A £100m claim brought against Eversheds Sutherland by Northern Rock Asset Management (NRAM) has been settled.
NRAM’s claim, which came to light in late 2016, alleged professional negligence in relation to advice the legacy Eversheds firm provided following a review of two annual statements for a ‘together loan’ – a combination of a secured mortgage and an unsecured loan at a single interest rate with one combined monthly payment.
The £100m claim was understood to have first been made in 2014, although progress in the early years had been slow. Eversheds and NRAM have now agreed a resolution, however, before the matter reached court.
An Eversheds spokesperson said: ‘The resolution was agreed at a mediation on 6 February 2018 and the terms are confidential.’ An NRAM spokesperson confirmed the resolution.
NRAM had claimed the annual statements Eversheds advised on in 2010 ‘did not comply with the requirements of the Consumer Credit Act’ and the advice failed to be provided within a ‘reasonable time’. It also alleged the advice meant the loans were not enforceable and NRAM became liable to repay or refund all charges and interest it had charged to borrowers.
Eversheds denied the claim and in 2016 said it was being ‘vigorously defended’.