Newcastle construction company Northern Bear says it will “vigorously defend” a £1.9m legal claim against one of its subsidiaries, Springs Roofing.
The Prestwick Park based company said it has received a notice of formal court proceedings regarding a claim for the money by Engie Regeneration (FHM) Limited, based at Quorum Business Park in Newcastle.
In a stock market announcement, it tells shareholders how it is disappointed to announce that Springs Roofing Limited has received the claim, which it said was disclosed as a contingent liability in the Company’s annual report and accounts for the year ended 31 March 2021, first published in September.
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In the report, Northern Bear says: “One of the group’s subsidiary companies, Springs Roofing Limited, received correspondence during the year regarding a potential claim of up to £2 million on a roofing contract.
“The work was undertaken over a two year period from April 2009 to March 2011.
“The directors of Springs Roofing have reviewed the correspondence and believe that any claim would be entirely without merit.
“This position of the directors is supported by third party technical expert and legal advice taken which suggests that the customer would have great difficulty in making a successful claim.
“All correspondence to date has taken the form of pre action protocol and, should any formal proceedings be issued, Springs Roofing will vigorously defend the claim.
“Accordingly, no provision has been made in the Group’s accounts for this matter.”
The company says correspondence with Engie has continued during 2021 in the form of pre action protocol, adding: “Engie has not, prior to the issue of proceedings, provided any information that would change Springs’ position.
“The directors of Springs intend to defend the claim vigorously and are in the process of reviewing the claim documents alongside their legal advisers. Further updates will be issued as appropriate.”
Engie has been contacted for comment.
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