A complicated property case being heard in London could break new ground and set important legal precedents about the role and duties of administrators, according to the claimant’s lawyer.
Businesswoman Julie Davey alleges that Dunbar Assets, part of the Zurich group, directed the administrators of her company to sell its only substantial asset, a property near Canary Wharf, for millions of pounds less than its true value.
She is suing joint administrators James Money and Jim Stewart-Koster, respectively a current and former partner at BDO, and bringing a counter claim against the bank in response to its costs claim against her.
In court today her barrister, Stephen Davies QC, said that the issues brought up by the case “call on the court to look at the duties of an administrator”.
He said that, while there have been various rulings in the past relating to the administrator’s role, “there has been no case where the issue has required full examination”.
The proceedings involve the marketing and eventual sale for £17.05m, in December 2013, of Angel House at [225 Marsh Wall, E14], by the joint administrators of Davey’s company, Angel House Developments, who were called in, in respect of a £16m loan made in 2007.
The proceeds of sale went to Dunbar, which was in the process of collecting in its debtor book. Davey alleges that the sale went through after minimal publicity within a tight timeframe driven by Dunbar’s redemption programme, and that higher offers were rejected or ignored.
Dunbar and the administrators deny the allegations, and say that it makes no sense that they would seek to sell the property below its value.
The case is being heard in London’s Commercial Court building. The hearing has lasted for more than a month, and is expected to end in the next few days.
Angel House Developments Ltd v Davey and Money & others Commercial Court (Snowden J)
