Substantial success has been achieved on behalf of some of our Members that invested in The Keep Hotel in Whitby, North Yorkshire.
Claims were successfully made against Graham and Rosen and were disposed of at a summary judgment hearing before Deputy Master Bard in the High Court on the 19th June 2018
All previous matters were settled out of court and were therefore concluded on confidential terms. That has meant of course that we have not been able to share any information regarding the agreed terms. As this matter was resolved in Court rather than by a negotiated settlement it is not subject to the usual confidentiality terms. Therefore we can share the outcome in full which was:
Investors recovered 100% of their deposits
Additional interest also paid.
The defendants submitted an appeal but permission for that appeal to proceed was refused
A copy of the full judgment is available here
This is a great outcome and thanks are due to the Solicitors Lucas & Co and their Counsel Dr. Robert Whittock of Hardwicke Chambers.
It is worth noting that The Keep development was fully completed and was functioning as a hotel. This did not protect investor’s deposits unfortunately which were still lost when the developer went into administration. The property was sold by the administrators for an amount sufficient to pay off secured creditors such as banks, but not sufficient to pay off un-secured creditors such as the investors.
We are therefore mindful of the potential for similar scenarios to arise on other developments which pose a risk to investments and endeavour to fully support Action Group Members when our research suggests investments are likely to be threatened and that litigation is the only route possible to secure reimbursement of investment funds.