In hot water over bricks and mortar

Howard Kennedy solicitors is facing a professional negligence claim after its property department allegedly misinformed Secured Property Finance (SPF) about commercial property loans.

The £1.7 million negligence claim was filed in the High Court after SPF alleged that Howard Kennedy did not get the firm security on a loan borrowed by property company Rhymer Investments during a period spanning 2002 and 2003, Legal Week reports.

There are also allegations that Howard Kennedy is guilty of a conflict of interests, after the property department was involved in both sides of the transaction between SPF and Rhymer Investments.

SPF claims that property solicitor Derek Bluston, who handled SPF and was a board member, was also the company secretary of a subsidiary firm in the Rhymer Group.

This news comes as Howard Kennedy is currently defending itself against another claim for negligence worth £2.4 million, after one of its clients alleged that incorrect advice meant it missed out on buying a certain property and therefore lost out on the profits that selling it on would have made.

Howard Kennedy senior partner Trevor Newey commented: "We have only had four claims over the last 20 years. In the last five years we have grown by 200 per cent - that is far more interesting."

People in Britain and Northern Ireland should always ensure that they get reliable legal advice when buying commercial property, by visiting a reliable solicitor.

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