Another royal family feud leads to $10m diamond claim in London’s High Court

The storied history of the diamond’s past owners, including Ottoman Emperor Abdul Hamid II and American heiress May Bonfils Stanton (who is said to have worn it every morning during breakfast), leads us to the art boom in Qatar in the 2000s and its ownership under the late Sheikh Saud bin Mohammed Al Thani. Sheikh Saud had been a prominent art buyer for many years and was single-handedly responsible for developing Qatar’s internationally renowned art collection. Part of which, The Al Thani Collection of jewellery, is acknowledged “as one of the most impressive collections ever assembled”.

The present dispute arises from a 2014 agreement between Qatar Investment & Projects Development Holding (QIPCO) (run by Sheikh Hamad bin Abdullah Al Thani) and Elanus Holdings Limited (formerly owned by Sheikh Saud), which loaned the diamond to QIPCO. In the event that Elanus decided to sell the diamond, QIPCO had the right to buy it. The price was to be set at either $10m or the average of two auction house valuations, whichever was higher.

In February 2020, notice was given to QIPCO that the Al Thani Foundation, the ultimate beneficial owner of Elanus, wanted to sell the diamond. Two months later, the Foundation’s Swiss-based lawyer emailed Elanus to say that the Coronavirus pandemic had caused a change of heart and the Foundation no longer wanted to sell. QIPCO is now trying to force the sale through the High Court in London.

The confluence of high-profile royal parties, cross-border complications, and a huge diamond, make this matter one that the press will want to watch during 2023.

From a legal perspective, there is also a lot to unpick. Contractual disputes relating to Coronavirus, agency and corporate structuring add to the complexity of what may otherwise look like a family disagreement. With England, Guernsey, Lichtenstein, Switzerland and Qatar (at least) involved in this matter to some degree, cross-border expertise looks set to be invaluable to marshalling the matter.

Whatever the result, this is another case that adds weight to London’s claim as the preeminent forum for art disputes and cross-border matters. Indeed, Sheikh Hamad is no stranger to the London Courts, having as recently as November won a £4.2m claim against a leading antiques seller for misrepresentation. We will keep you updated.

Our Disputes team is highly experienced in advising contract disputes, particularly with a cross-border element. If you need help with a dispute, please get in touch.