Awards of damages provide powerful ammunition for insurers
Awards of damages in three recent cases — Clack v Wrigleys Solicitors LLP; AIB Group (UK) plc v Mark Redler & Co; and Whalley v PF Developments — provide powerful ammunition for insurers when seeking to reduce their claims exposure.
A claimant who made a £600,000 loan to a third party based upon the security of shares in a company without conducting adequate checks on the financial standing of the company could not recover the whole of his resultant loss from the solicitors he had retained to draft the loan and security documents relating to the transaction. The judge held, following the decision in SAAMCo, that although the solicitors were found to be negligent in not providing adequate advice in respect of the effectiveness of the security, they were “…not liable for the consequences of risks that Mr Clack would have taken upon himself even if they had performed their duty”. The claimant was therefore awarded just £30,000, which was what the judge considered the claimant would have been paid (as a director of the company) had there been an effective charge over the shares…
If you are registered and logged in to the site, click on the link below to read the rest of the Mills & Reeve briefing. If not, please register or sign in with your details below.
News from Mills & Reeve
News from The Lawyer
Briefings from Mills & Reeve
Animal welfare: recent EU conference — mid-term review of the strategy for the welfare of animals 2012–15
The conference on the achievements of the EU strategy for the welfare of animals 2012–15: mid-term review took place on 12 February 2014.
In a decision in January, the Information Commissioner’s Office found that the Financial Conduct Authority had breached the Freedom of Information Act 2000.
Analysis from The Lawyer
The trend for unbundling legal work is advancing through the law firm ranks but there is still resistance in some quarters - namely in-house. We asked why