Campbell Sharpe tells court Leonard's deal was generous

BUSINESSWOMAN Ms Noelle Camphell Sharpe told the High Court yesterday she had great respect for Hugh Leonard and his writing …

BUSINESSWOMAN Ms Noelle Camphell Sharpe told the High Court yesterday she had great respect for Hugh Leonard and his writing at the time an idea emanated from the Maxwell publishing group for an Irish hotels and restaurants guide.

She felt the publication should be called the Hugh Leonard Guide to Hotels and Restaurants" and that Mr Leonard might he asked to write for it.

Ms Campbell Sharpe was giving evidence on the second day of her libel action against the Sunday Independent and Mr Leonard following an article in his column of the newspaper on April 26th, 1992.

In the article, it was stated that "Ms Campbell Sharpe's company went to the wall owing me £5,000 for services rendered."

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On Tuesday, Mr Rex Mackey SC, for Ms Campbell Sharpe, said that at the time, a Maxwell company owned Irish Tatler Publications and that she had sold her shareholdings to Maxwell by agreements in 1989 and 1991.

In evidence yesterday, Ms Campbell Sharpe said that when it looked as if Irish Tatler and Sketch might close, she and others developed a plan to buy it and call it IT She later became sole owner. By 1989, she realised she needed a partner in the business. They negotiated a deal with Maxwell.

They entered a series of agreements in October 1989. She sold 51 per cent of her shares and was paid £100,000. They agreed a five year contract for her separately, under which she was to be paid £40,000 a year and expenses.

In April 1990, she started negotiations to release her from the contract and to be offered a consultancy agreement. Campbell Sharpe Associates was formed in July 1990. She was to transfer her remaining 49 per cent shareholding and act as a consultant to Maxwell Irish Tatler Publications.

When Maxwell came up with the idea of a hotels and restaurants guide for Ireland, she fell she could identify somebody who had a fine reputation about writing on cuisine. That was Mr Leonard.

Ms Campbell Sharpe said she arranged a meeting with Mr Leonard. She had draft proposals with her. It was a very convivial meeting. She clearly indicated she was a publishing consultant and not the publisher.

The payment she recommended for the hotel and restaurants guide was £10,000 - £5,000 on publication and £5,000 30 days later. There was to be a royalty fee pertaining to the number of magazines that might be sold.

She would have thought Mr Leonard thought the terms were very generous. She felt the £5 000 he had received for three articles to be very generous but because of the fact that he had allowed his name to be used it was a fair sum.

Ms Campbell Sharpe said she did not know a clause had been inserted, contrary to what she had proposed, that in the event of non publication it would allow Mr Leonard the whole £10,000.

After Mr Robert Maxwell's death, she had offered to buy the Irish To tier title unencumbered. From 1991 she had not owned any part of ITP and did not have any control in either its financial or management affairs.

She did not owe Mr Leonard £5,000. She had been amazed he got it so wrong in his article. He got £5,000 for three articles which were not published.

Cross examined by Mr Frank Clarke SC, for the defence, Ms Campbell Sharpe said she remained a director of ITP until the consultancy agreement.

Asked if the public would not have known of the consultancy agreement, Ms Campbell Sharpe said the general public would not but the immediate trade with which she was dealing would.

Mr Clarke said every company had to send to the Companies Office each year an account of the shareholders and directors. Ms Campbell Sharpe agreed but said that was not her function.

Counsel said that if one went to the Companies Office today, the only shareholder recorded was Ms Campbell Sharpe. She said she would be extremely surprised and she would have to be advised by her legal team.

The hearing continues today.