Nabarro is facing a negligence claim for almost £700,000 over advice it gave relating to a client’s contract with football club Manchester United.
Building products group Hanson has brought a claim in the High Court against Nabarro for £690,998.72, claiming negligence and breach of contract. Hanson is being represented by Jones Day dispute resolution partner Ian Lupson.
The claim relates to advice Nabarro gave to Hanson and its subsidiaries in relation to a tenancy agreement they had over land and properties owned by Manchester United.
Hanson had instructed Nabarro in 2003 to advise on options for withdrawing from investment in some of its subsidiaries.
However, Hanson claims that Nabarro failed to familiarise itself with the terms of a subsidiary’s lease on a property with Manchester United. The lease was then assigned to another subsidiary, a move Hanson says contributed to it forfeiting its right to exit the tenancy.
Hanson and the subsidiaries subsequently entered a dispute with Manchester United over the terms of the lease and the condition of the premises.
The dispute was settled in September 2006, with the Hanson parties agreeing to pay two years’ rent — amounting to £524,000 — to surrender the lease, as well as paying £13,500 towards Manchester United’s costs.
Hanson is claiming that, had Nabarro given complete and accurate advice, the company would have exited the tenancy on better terms.
Hanson is claiming the premium for the surrender of
the lease as well as costs, including an insurance premium of £4,046 and costs incurred due to having to negotiate the surrender of the lease, amounting to £15,578.
The claim, which was issued on 5 April, 2007, has been assigned to the Chancery division.
Nabarro managing partner Nicole Paradise confirmed the firm had received a claim and would be defending itself.
This is the latest negligence claim relating to property to be brought against a commercial law firm in recent weeks.
Last month it emerged that Simmons & Simmons is facing a £1.2m claim from a former client. The claim relates to advice Simmons gave to architect firm Trevor Horne on the acquisition of two properties at 15 Micawber Street, now Trevor Horne’s headquarters, and 12 Wharf Road, London.