CBRE and Warwick Street, a co-valuer , were sued by a plc for negligently over valuing a property portfolio, by over €120m according to Gemini (Eclipse-2006-3) Plc. Gemini claim loss because Barclays loaned them a much larger loan that they needed. The case recently settled without admission of liability for an undisclosed sum. In a rare case of valuers getting sued , it is a reminder to borrowers and valuers that if the valuer goes beyond 15% of the market value (usually confirmed by three valuers) then they are liable to be sued. Remarkably few of these in Ireland given what we have been through.
CBRE and Warwick Street, a former King Sturge subsidiary, have reached agreement without admission of liability to settle a High Court claim that the property firms “negligently overvalued” 33 properties in the Gemini portfolio at £1.235bn. The SPV which issued the securitised notes financing the portfolio’s acquisition by Propinvest in 2006, Gemini (Eclipse 2006-3) Plc, first submitted a claim to the Queens Bench Division’s Commercial Court in July 2013 arguing that the properties should have been valued at £100m lower. In June of this year it emerged that the SPV had added a further seven properties to the claim increasing the aggregate amount of the sum claimed by around £70m. It was expected that the case would be heard in August or September of this year.