Peter Waddell v used car dealer Big Motoring World: What happens next?

It’s the court case that has gripped the motor trade for weeks, and both sides in the Peter Waddell legal saga are now facing an anxious wait to hear the result.

Car Dealer has been covering all the drama from the High Court ever since proceedings got underway back in February, both attending proceedings in-person and pouring over thousands of pages of transcripts.

But what happens next in the case the whole of the motor trade has been hooked by? And just how much has it all cost?

Waddell is claiming unfair dismissal, harassment and disability discrimination by Bluebell Cars – the ultimate holding company of Big Motoring World – after he was ousted from the firm back in 2024.

The case has seen sizeable – and eye-wateringly expensive – legal teams battle it out for seven weeks, exposing the inner workings of Big Motoring World under the 59-year-old’s leadership.

Last week saw both sides deliver their closing arguments to Mr Justice Marcus Smith, who must now decide on a final outcome.

Sources close to the case have told Car Dealer that a decision is expected within six weeks, with a number of outcomes now on the table.

Should Waddell win, those in his camp claim he will regain control Big Motoring World and be able to buy back shares currently owned by investment group Freshstream, at market value.

Insiders close to the 59-year-old also insist that he would be due millions in losses, legal fees and reputational damage.

In a statement issued to Car Dealer via his team, Waddell said: ‘Freshstream will have to pay me £25m in losses, £20m in legal fees plus reputational damage for what they have done to the business.

‘They will also have to pay for the leases they have taken out on CarShop which they did without my approval.

‘I will then buy Freshstream’s shares at market value.’

Should the verdict go in favour of Bluebell and Freshstream, Waddell’s team say he will lose control of the board but remain the 64% majority shareholder.

In response, Freshstream’s legal team say that Waddell’s analysis of the situation is ‘wrong’.

They remain adamant that the former boss will not be resuming control of Big Motoring World, regardless of the outcome, and say that any remedy could still be subject to a future trial.

One insider, with an intimate knowledge of the case, told Car Dealer: ‘Mr Waddell’s representatives are wrong in their analysis.

‘If Mr Waddell’s claim fails, Freshstream will maintain control of Big (notwithstanding Mr Waddell’s majority shareholding).

‘Mr Waddell will not return to Big’s management and it is likely that the various respondents would seek orders that he pays their legal costs in the region of £25m.

‘The court has already ruled that, if it concludes that Mr Waddell has been unfairly prejudiced, the question of what remedy (if any) it should grant to Mr Waddell should be determined in a different, later trial.

‘As such, even if the Court finds that Mr Waddell has been unfairly prejudiced, it would not make orders in its judgment that he regains control of Big and/or is entitled to damages.

‘Mr Waddell would have to seek those orders at a second, contested trial in the future.

‘There is also the possibility of appeals by the parties.’

Waddell’s demands

Throughout the evidence, the court heard from a number of witnesses who outlined abuse and misconduct that they saw from Waddell.

Among the most bizarre exchanges came when it was alleged that Waddell demanded an employee write him an apology card and bring him a lemon meringue pie, following a disagreement.

The incident was confirmed by Big Motoring World’s commercial director, Neil Hodson who told the court he ‘drove the colleague to the shop to get the lemon meringue pie and was in the meeting room when it was delivered’.

During cross examination, Waddell’s barrister, Alan Gourgey KC suggested that the demand had been a joke – an assessment that Hodson disagreed with.

Elsewhere, a female employee alleged that Waddell made a string of inappropriate remarks including a comment about liking women ‘on their hands and knees’.

Another colleague claimed to have heard Waddell tell a July 2023 meeting that he had a ‘big car’ and a ‘little willy’.

The comments were just a small selection of the allegations put to the court, with Freshstream outlining a culture that left Waddell ‘free to give vent to the sexist, racist and bullying aspects of his character’.

Misconduct allegations pour in

Throughout the case, the defence have argued that Waddell was ousted from the used car supermarket group as a result of his own misconduct.

In the early stages, James Laddie, KC, representing Bluebell Cars, said that Waddell had ran Big Motoring World as a ‘fiefdom’.

The court later heard about a string of misconduct allegations from Waddell’s time at the top of the company.

Car Dealer was in court on day 10 of proceedings when it was heard that the motor trade tycoon had nicknamed one of his employees ‘Ching the P***’ and was accused of labelling another a ‘muslim w***er’. He also admitted to referring to Hindus as ‘Hyundais’.

Graeme McPherson KC, who represents current Big Motoring World CEO, Laurence Vaughan, labelled Waddell a ‘foul tempered bully’ as he outlined a slew of allegations about his conduct.

The court heard that the businessman told a male employee in Peterborough that he would ‘bend him over the desk and f*** him up the a***’, while he subjected another to a ‘utterly humiliating experience’ by ‘screaming’ at him.

Later in the hearing, Big Motoring World employee Tom Clarke told the court he had been left in ‘absolute shock’ after Waddell told him his home and office had been bugged.

A sweep of the office found that Waddell’s claims were untrue there were untrue, but it was never established whether or not his home was under surveillance or not.

It was also revealed that Waddell told members of staff when he had sex the previous night, and would ask male employees if they had as well.

When the comments were put to him, the car dealer said he used the tactic to be ‘motivational’ and compared his behaviour to the ‘Wolf of Wall Street’.

Investigation was ‘unfair and discriminatory’

Waddell was dismissed from Big Motoring World after an internal investigation upheld several misconduct allegations against him.

Legal papers reveal that Freshstream investigated 27 allegations, some of which Waddell denies and some of which he claims were taken out of context.

However, throughout the proceedings, his legal team have raised a number of concerns about the way the investigation was conducted.

On the opening day of the hearing, Waddell claimed he had been victim of a ‘coup’ to oust him,

During proceedings, it was also revealed that Tom Clarke and Neil Hodson – both of whom sat on the investigation committee into Waddell – received a ‘PW bonus’ after his departure.

Waddell’s eventual replacement as CEO – Laurence Vaughan – was the final member of the investigation committee and he received a £100,000 bonus for 2024, despite profitability dropping ‘very significantly’ compared to the previous year.

Gourgey suggested the bonuses were inappropriate and questioned whether they were effectively rewards for participation in the investigation – something Vaughan dismissed as ‘complete nonsense’.

Vaughan was also accused of being ‘paid by two masters’ after the court heard that he was paid a £145,000 ‘consultancy fee’ by Freshstream in late 2023 in a payment which was kept ‘secret’ from Waddell.

Earlier in proceedings it was also revealed that Waddell was kept in the dark about the allegations that led to his ousting for almost a month after being suspended from the firm.

Waddell was suspended from his position as CEO of the used car supermarket group on March 7, 2024 – following a number of misconduct complaints.

However, evidence presented in London revealed that the formal allegations were not provided to him until April 2 – almost four weeks later.

The court also heard that Waddell was asked to attend an investigation interview on April 9, giving him just six days to respond to the allegations, with a written response required 24 hours before the meeting.

Freshstream insisted that Waddell – who was signed off with anxiety at the time – did not ‘engage’ with the process and accused him of interfering with witnesses.

Disabilities come under the microscope

During his own evidence, Waddell told the court he suffers from severe dyslexia and that he uses nicknames to help remember people.

A medical professional who assessed the car dealer as part of his High Court trial says that the Big Motoring World founder suffers from ‘severe’ dyslexia that would be ‘nearly impossible’ to fake.

Dr Vana Avgerinou added that 59-year-old’s condition affects his reading, memory and language processing – giving results that could not be ‘exaggerated’.

Big Motoring World’s lawyer, James Laddie, questioned the severity of the motor trade tycoon’s condition, saying that he is is able to ‘read complex information and retain it’.

However, Dr Avgerinou disagreed, telling the court that her conclusions were based on a full diagnostic assessment, as well as multiple reports.

The six respondents in the case are Bluebell Cars Bidco Ltd, Bluebell Cars Holding Ltd, Bluebell Cars Topco Ltd and Big Motoring World directors Lawrence Vaughan, Reza Fardad and Thomas Clarke.

Mr Justice Marcus Smith is now considering his decision.

Read more on the trial so far…

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