Gerald Eve is suing DLA Piper after the agent settled a professional negligence claim with Northern Rock regarding mortgage valuations it had made on flats at the West End Quay development in Paddington, London W2.
In the claim, filed at the High Court on 25 October, the agent is demanding that the law firm should contribute towards the £1.6m that it has agreed to pay Northern Rock after the bank sued for alleged negligent valuations.
During 2003, Northern Rock loaned £6.75m on 15 flats in the development to a company called Matan Beseser.
On 30 June 2004, the company defaulted and the flats were repossessed.
On 13 April 2005, the bank sold the flats to Trinity Corp for £5.15m.
The bank sued both Gerald Eve and DLA Piper for the shortfall.
That claim alleged that DLA Piper had failed to: (i) inform Northern Rock that a middleman, Maksim Wine, was involved in the transactions and would be making a profit in excess of £2m on the deals; and (ii) properly investigate title to the flats.
Gerald Eve is now repeating that claim against the law firm.