Ann Summers owners sue solicitor for lost profits

The entrepreneurs behind the Ann Summers sex-shop chain are suing their former solicitor Davies Arnold Cooper (DAC) for lost profits on a north London resi-scheme. Greenwich House Properties (GHP), funded by “fashion and passion” creators David and Ralph Gold, allege that it suffered a £260,728 loss in profit as a result of DAC’s negligent advice on the £1.6m purchase of a property on Flower Lane, Mill Hill, London NW7. In April 2001, GHP appointed DAC to act for it in the purchase of the property, which had outline planning permission for eight new houses. GHP alleges that DAC had failed to ensure that the seller’s plans and drawings for the development were sufficiently warranted by its architect. After purchasing the property, GHP discovered that the plans and drawings on which permission had been granted were “materially incorrect”. Consequently, a development of the property in accordance with the permission was impracticable and it was necessary to obtain a new planning permission, which required the proposed homes to be reduced in size and therefore in value. GHP is claiming for its loss in profits from that reduction or the difference between the £1.6m purchase price and the value of the property with permission for an impracticable development. DAC declined to comment.