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Friday 23 January 2015

Ghostwriter signatures on Personal Guarantee - Beware

The use of ghostwriters by celebrities to pen autobiographies is widely known of and generally accepted. However using a ghostwriter to sign a personal guarantee thereby creating a legal obligation to pay over £600,000 is precisely what happened to celebrity chef Gordon Ramsay. The High Court delivered its Judgement on 20th January 2015 in the case of Ramsay v Love - [2015] All ER (D) 130.

The ghostwriter in question was a Ghostwriter Manual Feed Signature Machine. In this case it was found by the Court that Gordon Ramsay gave a wide general authority to his father in law Christopher Hutcheson to conduct the business of Mr Ramsay's companies and indeed Mr Ramsay's own business affairs It was also held that it was expressly understood that Mr Ramsay would provide personal guarantees of leases of premises where this was a business requirement. It was also found that Mr Ramsay was not always aware of the detail of specific business transactions.

Mr Hutcheson, pursuant to this particular general authority used the machine to place Mr Ramsay's 'signature' on a lease and on a personal guarantee contained within it. Mr Ramsay contested the validity of the guarantee and lost after a trial that lasted over a week. The fact that Mr Ramsay was not holding the pen and was not even there when it was signed mattered not. It was signed on his behalf and pursuant to his authority.

For those who are interested the premises in question were The York and Albany pub near Regent's Park and the Landlord to whom the rent was owed was the film director Gary Love.

Www.patrickselley.com

Email me for advice at :

Patrick.selley@keystonelaw.co.uk

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