Drivers Jonas is facing a negligence claim for as much as £64m over valuation advice it gave on a development at Chatham Historic Dockyard in Medway, Kent, a decade ago.
Details of the dispute emerged this week as Drivers Jonas – now part of Deloitte – applied to the court to strike out the claim.
It was brought in 2009 by Matrix Securities, the manager of a trust that invested in a factory outlet development at the dockyard, and by Capita Alternative Fund Services (Guernsey) as trustee.
The Dockside scheme, in the former West Kent Enterprise Zone, was bought on behalf of investors for £63m in 2001 following advice from DJ. DJ had valued it at £63m with the benefit of Enterprise Zone tax allowances, and £48m without.
However, the claimants allege that competent valuations should have been far lower, at £43m and £32m, respectively.
DJ’s legal team believes Matrix and Capita may claim up to £64m in losses on the deal. Alternatively, they may seek to recover the difference between the price paid and the alleged true value in 2001.
DJ is defending the allegations and said it “strongly believes it acted entirely properly”. This week it sought to strike out the claim on the grounds that Matrix and Capita are not entitled to bring it.
DJ claims investors were never informed that the trust was changed to a Guernsey-based trust with a Guernsey-based trustee, after being marketed as a UK vehicle with a UK-based trustee. Matrix and Capita claim the strike out application is “devoid of merit”.
Mr Justice Blair reserved judgment on Drivers Jonas’ application. A trial date has been set for May.
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