Last updated at 3:20 AM on 25th January 2011

Less than three weeks after I revealed that Dragons' Den star James Caan has quit the BBC show amid a bitter row with fellow tycoon Duncan Bannatyne, I learn of another possible reason for his exit — he is being sued for defamation by one of the show's most successful contestants.

Single mother Sharon Wright, 40, won an 80,000 investment for her company Talpa Products after she gave a pitch to the Dragons in 2009. Her idea was 'MagnaMole' — a plastic rod which threads cables safely through cavity walls.

But now Sharon, who left school with just two O-levels, has engaged lawyer Dean Dunham — whose clients also include several Premier League footballers — to pursue a High Court action against Caan.

I'm out: Sharon Wright severed her links with tycoon James Caan (above)

I'm out: Sharon Wright severed her links with tycoon James Caan (above)

Sharon came away from the Dragons' 'lair' with Bannatyne, 61, and Caan, 50, as investors after they offered 80,000 for a 22.5 per cent stake in her company.

But the 'expert help' she was expecting never materialised. The investment turned out to be a loan she would have to pay back and, she claims, the contract drawn up by Caan's lawyers meant that, in effect, they had bought nearly a quarter of her company for 29.

Sharon also claims she was asked to reduce her salary from 50,000 to 12,000, while Dunham points out that the two Dragons' demands meant that one of them would become chairman of her firm.

At the same time, Sharon's health began to suffer. She says: 'I felt absolutely mentally, physically and emotionally exhausted.'

Eventually, Dunham organised a termination of the contract with the Dragons' legal teams. Shortly afterwards, Sharon went into hospital for three weeks having suffered a nervous breakdown.

Dunham now confirms he has just issued a High Court writ demanding unspecified damages from Caan for defamation, but precisely what Caan is alleged to have said of his client is unclear.

Says the lawyer: 'I can't comment at present. The case is ongoing. The damages we are asking for have yet to be assessed.'

Caan could not be reached to comment last night.

Quite a catch for Botham's boy

'Orgy organiser': Emma Sayle, who is dating Ian Botham's son

'Orgy organiser': Emma Sayle, who is dating Ian Botham's son

There's probably not much that shocks cricketing lothario Sir Ian Botham. But even he must have blushed when his son, rugby player-turned-banker Liam Botham, told him what his new girlfriend does for a living.

For divorc Liam, 33, has, I discover, fallen for Emma Sayle — who is an orgy organiser.

Liam, who also played cricket for Hampshire, has moved in with diplomat's daughter Emma, who runs the company Killing Kittens, which organises adult parties for 'open-minded' young couples.

Emma, 32, is often described wrongly as a good chum of royal bride-to-be Kate Middleton. In fact, they only met a couple of times when Emma was organising a boat race across the Channel.

Of her beau, she says: 'We were set up by mutual friends who thought we'd hit it  off. They were absolutely right.'

In fact, they were so keen on each other that, within weeks of meeting five months ago, father-of-two Liam moved in to Emma's West London home.

The couple share a love of sport, and were both in Australia with Botham Snr for the recent Ashes series.

Emma is also encouraging Liam to join in her love of running and swimming — she has completed two 100-mile races in the Sahara and has swum the Bosphorus. 'My next challenge is the English Channel,' she tells me.

Sir Michael Peat's decision to retire as Prince Charles's private secretary begs the question of who will succeed him.

The fact that Peat, 61, will not leave until a replacement is found looks like bad news for his deputy, former BBC honcho Mark Leishman, who was once tipped for the job.

Peat's move comes only two years after the exit of his previous deputy, Elizabeth Buchanan. Might she be tempted back? 'Charles likes the idea of a woman as his principal aide,' says a friend.

Perhaps, then, he could offer the formidable Fiona Shackleton, his divorce lawyer and a newly ennobled working peer, a break from matrimonial affairs?

A rare reminder of happier times between the Prince and Princess of Wales is up for auction this week. The lot comprises six sheets of writing paper adorned with Charles and Diana's initials, which are entwined in blue beneath a crown. These initials appear on the writing paper above their Kensington Palace address.

The paper was found abandoned on a bonfire by former royal chauffeur David Griffin after Diana's death. 'I reckon they must be among the last surviving unused pieces of such writing paper,' he tells me. 'After all, it wasn't used after the Prince and Princess separated.'

The paper — along with his two medals from royal service, a medal from the Royal Victorian Order and the Queen's Golden Jubilee Medal — are included in a sale at the Hose Rhodes Dickson auction house on the Isle of Wight on Thursday.

Griffin, who is Princess Margaret's former driver, plans to donate the proceeds to an unwell friend in Australia to help with medical costs.

Hugh's the daddy

As owners of a 5,000-acre Suffolk estate, finding room for a new member of the family shouldn't be a problem for the Hon Hugh Crossley and his wife Lara, who, I can reveal, are expecting their second child.

'We've decided not to find out its gender. It gives us more to talk about during the pregnancy!' says Hugh, who is heir to a 25million fortune. 'That said, we're relieved to know there's only one.'

Expecting a second child:

Expecting a second child: Hugh and Lara Crossley

Lara gave birth to the couple's first child, John, 11 months ago. But his growing family won't stop Hugh, 39 — who shares an ex-girlfriend, Jecca Craig, with Prince William — from going ahead with plans to rent out his ancestral home, Somerleyton Hall, which he inherited from his father, the 3rd Baron Somerleyton, eight years ago.

'The house was undoubtedly built to entertain. So I'm going to promote it as a place for private hire,' explains Hugh. 'Lara and I really don't believe we're making full use of the beautiful estate by sitting in its kitchen like a normal family.'

Thunderbirds are go?.?.?.?but not yet. The show's creator, Gerry Anderson, has had to temporarily shelve plans for a new series of the much-loved children's programme because of a spell in hospital.

Anderson, 81, is now recovering at home from a shoulder operation. I am told: 'Gerry wrenched his shoulder some time ago. It is something he has wanted to see to for a while. He went into hospital at midday on Wednesday and left on Thursday, and is making a good recovery.'

Anderson has excited his fans by confirming he is to make new episodes of the show using CGI technology.

PS

Don't be too hasty in sympathising with former Shadow Chancellor Alan Johnson. One evening in 1988, when the one-time postman was a rising trade union star, he arrived home in Slough and astounded his wife Judith, whom he'd married 20 years earlier, by announcing: 'I don't love you any more.'

He left to later set up home with Laura Patient, 14 years his junior.

It's Laura, now his second wife, who had the affair with PC Paul Rice and who wants a divorce. You might call it poetic justice.