The claims centred on claims over allegedly false property valuations relating to work completed by the firm before 2007, when it ceased trading.
Spicerhaart said it has endeavoured to settle legitimate claims over the last five years on behalf of Woltons, despite its status as a standalone subsidiary with no recourse to the assets of the group.
The firm said: “The nature of these claims, relying on subjective property valuations made many years ago, has resulted in a number of long and very costly legal cases with associated legal fees often much larger than the claims themselves.”
The statement continued: “Recent claims have increasingly been made at the instigation of ambulance chasing lawyers rather than legitimate claims from lenders.”
Alison Beech, business development director at Spicerhaart, said: “It’s very much business as usual for Valunation. For other firms, PI is going up and fee revenue is going down, which continues to pose a significant challenge.”
Richard Sexton at surveying firm e-surv, said: “I’m surprised the number of claims has grown over the last 12 months for the firm, but if for example it did more work for sub-prime lenders they would still be receiving more claims than the average.”
He added: “It’s happening to firms all over, including the large Scottish surveyor, Barr Brady very recently, as rising claims levels mix with falling business levels. That’s a toxic mix.”
H.C. Woltons & Sons was established in 1910 and bought by Spicerhaart in 1995.
