Barclays Private Clients International and Barclays Bank are suing Savills Private Finance, valuer Stocker & Roberts and two law firms for losses incurred on mortgage business that could amount to £12m.
The case relates to a number of transactions between 2006 and 2007. Barclays alleges a broker who was dismissed by Savills in 2007, instructed the services of Stocker & Roberts to value several properties.
Barclays claims these pro- perties were significantly overvalued.
The bank also alleges the broker received payment of £70,000 and £10,000 in two transactions shortly after the deals completed.
Barclays is suing two law firms, alleging negligence.
A Savills spokesman says: “Savills Private Finance confirms legal proceedings have been issued against it in relation to five mortgages arranged by one of its employees four years ago.
“SPF can confirm that the employee involved was dismissed in November 2007, when irregularities first came to light but it can make no further comments with regard to proceedings as these are ongoing.”
Barclays says it cannot comment on current litigation.