Almost 200 British property investors who were ill-advised by Italian law firm Giambrone want their deposits back. Trouble is, according to the claimants’ representatives, Giambrone and professional negligence indemnity insurer AIG say there’s no more insurance money.
The Law Society Gazette reported that Giambrone has been court-ordered to compensate 180 homebuyers after the law firm acted negligently when it gave advice about luxury developments in Calabria which were eventually seized due to alleged links to the Italian Mafia and the IRA.
According to the report, deposits from the prospective purchasers ranged from £30,000 to as much as £105,000. Giambrone was found liable for the full consequences of its failure to properly advise clients of the risks, including the risk of Mafia involvement, which the court said the law firm had knowledge of.
“The next step for the team at Penningtons Manches is to pursue AIG and argue that each client has a separate entitlement to the £3 million indemnity insurance, the minimum amount that solicitors are required to hold,” said the firm representing the claimants, as quoted by the report.
Acting on behalf of the investors are UK firms Penningtons Manches and Edwin Coe. The report said AIG declined to comment.
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