The claim, which was filed in the High Court earlier this year, relates to an alleged property fraud, although the action against Cobbetts is for negligence regarding the alleged over-valuation of a property. The claim is against both the national firm and property adviser Dunlop Haywards.
Barlows head of professional indemnity Sarah Clover is leading the team advising Cobbetts with Hailsham Chambers’ Michael Pooles QC instructed as counsel.
Although the Cobbetts claim is limited to negligence, Cheshire Building Society’s primary claim against Dunlop Haywards — the surveying unit of property services firm Erinaceous — is for fraud.
The Macclesfield-based building society has instructed Addleshaw Goddard litigation partner John Gosling to advise on the case, with
This is the third negligence claim that has emerged in the last week in which a building society is taking action against a law firm for negligence where Dunlop Haywards has an involvement.
Eversheds is facing a £20m claim from Nationwide, which was filed earlier this month (see page 8). In that case the building society secured a multimillion-pound settlement with Dunlop Haywards earlier in the year.
In a statement, Cobbetts managing partner Michael Shaw said: “It would appear that the building society has been the casualty of an alleged serious fraud by a third party. Cobbetts has no comment to make at this time. The matter has been referred to our insurers.”
Nationwide is also suing Browne Jacobson for negligence in relation to an alleged property fraud involving Dunlop Haywards. The claim was filed in the High Court earlier this month for around £3m. Mayer Brown professional indemnity partner Jim Outlon is advising the bank.
Browne Jacobson head of business and professional risk Derek Bambury said: “Banks and other lenders need to remember the hard lessons that they had to learn in the early 1990s, when mortgage fraud was particularly prevalent.”
