London law firm Fladgate Fielder is being sued for over £2.8m for breach of contract and negligence, after property investors failed to comply with their obligations under the Companies Act 1985 when transferring an interest in a corporate property holding.
According to a writ issued in the High Court, in 1993-94 Fladgate Fielder failed to advise Laurence Kirschel and the Consolidated Property Corporation of the extent of their obligations under section 151 of the Companies Act when Kirschel bought shares in the company as part of deal to sell 90-100 Wardour Street in London’s West End.
The plaintiffs are claiming liquidated damages for a corporate tax bill of £1.44m and an income tax liability of £1.25m. They are also seeking an account of moneys held by the firm and damages for breach of trust.
A spokesman for Fladgate Fielder said the action would be defended rigorously. Herbert Smith is acting for the plaintiffs.
PLS News 17/5/99
