Lucas & Co have been getting various questions about the membership agreement so we will try to answer some of the most commonly asked questions here
1. Joining fee. Is it per person or per unit or per development?
The idea is that there is only ever one joining fee.
So if there are 2 or 3 co purchasers, it is one fee for all of the co purchasers
If the same purchasers were buying more than one unit it is still one joining fee even if the units were in different developments.
2. Joining fee. What is it used for?
It is for the expenses the Action Group is going to have to pay out for (the lawyers call these expense "disbursements").
The main one is the Legal Expense insurance which will be needed to cover all the group members against the risk of paying the other sides costs if the case is unsuccessful for any reason.
Apart from that there is the expense of the leading barrister to advise and do other work.
Apart from that there are Court fees and other miscellaneous expenses.
3. Who will the Legal Expense Insurance be with? Have they been checked out?
We know how important it is to have a trustworthy and reliable insurer!
Lucas & Co have appointed this broker to help us source the best cover. http://www.thejudge.uk/
4. Why has NAL been set up? Why is a separate entity needed?
The reason why it has been structured in this way is to ensure that
a. a situation can be achieved where everyone who participates is treated equally, and,
b. Initial members are able to have their percentage reduced if the matter does not settle and later members are admitted (which may be difficult to achieve otherwise)
5. Will the settlement monies go straight into a trust account before disbursement to claimants and success fees to NAL?
Yes. Any settlement money will go into designated trust account held by the lawyers
6. Who is able to join?
The group is presently open to anyone who invested in an NWIC backed development which
- Is already in liquidation, and,
- who was represented by either Graham and Rosen or Scott Fowler
he group is not yet open for membership in respect of developments not yet in liquidation or for investors represented by Wilsons. We are still accepting registrations of interest for those investors though.
7. What will happen once the group is established?
We will close membership on the 1st June.
We will continue to accept registrations of interest after that date but there is no guarantee that those who apply after 1st June will be admitted to the group. It would all depend on whether the claim for the initial group settles or not.
Our lawyers will then proceed to put forward a generic letter of claim for the members under the pre action protocol procedure
Obviously there are only two outcomes of that. Either the claims will settle under that procedure or they will not.
If the claims do settle during the protocol period the insurers will no doubt insist on confidentiality agreements and any settlement would in be on the basis that the Action Group and Lucas & Co are prevented form acting in future for any other investors against the same defendant.
In that case any investors who had not joined the group would
- not know anything about the terms of settlement, and,
- be left to make their own alternative arrangements about pursuing a claim without the help of this group or our lawyers.
If the claim put forward on behalf of the group does not settle in the Pre Action Protocol period and the matter needs to proceed to Court then a Group Litigation Order (GLO) would be made. That would be advertised to all investors and a date would be set for investors to join in those Court proceedings. If that happens then membership of the group would be reopened.