Savills Private Finance, valuation expert Stocker & Roberts along with two more law firms are being sued by Barclays Bank and Barclays Private Clients International, for causing losses on mortgage deals that could potentially amount to £12 million in damage claims.
Barclays claims that the case dates back to 2006-07, when one of the brokers of Savills – who was later dismissed in 2007, had requested the services of Stocker & Roberts for valuing several properties.
The valuations were significantly overstated, Barclays later found out.
Barclays decided to sue two law firms also for negligence. The bank alleged that the broker had received two payments of £70,000 and £10,000 in installments after the deals were sealed.
Savills issued a statement saying “Savills Private Finance confirms legal proceedings have been issued against it in relation to five mortgages arranged by one of its employees four years ago”.
“SPF can confirm that the employee involved was dismissed in November 2007, when irregularities first came to light but it can make no further comments with regard to proceedings as these are ongoing”, Savills added.
Barclays refused to comment on the matter.