McGarry in court for £11.5m Cheshire claim

Dunlop Haywards’ former City head made a fleeting appearance at the high court this week.   Ian McGarry was sitting quietly at the back of the high court on Wednesday during a hearing into whether the Cheshire Building Society should be able to claim £11.5m from DH without a full trial.   Cheshire Building Society is suing the agent – now part of Erinaceous – over an alleged commercial mortgage fraud involving an industrial property in Aston, Birmingham.   McGarry, who was arrested and released without charge by West Midlands police in March 2006 for an alleged involvement in the fraud, was invited by judge David Steel to come to the front of the court to make representations to assist the court. He refused, however, and promptly left the courtroom.   Despite a continuing Serious Fraud Office investigation, no charges have been brought against any party over the alleged fraud.   During the two-day hearing this week, Cheshire Building Society argued that DH had no “real prospect” of successfully defending its claim.   DH claimed that its defence had been obstructed because McGarry would not help with its preparations.   Cheshire Building Society’s QC, Sue Carr, told the court that McGarry had previously said that he “was instructed by his superiors to overvalue the property”, which was “as good as an admission of knowledge that the valuations he advanced were not accurate”.   DH denied the allegations of fraud but admitted that the valuations might have been negligent.   DH also used the hearing to ask the judge to allow its £9m claim against McGarry in order that he is made accountable for any losses it may incur.   christian.metcalfe@rbi.co.uk