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WH Holding v E20: Commercial Court sets aside expert’s anti-embarrassment valuation for manifest error; guidance on ‘obviously wrong’ standard (England and Wales)

Published on: 10 February 2025

Published by a LexisNexis Dispute Resolution expert
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Article summary

WH Holding Ltd v E20 Stadium LLP [2025] EWHC 140 (Comm)

What was the background?

  • WH Holding Ltd (WHH) and E20 Stadium LLP (E20) were counterparties to a concession agreement (the Agreement) concerning the operation of the London Stadium situated in the Queen Elizabeth Olympic Park
  • The Agreement included an anti‑embarrassment clause requiring WHH to pay E20 a Stadium Premium Amount if specified transactions by WHH’s shareholders occurred
  • On 10 November 2021, WHH’s shareholders entered into arrangements to sell shares and to grant options connected with WHH’s ownership of West Ham United Football Club
  • A dispute then arose between WHH and E20 as to whether, in light of those transactions, a Stadium Premium Amount became payable pursuant to the anti‑embarrassment clause
  • The parties referred that dispute to an expert for determination in accordance with the Agreement’s expert determination clause, which provided that the expert’s decision would be final and binding in the absence of manifest error
  • The expert determined...

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