The Joint Administrators’ of the failed peer-to-peer finance firm Lendy Ltd have today filed a professional negligence claim against Castleplus Ltd, a valuation company based in Mayfair, the mouseinthecourt can exclusively reveal.
The underlying loans on the platform are understood to total £4.5m collectively crowdfunded by some 5,300 members of the public. Since the advancing of the money in January 2017 none of the investors have seen any of their capital repaid.
Lendy collapsed in May 2019 amid significant financial and regulatory difficulties.
The loans were secured against a riverside marina and boatyard known as Hampton Riviera, Hampton Court Road and an adjacent Chalet. Investors on the Lendy platform will know these as PBL157 & PBL158.
Whether this litigation could directly benefit the investors remains to be seen. It is understood that the issue of exactly who would receive any damages – ie the platform or the investors – is still a live issue. See our coverage of “Lendy Directions – The Background” to explore some of issues resolved following the platforms collapse.
The Chalet (Source: Lendy Website)
The Chalet was described as “London’s ultimate party pad” by the Evening Standard in 2020.
In January 2022 this site exclusively reported on an injunction application over the Marina instigated by Richmond Council in ‘You’re taking the Myck!‘
The defendant in the claim is Castleplus Limited, the trading name of John D Wood: “a well-established Commercial Property Consultant with a superb name and huge amount of brand recognition throughout the U.K.“
It is understood that Castleplus prepared two valuation reports for the adjoining properties in November 2016.
Written documents setting out the particulars of this claim have yet to be made publicly available.
The burden of proof in any professional negligence case rests solely upon the claimant. At this early stage absolutely no inference of wrongdoing should be assumed on the part of the defendant.
This site will keep an eye open for any developments in the litigation. You can support our crowdfunded journalism by donating to the Cheese Fund.
Update 15/12/2022: A spokesperson from RSM UK said:
“The Joint Administrators can confirm that a claim has been filed in respect of loans PBL157/158 (known as the Chalet). Details of the claim will be filed in Court in due course. No further details are available at this stage, nor would it be appropriate to comment any further on this matter currently.”
We also approached Castleplus Ltd for comment.
Case details
The High Court, Kings Bench Division
Case Number: KB-2022-004786
Claimants
1) Lendy Limited (in administration)
2) Saving Stream Security Holding Limited (in administration)
3) Lendy Limited (in administration) as agent on behalf of the “Lenders” as defined in the two loan agreements dated 13 January 2017
The claimants solicitor is Shoosmiths LLP
Defendant
Castleplus Limited
Solicitor details are not currently available
Mouse in the Court 
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