A Billionaire Couple Wins Refund for a Moth-Infested London Mansion

Introduction to the Case

In a remarkable legal victory, a billionaire couple successfully secured a refund for a luxurious London mansion they purchased in 2019 after discovering it was severely infested with moths. The buyers, Iya Patarkatsishvili and her husband Yevhen Hunyak, accused the seller, property developer William Woodward-Fisher, of concealing the infestation before the sale. The UK High Court ruled in their favor, ordering Woodward-Fisher to refund a significant portion of the £32.5 million purchase price, minus £6 million for the time the couple lived in the property, as well as substantial damages. This case highlights the importance of transparency in real estate transactions and the legal consequences of withholding critical information from buyers.

The Horrible Discovery: A Mansion Overrun by Moths

Horbury Villa, a grand 19th-century mansion in Notting Hill, west London, was meant to be the couple’s dream home. However, their excitement quickly turned to dismay. Within days of moving in, Patarkatsishvili and Hunyak noticed moths flying around and landing on their belongings. The infestation was pervasive, with moths found in clothes, wine glasses, toothbrushes, and even cutlery. The couple reportedly swatted hundreds of moths daily, and pest control experts identified the source of the problem: the insulation in the ceiling. The cost to replace the faulty insulation totaled £270,000, a significant expense that the buyers should not have incurred. The judgment criticized Woodward-Fisher for failing to disclose the issue, which he was aware of as early as 2018. His defense that moths were “not vermin” and therefore irrelevant to the sale was deemed insufficient by the court.

The Seller’s Negligence and the Couple’s Legal Victory

The High Court judge found Woodward-Fisher liable for knowingly selling the property with a severe moth infestation. By not informing the buyers about the problem, he breached his duty of disclosure, a critical aspect of real estate transactions. The court sided with Patarkatsishvili and Hunyak, ordering Woodward-Fisher to refund much of the purchase price and pay £4 million in damages. This included £15,000 for moth-damaged clothes and £3.7 million for stamp duty, a tax paid on property purchases in the UK. The ruling was a clear victory for the couple, who had endured significant inconvenience, financial loss, and emotional distress due to the infestation.

Background of the Billionaire Couple and the Property Developer

Patarkatsishvili and Hunyak are prominent figures in their own right. Iya Patarkatsishvili is a theater director and the daughter of the late Badri Patarkatsishvili, a Georgian billionaire tycoon who was once worth $12 billion, according to Forbes. Her husband, Yevhen Hunyak, is also a businessman. On the other side of the case is William Woodward-Fisher, a former rower who competed for the UK in the 1970s. The mansion in question, Horbury Villa, is a historic property that spans 11,000 square feet after extensions. It boasts luxurious features such as a pool, spa, cinema, and gym in the basement. Despite its opulent appearance, the home’s hidden flaws made it uninhabitable for the couple.

The Implications of the Ruling: A Warning to Property Developers

The case serves as a stark warning to property developers and sellers who attempt to conceal defects in their properties. Chris Webber, the attorney representing Patarkatsishvili and Hunyak, emphasized that the ruling highlights the importance of honesty in real estate transactions. “The couple hopes the case will serve as a warning to unscrupulous property developers who might seek to take advantage of buyer beware to sell properties by concealing known defects,” he said. This ruling reinforces the principle that sellers must disclose any known issues that could affect the value or livability of a property. Buyers, even those as wealthy as Patarkatsishvili and Hunyak, deserve transparency and fairness in their dealings.

Conclusion: A Cautionary Tale in Luxury Real Estate

The story of Horbury Villa is a cautionary tale about the importance of due diligence and honesty in luxury real estate. While the couple’s legal victory brings them some measure of relief, it also underscores the frustrations and challenges they faced in dealing with a property that was not as advertised. The case serves as a reminder to sellers that withholding critical information can lead to severe legal and financial consequences. For buyers, it emphasizes the importance of thoroughly inspecting a property before finalizing a purchase, even when dealing with high-end real estate. In the end, Patarkatsishvili and Hunyak’s experience stands as a testament to the enduring principle that fairness and transparency must guide all transactions, no matter how large or complex.