Weatherall Green & Smith are today back in court over five negligent leaseback transactions for Tower Hill Property Investments.
WGS have already admitted negligence after Tower Hill Property Investments, a consortium of finance houses, bought five hotels from Queens Moat Houses in 1990.
The court has been asked to determine whether the leasebacks should be treated as purchase or lending transactions. The answer will govern the way various quantum issues will be decided.
Tower Hill bought the hotels – the Bristol, Sheffield and Winchester Moat Houses, the Caversham Hotel in Reading and the Almond Brook Hotel in Wigan – for £53.91m after a valuation by WGS of £55.65m.
Tower Hill said that the true valuation should have been £34.75m.
The case is expected to last for six weeks.
Tower Hill Investments Ltd v Weatherall Green & Smith (a firm) and others – Queens Bench Division – Burton J – 8 November 1999
John L Powell QC and Timothy Harry (instructed by Norton Rose) appeared for the claimant; Christopher Moger QC and Adrian Hughes (instructed by Simmons & Simmons) appeared for the defendant.
PLS News 8/11/99
