Catering boss denies flawed accounts in £1m court case

Daniel Gill of Dine Catering Ltd is embroiled in a dispute with Harewood House Trading Ltd, the commercial arm of Harewood House Trust.

Last month Leeds High Court heard how a 20-year business relationship between the stately home and the firm of outside caterers soured over a few months following a row over alleged underpayments.

Harewood House, owned by the Queen's cousin, claims it is owed 23,000 in unpaid commission, but the catering firm has put in a counter-claim for loss of earnings, believed to total around 830,000, after its 10-year contract to cater for weddings and other events in the grounds was terminated.

The arrangement between the parties was that Harewood would receive a 15 per cent commission on food and drink sales at a marquee erected in its grounds.

But matters came to a head in April 2008 after a particularly grand birthday celebration held for Suzannah Allard – "quite a grand affair" – for which her husband had flown in the band Westlife.

Yesterday at a resumed hearing, Neil Berragan, representing Harewood, cross-examined Mr Gill. He asked him whether he agreed that "the contract as it stood, Harewood had to trust in Dine?''

He replied: ''Yes, absolutely''.

Mr Berragan then asked him: "Did you believe that it was important to pay the correct commission?'' Mr Gill agreed that it was.

He was then asked how it was that various items had not been properly accounted for.

Mr Berragan said: "Even today you have not carried out any investigation or inquiry as to how these items were missed off.''

Mr Gill said: "We did our best to hold reconciliations but unfortunately without the ability to communicate properly with Harewood there are mistakes, absolutely.''

It was then suggested that a pattern appeared to be emerging whereby Dine "failed to include additional items that appear on the final invoice?''

Mr Gill said: "I don't accept that. The problem we have with the system at Harewood was there were innumerable items and where they were excluded I don't seek to deny that commission was owing but also that we could rely on an open and honest relationship with Harewood and rectify errors.''

Mr Berragan then moved onto the alleged tardiness of Dine in providing detailed information to Harewood. He asked: "Now this was the first event of 2007 but the commission reporting form was not sent until February 2008?''

Mr Gill said: "I would be absolutely flabbergasted that that was the first time it had been sent to Harewood'' and suggested the document might have the "wrong date''.

Mr Berragan said of an event "it is quite clear that the number of guests was 170. How can it be that on this document you have written 150?''

Mr Gill said: ''The suggestion that they were deprived of any information is definitely not the case.''

Mr Berragan said: "The suggestion is that you have decided not to write down 170 but 150. The other explanation is that you have a flawed system.''

Mr Gill said: "I am ultimately responsible. I would like to think we have ultimately accounted for any shortfall.''

Mr Berragan then asked him about the omission of the canape menu. He said: "You have said you sold 150 on a menu at 21 but you sold 170.''

Mr Gill said: "I said clearly, there's a mistake which should not have happened.''

The case continues