Harrods is accused of employing delaying tactics and using a "crusader" public image to impede compensation payouts to alleged victims of the late Mohammed Al Fayed, the High Court has heard. The department store has filed an application to remove Al Fayed's widow, Heini Wathen-Fayed, and their daughters, Jasmine and Camilla, as executors of his £118 million estate.
Lawyers for Harrods argue that the Fayeds cannot objectively manage the compensation claims, citing the estate's risk of insolvency due to the substantial damages sought. They propose replacing the family with independent solicitors. However, lawyers representing the Al Fayed family contend that the store's actions and its public portrayal are actively frustrating the family's efforts to settle the survivors' claims.
Mohammed Al Fayed, who owned Harrods from 1985 to 2010, died in August 2023. Allegations of rape and sexual abuse against hundreds of women emerged after his death. More than 300 individuals are seeking damages from the estate and Harrods. The legal firm KP Law (KPL) is representing 270 claimants and seeking £150 million on their behalf. Harrods is also seeking reimbursement from the estate for payouts it has made to staff.
During the High Court hearing, presided over by Judge Karen Shulman, a division among claimants was revealed. Over 80% of survivors, largely represented by KPL, support keeping the family as executors, while those represented by other firms oppose it. Jasmine Al Fayed, a fashion designer, expressed surprise at Harrods' move, stating that the store's pursuit of replacing executors could create a conflict of interest due to its financial stake in the estate and that Harrods' actions have already delayed the estate's administration.
The estate's value is reportedly held within Levantine Investments Holdings Limited (LIHL), a British Virgin Islands company. Lawyers stated that its UK assets have a net value of "nil," with the primary asset being a £97 million loan note plus £20 million in accrued interest owed by Mafco Holdings Ltd, a Bermuda-registered firm.
Heini Wathen-Fayed, Al Fayed's widow, has reportedly changed her stance and now believes the accounts of those alleging abuse by her husband, a shift from her previous doubt. She was present at the hearing.
Harrods' legal team denied intentionally delaying proceedings, asserting that "special circumstances" warrant removing the Fayeds as executors. They claimed that Ms. Wathen-Fayed and her daughters could not handle settlements "objectively" and accused KPL of receiving preferential treatment in settlement talks. However, the Fayeds' counsel argued that the family is acting "entirely dispassionately" and engaging with claimants, accusing another law firm, Leigh Day, of hindering the process.
In response to Harrods' attempts to gather information about various firms linked to the Fayeds, the family's lawyers called it a "fishing expedition." They maintained that the estate has been handled properly and that Harrods' application should be dismissed.
Judge Shulman expressed concern that the case should not experience further delays, acknowledging its complexity due to the large number of complainants and the existence of Harrods' redress scheme. The court heard that Harrods has compensated over 110 people through its scheme, with £6.1 million paid out to date, but more than 300 women are seeking settlements directly after rejecting the scheme.
Al Fayed's son Omar is challenging an amendment to his father's will that replaced him as an executor, while his brother Karim opposes the change.