By Sujin Thomas

LIQUOR distributor Giorgio Ferrari is claiming more than $6 million from LifeBrandz, the company behind nightspot Cafe Del Mar and the now-defunct Ministry of Sound.

In a writ of summons filed at the High Court, lawyers acting on behalf of Giorgio Ferrari are claiming some $5.8 million in damages as well as about $700,000 in refunds. The writ was filed on Oct 22.

Giorgio Ferrari claims that LifeBrandz and its four subsidiaries failed to honour a $10.5 million contract to buy 'guaranteed' quantities of liquor, such as vodka and champagne, for its nightspots.

The subsidiaries include The Cannery, formerly known as the Ministry of Sound; Cannery Holdings, which runs The Clinic at Clarke Quay; Palms Development, which manages Cafe Del Mar on Sentosa; and Balcony, which ran Balcony Bar in Orchard Road. Balcony Bar ceased operations at The Heeren in September, while the Ministry of Sound closed down in October last year.

The two-year contract, which took effect on Jan 1, 2007, was entered between the two parties on Dec 8, 2006. Giorgio Ferrari said the $5.8 million in damages was for the balance of liquor not bought during the contract term.

For instance, it claims that the Ministry of Sound bought only about $2.24 million in liquor when it was under contract to buy $5 million.

There was also an Advertising & Promotions fund, which was paid - in cash and kind in terms of products - by Giorgio Ferrari to LifeBrandz periodically as an incentive, after its subsidiaries had met set sales targets. The money from this fund was to be used by LifeBrandz to promote the sale of liquor at its various outlets. Giorgio Ferrari claims it should be refunded $699,308.99 for this.

LifeBrandz chief executive Bernard Lim told The Straits Times: 'We are leaving the matter in the hands of our lawyers. We will vigorously defend their claims and allegations.'

In September, Italian Giorgio Ferrari, 39, who runs the company, was fined $2.52 million for evading $450,000 in duties and tax. The lawyers of the two parties are due to appear in court on Dec 16.

This article was first published in The Straits Times.