Reading solicitor Pitmans is facing a £1.2m High Court claim alleging breach of contract and negligence in its handling of a £2.9m property deal.
The action was brought by Summit Property Ltd, a property investment company, after it retained Pitmans in December 1996 to act for it in the proposed acquisition of an industrial estate at Pincents Kiln Lane, Reading.
It later claimed that Pitmans had breached that retainer by accepting instructions to act for another party, Longwood, that ultimately exchanged contracts for the purchase of the property via a newly acquired off-the-shelf company.
Summit now seeks damages representing loss of the profit it would have earned had its acquisition bid succeeded, on the basis that its failure to acquire the site was due to Pitmans actions.
Pitmans, however, maintains that the “deal” was always Longwoods, and that it was only introduced to Summit on a confidential basis as a potential funder. It denies there was any suggestion that it would cease to act for Longwood, and argues that it was obvious Summit could not lawfully proceed with the acquisition.
The hearing continues.
Summit Property Ltd v Pitmans Chancery Division (Park J) 3 July 2000
Philip Brook Smith (instructed by Davies Arnold Cooper) appeared for the claimant; Alan Steinfeld and Gilead Cooper (instructed by Ince & Co) appeared for the defendant.
PLS News 4/7/00
