JPMorgan Chase is suing Lovells for negligence for an undisclosed amount in the High Court.
It is thought that JPMorgan’s claim would be at least £2.5m, according to City lawyers familiar with Lovells’ partner liabilities.
A Lovells spokesman confirmed the action, but said: “We have no comment to make other than that we shall shortly be submitting a defence denying liability.”
As first revealed on www.thelawyer.com (21 February), the bank is suing Lovells and consultancy Towers Perrin Forster & Crosby over negligent advice they gave on Finnish insurer Sampo’s £143m purchase of Norwich Union’s life and pensions businesses in Poland in 2000.
The merger of CGU and Norwich Union meant that the Polish regulator ordered one of the combined entity’s pensions businesses in Poland to be sold.
JPMorgan filed the claim in the High Court in September 2006, just nine days after a Finnish arbitration court found against it in a case brought by Sampo. A contribution to this arbitration award is part of JPMorgan’s claim against Lovells and Towers Perrin. The arbitration award’s amount has been kept confidential.
Lovells is also gearing up to defend itself against an action brought by Tesco.