Settlement Reached in Legal Dispute Over Glasgow’s Rogano Restaurant
A legal dispute concerning the iconic Glasgow restaurant Rogano has been resolved by the owners and landlord, more than six years after the establishment last served diners.
The restaurant closed during the Covid-19 pandemic and was subsequently unable to reopen due to flooding and an electrical fire affecting the Art Deco building.
The UK Supreme Court, convening in Scotland for the first time this week, was scheduled to hear the case but was informed that the claim had been settled just hours prior to the hearing.
Forthwell Limited, operating as Rogano since 1935, had claimed that landlord Pontegadea UK should compensate it for lost profits, as repairs to the property remain incomplete.
The highest court in the UK was set to hear the prolonged dispute when the settlement between Forthwell Limited and Pontegadea UK, owned by Spanish billionaire and Zara founder Amancio Ortega, was announced.
Rogano’s History and Closure
Rogano was considered the oldest surviving restaurant in Glasgow until it announced a "pausing of trading" in March 2020, in line with government Covid-19 guidance.
In 1935, the city centre restaurant was refurbished in the Art Deco style inspired by the Cunard Queen Mary liner, which was under construction on the Clyde at that time.
The restaurant enjoyed a loyal local clientele and was popular among visiting celebrities, including Mick Jagger, David Bowie, Elizabeth Taylor, Jude Law, and Harvey Keitel.
It was also a long-time favourite of singer Rod Stewart and featured in a scene with Benedict Cumberbatch in the drama "Patrick Melrose."
Kylie Minogue reportedly ordered mussels during her visit, leaving her waiter so starstruck he could only carry one starter at a time for fear of dropping the plates.
Keira Knightley visited the restaurant nightly for two weeks to eat scrambled eggs and smoked salmon while filming "The Jacket" in Glasgow.
Rogano was also showcased in an episode of celebrity chef Anthony Bourdain’s "Parts Unknown," where he shared oysters and lobster thermidor with the late comedian Janey Godley.
Impact of Flooding and Fire
The restaurant has remained boarded up since an electrical fire in 2021, which was caused by flooding incidents in December 2020 and January 2021.
The last of a series of murals commissioned by the restaurant owners during 2021 and 2022 remains on site, now layered with graffiti and posters by local artist Katie Smith.
Legal Proceedings and Settlement
The legal dispute was scheduled to be heard at Glasgow City Chambers on Wednesday.
At the start of the hearing, David M Thomson KC, representing Forthwell, informed the court that the parties had reached an agreement the previous evening.
No details of the settlement were disclosed in court.
Court documents revealed that in 2013, Forthwell assigned its interest in the Rogano lease to a subsidiary, Lynnet Leisure Rogano Limited, which continued trading at the site under a "licence to occupy."
The flooding in late 2020 and early 2021 caused an electrical fire, rendering the building unsafe. However, the parties were unable to agree on the scope of necessary repairs.
Forthwell claimed that Pontegadea’s failure to repair the premises as required by the tenancy agreement caused Lynnet Leisure to suffer lost profits, prompting legal action to recover both past and anticipated future losses.
Pontegadea argued that Forthwell could not recover profits lost by Lynnet Leisure, as it was a third party.
While the Outer House of the Court of Session ruled in favour of Forthwell in June 2024, the Inner House partially overturned this decision in October 2024, leading the company to appeal to the Supreme Court.
The hearing before Lord Reed, Lord Stephens, Lord Doherty, Lord Hodge, and Lady Simler was due to conclude on Wednesday, with a written judgment expected later.
