Hersman vs De Verchere

This case involved cross-applications by Mr. Frank Eric Hersman and Mrs. Alexandra Caroline De Verchere for the enforcement of a financial remedy order made in 2019, concerning two high-value properties in France.

TLDR:

• Mr. Hersman applied for enforcement and an account of rental income from properties in France.
• Mrs. De Verchere counter-applied for enforcement of an unpaid lump sum and appointment of a tax expert.
• The court found Mrs. De Verchere in contempt for failing to comply with previous orders.
• Mr. Hersman was awarded substantial compensation for lost rental income and mortgage surcharges.
• An injunction was granted to prevent Mrs. De Verchere from denigrating Mr. Hersman or his properties.

The case had a long history, with a final financial remedy order made by Mostyn J on June 12, 2019. The order declared Mr. Hersman as the sole beneficial owner of Chalet Pearl and Villa Pearl, two high-value properties in France. He was to discharge the mortgage installments and pay a lump sum to Mrs. De Verchere, who was to transfer the properties to him.

Mr. Hersman applied for enforcement and an account of rental income on December 22, 2022, claiming that Mrs. De Verchere had not complied with the order and had taken all rental income from Chalet Pearl, making it impossible for him to pay the mortgage. Mrs. De Verchere counter-applied on January 20, 2023, for enforcement of an unpaid lump sum and the appointment of a tax expert.

The court heard the case on January 23, 2023, and February 24, 2023. Mr. Justice Moor refused Mr. Hersman's application for immediate possession but ordered Mrs. De Verchere to account for rental income and pay net income into an escrow account. Mrs. De Verchere failed to comply with these orders.

On November 30, 2023, the court found Mrs. De Verchere in contempt for failing to give up possession, deliver keys and access codes, and transfer rental deposits. She was sentenced to three months in prison and ordered to pay Mr. Hersman's costs. However, she did not serve the sentence or pay the costs, as she had not returned to the UK.

The court awarded Mr. Hersman compensation for lost rental income and mortgage surcharges, totaling approximately £2,353,000 after offsetting the lump sum owed to Mrs. De Verchere. An injunction was granted to prevent Mrs. De Verchere from denigrating Mr. Hersman or his properties.

The judgment emphasized the court's power to enforce financial remedy orders and the consequences of non-compliance. It also highlighted the complexities of international property disputes and the importance of adhering to court orders.

Legal representatives: Mr. Tim Amos KC (instructed by Jmw Solicitors Solicitors) for the Applicant.

Judicial Panel: Mr. Justice Moor

Case Citation Reference: [2024] EWHC 905 (Fam)