High Court slams law firm for £1.5m mishandling in Kent property scandal
A High Court ruling has found that Ewan & Co, a law firm, mishandled funds linked to a Kent property deal. The firm was accused of making unauthorised payments, failing to meet financial obligations, and breaching its duties to the client, NRD Property. The court ordered the firm to repay substantial sums, including unpaid taxes and misdirected funds.
The case centred on the purchase and refinancing of a site in Chatham known as the Bed Shop. Ewan & Co had agreed to manage the transaction but failed to fulfil key responsibilities. In early 2019, the firm committed to redeeming an existing charge on the property but never followed through.
The firm also made unauthorised payments totalling over £155,000 to unrelated third parties. More significantly, it transferred £1 million directly to the seller's solicitors without prior approval and retained around £200,000 meant for Stamp Duty Land Tax (SDLT) and other expenses. Further unauthorised payments included £1 million to Investpek and over £285,000 to another solicitors' firm for an unrelated property, both without proper justification or documentation. NRD Property claimed that Ewan & Co had misused funds, neglected to redeem borrowing secured on the property, and failed to pay the required SDLT. The High Court upheld these claims, ruling that the firm must account for the misdirected sums, including the unpaid tax.
The court's decision requires Ewan & Co to repay the misused funds, along with interest. However, recovery may depend on the firm's remaining assets, insurance coverage, or access to compensation schemes. The ruling confirms the firm's failure to meet its obligations in handling the Kent property transaction.
