Legal

Law firm sued over Imagine Homes deal

Legal

Julia Cahill

29 March 2011

News

Investment firm Ranson UK is suing law firm Harris Cartier in a row over a deal with Grant Bovey’s Imagine Homes.

Ranson is demanding £100,000 in damages from the firm after its plans to buy 34 flats in Haringey fell through at the start of the recession. Harris Cartier is defending the claim and is planning to bring a counterclaim for unpaid fees.

The dispute dates back to 2007, when Ranson, run by Bola Ranson, agreed to pay Bovey’s company between £245,385 and £262,605 per flat in the London Square development in Bounds Green, London N11. Ranson planned to sell the flats on to individual buyers.

According to a High Court writ, he paid a total of £199,999 in deposits, but subsequently found that it was “near impossible” to obtain finance, after valuers withdrew their valuation of the flats.

It is alleged that Imagine Homes offered to repay half of the deposits, but Ranson requested £150,000, which was refused. The writ claims that Harris Cartier had advised Ranson to sue Imagine Homes, whose solicitor offered a “drop-hands” settlement; the company subsequently issued a counterclaim. In May 2009, the matter was settled on a drop-hands basis, with Ranson paying £5,740 towards Imagine Homes’ costs, but by this time, Harris Cartier no longer acted for Ranson because of a perceived conflict of interest.

Shortly after the settlement was reached, Imagine Homes and Imagine Homes UK went into administration.

Ranson accuses Harris Cartier of negligence, alleging that the solicitor failed to explain that the claim was doomed to fail and Ranson had no real prospect of proving that it had exercised its rights to terminate the agreement and recover its deposits. It also alleges that Harris Cartier failed to warn of a possible significant counterclaim by Bovey.

Ranson is claiming £100,000, which it says it could have recovered from Imagine Homes, and for more than £60,000 in legal fees.

Harris Cartier partner Brian Levy said: “I confirm that a claim has been issued against us by Ranson UK and that it is in the hands of our solicitor. However, I can also confirm that we will be defending the claim and that it is our intention to counterclaim for our unpaid professional fees.”

Investment firm Ranson UK is suing law firm Harris Cartier in a row over a deal with Grant Bovey’s Imagine Homes. Ranson is demanding £100,000 in damages from the firm after its plans to buy 34 flats in Haringey fell through at the start of the recession. Harris Cartier is defending the claim and is planning to bring a counterclaim for unpaid fees. The dispute dates back to 2007, when Ranson, run by Bola Ranson, agreed to pay Bovey’s company between £245,385 and £262,605 per flat in the London Square development in Bounds Green, London N11. Ranson planned to sell the flats on to individual buyers. According to a High Court writ, he paid a total of £199,999 in deposits, but subsequently found that it was “near impossible” to obtain finance, after valuers withdrew their valuation of the flats. It is alleged that Imagine Homes offered to repay half of the deposits, but Ranson requested £150,000, which was refused. The writ claims that Harris Cartier had advised Ranson to sue Imagine Homes, whose solicitor offered a “drop-hands” settlement; the company subsequently issued a counterclaim. In May 2009, the matter was settled on a drop-hands basis, with Ranson paying £5,740 towards Imagine Homes’ costs, but by this time, Harris Cartier no longer acted for Ranson because of a perceived conflict of interest. Shortly after the settlement was reached, Imagine Homes and Imagine Homes UK went into administration. Ranson accuses Harris Cartier of negligence, alleging that the solicitor failed to explain that the claim was doomed to fail and Ranson had no real prospect of proving that it had exercised its rights to terminate the agreement and recover its deposits. It also alleges that Harris Cartier failed to warn of a possible significant counterclaim by Bovey. Ranson is claiming £100,000, which it says it could have recovered from Imagine Homes, and for more than £60,000 in legal fees. Harris Cartier partner Brian Levy said: “I confirm that a claim has been issued against us by Ranson UK and that it is in the hands of our solicitor. However, I can also confirm that we will be defending the claim and that it is our intention to counterclaim for our unpaid professional fees.”