Berkeley legal claims against buyers stayed for mediation

The High Court has stayed three legal claims against buyers who have failed to complete on Berkeley Homes’ Caspian Wharf scheme in order for mediation to take place. Yesterday, Chief Master Winegarten stayed the claims against the three buyers, who are all members of the Berkeley Homes Collective, until 29 October 2010 so that mediation can take place in an attempt to avoid the matter going to trial. Two of the buyers, Steven Dowd and his fiancée Helen Glanfield, told the chief master that they had already incurred £12,000 in legal costs and hoped that the mediation, involving leading dispute resolution pioneer Dr Karl Mackie, would resolve the case. Dowd formed the Berkeley Homes Collective to represent people who have been unable to complete on purchases of homes at Berkeley’s Caspian Wharf, Royal Arsenal and Chelsea Bridge developments in London. The chief master declined to order that members of the Collective involved in the Royal Arsenal scheme should take part in the mediation because Berkeley has yet to file legal claims against them. Berkeley began litigation against the buyers after the market collapsed and, consequently, the buyers were unable to obtain mortgages to complete on the deals – it demanded damages for breach of contract plus interest on its losses and costs. Dowd and the rest of the Collective allege that they were informed by sales staff that, should they find themselves unable to complete the deal, the most they could lose was their 10% deposit and, as a result of this, are counter-claiming for misrepresentation, misselling and “unconscionable bargaining.” In representations to the chief master, Glanfield said that “the world changed and we were caught out”, but went on to accuse Berkeley of using its “economic power” over them and of employing “very intimidatory tactics”. In response, Adrian Bingham, a partner at Davenport Lyons, for Berkeley, denied the allegations and said that there was a “pronounced history of militancy in the Collective”.