CITY firm Jaques & Lewis is being sued by a Swedish bank over alleged land deal losses of u14.75 million.
Bank Svenska Handelsbanken lent the sum to the Chainrock Corporation, based in the Netherlands Antilles, secured against land.
The bank, in a writ issued by Clifford Chance, says the firm failed to validate a mortgage against creditors and liquidators of Chainrock by entering it in the Slavenburg Index.
Later, Blue Arrow obtained a debenture on Chainrock's assets, registered its interest on the Slavenburg Index and on 10 May registered a charge against the company with retrospective effect to 21 December 1988.
The bank claims Jaques & Lewis was in breach of terms of agreement and breach of duty of care in failing to note the mortgage on the Slavenburg Index.
It claims that failing repayment of the sums due from Chainrock on the loan, and following the charge made by Blue Arrow, it has suffered loss and damage.
Jaques & Lewis marketing director Keith Lindsay says the firm will “strongly deny the charges made by the bank”.