Wealth Management: Partnership

  • Print
  • Comments (1)

Readers' comments (1)

  • Withers partner Stephen Cooke agrees. “As an LLP partner you’re still liable for mistakes made by you to the extent those aren’t covered by the partnership assets or your professional indemnity insurance, so LLP status is far from the panacea people think it is,” he says.

    I find Stephen Cooke’s comments above ref an LLP partner’s liability for errors they have made curious for the following reason. Legal proceedings have been taken against Withers by their former clients for negligence (mistakes) I cite the cases of Recruitment Company Wellseley Partners action seeking damages of £374,385 and the Jerrey Herrman case. In the latter case it has been reported that American lawyer Herrman has won damages of £100,000 and costs in the region of £200,000 against Withers for negligence in relation to the purchase of his Chelsea home. It is therefore evident that Withers did not accept liability for the error in this incident, only doing so after the claimant pursued them through the courts at much expense and proved that negligence had taken place. Therefore the question I would like to pose to Mr Cooke is – is he stating that as an LLP partnership Withers accept liability for errors but only once it has been proven in court that negligence has been committed? If this were to be the case this would raise serious issues about the fairness of this system and the position of former clients who are neither large companies nor high net individuals such as Mr Herrmann.

    Unsuitable or offensive? Report this comment

Have your say

Mandatory Required Fields

Mandatory

Comments that are in breach or potential breach of our terms and conditions in particular clause 8, may not be published or, if published, may subsequently be taken down. In addition we may remove any comment where a complaint is made in respect of it. These actions are at our sole discretion.

  • Print
  • Comments (1)