Elton John loses tour cost claim

The star argued his management firm should have borne tour costs

LONDON, England -- Sir Elton John has lost a multi-million pound court battle with a top firm of accountants.

The 53-year-old singer had sued PriceWaterhouseCoopers in London's High Court for negligence while it was managing his affairs.

Mr Justice Ferris gave his 138-page judgment on Wednesday following a hearing that lasted 43 days over three months and ended on February 1 when he reserved his decision.

During the hearing, Sir Elton's evidence hit the headlines when it emerged that his spending on property and personal items -- including £293,000 on flowers -- once amounted to almost £40 million over a 20-month period.

Sir Elton was suing Andrew Haydon, former managing director of John Reid Enterprises (JREL), which for many years was the star's management company, as well as City accountants PricewaterhouseCoopers, which looked after his business interests.

Both defendants vigorously contested the allegations against them.

The star alleged Haydon, 45, was negligent in allowing JREL to charge him overseas tour expenses, including booking agents, accountants and producers.

Sir Elton's case was that the "several millions" which he paid out in touring expenses should have been borne by JREL under a management agreement.

£40 million spending

Sir Elton's solicitor and manager, Frank Presland, said the star, who is in Atlanta on a U.S. tour with Billy Joel, would almost certainly appeal.

Asked if Sir Elton would be upset with the outcome, he said: "It's just business."

Sir Elton: "Far too busy" to find out how much money his tours made

He added that in June, Sir Elton would be emptying his "overflowing" garage for an auction in London of 19 cars -- including Bentleys, Aston Martins and Ferraris.

In a reference to the most celebrated quote from the hearing, Presland concluded: "I don't think he will cut back on his flowers."

Another spokesman for the star said Sir Elton had been made aware of the judgment "but is unable to comment at this time."

PricewaterhouseCoopers said in a statement: "We are delighted by the decision reached this morning by Mr Justice Ferris, dismissing Sir Elton's claim and wholly vindicating our position.

"This was a case wholly without merit and resulted in misguided proceedings being brought.

"Serious allegations were made by Sir Elton about the competence of our partners and staff - Mr Justice Ferris found these were totally unfounded."

Sir Elton had already accepted $5 million dollars ($3.4 million) from John Reid, 51, his former lover and manager, in settlement of his claims against him.

Reid was not a party to the action before Mr Justice Ferris, but the case centred on what was agreed between Sir Elton and him during a 1984 holiday in St Tropez over who would pay overseas touring costs.

Sir Elton's case was that he agreed at St Tropez that Reid would get 20% gross of "everything", instead of the previous arrangement of 20% net, in exchange for looking after everything in his business life, including overseas touring costs.

Reid, who was called to give evidence by PricewaterhouseCoopers, told the court he would never have agreed to pay touring costs and claimed it was never raised during the 1984 meeting.

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Elton John

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