and finally (iii) had there been any such “wish”, it no longer existed at the time QIPCO sought to exercise its right to purchase.

The diamond has an immensely rich history; having apparently been found in the 17th century in a mine at Golconda in Southern India, it made its first authenticated appearance in 1865 when it was sold through Christie’s. It is said to have later been owned by the 34th Ottoman Sultan, Abdul Hamid II, and Harry Winston. It was eventually acquired by the late Sheikh Saoud bin Mohammed Al Thani. It was later transferred to Elanus.

3VB’s Clarissa Jones, instructed by Fieldfisher, acted for the Claimant throughout, with Andrew Onslow KC initially. The late Richard Edwards KC of 3VB first advised Elanus.

Elanus was represented at trial by Sa’ad Hossain KC and James Nadin of One Essex Court.

See the judgment in full.