When is a gift not a gift? The sad tale of an heiress and a luxury car
It is often painful when a relationship ends, particularly when you feel you have invested a lot of time or indeed, in this case, money in that relationship. However, breakups seldom result in both parties finding themselves in court over a luxury car.
Take pity then on Tamara Ecclestone, who became embroiled in a high octane court case with her former partner, Omar Khyami, over the recovery of a Lamborghini, after the rather messy end to their relationship.
The runaround was presented by the then loving Miss Ecclestone to Mr Khyami on his birthday in 2012. Unbeknown to Miss Ecclestone, he then used the Lamborghini as security for a loan for a Bentley which he bought for her – it must have been love.
The Bentley debt was not paid. While the car was being serviced, it was seized by bailiffs acting for the car dealers, who then took the car into their possession. They arranged for the car to be returned to Mr Khyami so he could hand it back to satisfy the debt. Miss Ecclestone intercepted this action and took the car back, claiming that it was in fact hers.
Was it a gift?
At court, Miss Ecclestone claimed that she had not intended for the car to be a gift to Mr Khyami, rather she had only intended him to have use of it whilst they lived together. The court rejected this argument. The gift was made voluntarily, gratuitously and with no intention that it was to be returned to Miss Ecclestone. The court rejected the argument that there was any condition attached to the gift (i.e. that it only be used during the course of the relationship).
Few of us are ever likely to buy a Lamborghini for our significant other. However, it is worth bearing in mind that should you ever wish to ensure that a gift of significant value is subject to certain conditions, you should seek advice from a solicitor to avoid finding yourself in a similar situation to Miss Ecclestone.
Where lawyers are instructed by a person who wishes to make a significant gift but only subject to conditions they should give consideration to whether the gift should be recorded by deed to protect their position. A deed (and, more importantly, any conditions attached) is enforceable. An unconditional gift is simply a gift.
If any of you are wondering how Miss Ecclestone has coped with the loss of her Lamborghini, worry not. She was spotted later that day in another luxury car show room for some retail therapy.
