PwC and Lloyds face £55m High Court claim over collapse of Leeds business

THE liquidator of two failed Leeds businesses has launched a High Court claim for £55m against PwC and Lloyds for their role in the collapse of the £180m-turnover motor sales group.

Premier Motor Auctions, which was incorporated as Premier Motorauctions and Premier Motorauctions Leeds, appointed administrators in December 2008 and since then former owner Keith Elliott has been railing against the actions of the company's bank, Lloyds, and the firm of advisors who became its administrators, PwC.

A claim has now been filed with the High Court by the companies' liquidator, Harris Lipman, alleging deliberate misrepresentation, breaches of fiduciary duty and breach of contract.

It was so obvious that Keith Elliott had been done by Lloyds - Let us hope this leads to criminal action being taken against named individuals at Lloyds

The 55-page document sets out a series of claims centred around the allegation that the advisor from PwC, Irving Warnett, conspired with colleagues and with Lloyds Bank to unnecessarily take a healthy company facing a short-term cashflow problem into administration.

PwC received fees of £450,000 from the subsequent administration, while Lloyds took a 50% stake in the business which took over the running of the Premier Motor Auctions business. 

The claim says: "In consequence of the misrepresentations, breaches of duty, conspiracy and/or joint or several intention to cause loss by unlawful means, the claimants have suffered loss by way of the destruction of the enterprise value of the companies and other losses."

The enterprise value has been assessed as up to £46.1m, while other losses are claimed to take the value of the claim up to £55m.

A spokesperson for PwC said: "PwC takes its professional and statutory responsibilities very seriously and acted properly in dealing with this matter. Independent third parties, including the Institute of Chartered Accountants in England and Wales, the Insolvency Service and West Yorkshire Police, have examined Mr Elliot’s claims and found his complaints to be without foundation.  Proceedings have been issued by the liquidator of Premier Motor Auctions which PwC will defend vigorously as they are totally misconceived."

Lloyds did not respond to requests for a comment but has previously said it considers the claims "to be entirely without merit".

PwC has instructed DLA Piper's Leeds-based partners Colin Ashford and Hugh Evans, and Lloyds Bank has appointed CMS Cameron McKenna, to defend the claim.

 

Courtesy of : http://www.thebusinessdesk.com/yorkshire/news/724078-pwc-and-lloyds-face-55m-high-court-claim-over-collapse-of-leeds-business.html?utm_source=newsletter&utm_medium=email&utm_campaign=Yorkshire_22nd_Jul_2015_-_Daily_E-mail#