Professional and financial risks
Who dares pays
In Excalibur Ventures LLC v Texas Keystone Inc & Others [2014] EWHC 3436 the Commercial Court has given a warning to third party funders that they can be liable to pay the costs of the winning party where they fund a hopeless case.
Read moreSupreme Court ruling in eagerly awaited "sale and rent back" test case
The Supreme Court faced the time honoured question of what happens in a fraudulent transaction where there are two innocent parties with competing claims…
Read moreCourt's firm stance refusing to extend valuer's duty of care in tort beyond his contractual duty
In the case of Freemont (Denbigh) Ltd v Knight Frank LLP [2014] EWHC 3347 (Ch), a landowner instructed a valuer to prepare a valuation report for a plot of land.
Read moreDon't (Calder) bank on an analogy to the Part 36 regime
When a party makes a Part 36 Offer, the consequences are clear. The rules and sanctions for failure to beat a Part 36 Offer are set out in the Civil Procedure Rules.
Read moreAmmunition for Defendants: Claimants may have to waive privilege to prove mitigation
The High Court recently found in a solicitors negligence claim that a claimant acted unreasonably in (1) settling an arbitration and then (2) refusing to waive privilege such that the Court could assess the reasonableness of the settlement.
Read moreSRA's compensation fund to provide cover for negligence claims against uninsured firms
A recent article in Legal Futures suggests that it will cost contributors to the SRA's compensation fund £2.5m in the 2014/15 year in order to cover negligence claims against uninsured firms following the ARP's closure last September.
Read moreBrokers' Duties – Business Interruption
Whilst not exactly a reason for brokers to jump for joy, the recent case of Eurokey Recycling Limited v Giles Insurance Brokers Limited has at least reversed the trend of brokers' duties becoming more onerous with each reported case.
Read moreSupreme Court: Insurers counting the costs of negligent will drafting
Insurers beware: where limited funds are available in an estate and there has been a dispute caused by solicitor negligence over a will then the usual 'loser pays' rule may not apply...
Read moreNo reason to delay October 2014 renewal for solicitors
This is traditionally a busy time of year for insurers, brokers and law firms in the run up to the 1 October deadline for securing professional indemnity insurance cover.
Read moreThe Insolvency Service Complaints Gateway – first year report card
In June 2013 the Complaints Gateway was established to provide a single entry point for regulatory complaints against insolvency practitioners.
Read moreThe perils of skiing, reduced bonuses and missed deadlines
The High Court has recently revisited how loss of chance damages will be quantified in professional negligence claims.
Read moreDenton v White guidance applied
In little more than a month since the Court of Appeal handed down its judgment ...
Read moreEnsuring that where there's a Will, the right way is adopted – and by the right person
The Law Society Gazette has recently reported that claims for mishandling a deceased's estate have more than tripled over the last year, according to figures released by the High Court.
Read moreSolicitors beware! Fraudsters want your client account!
A solicitor's client account has long been a target for fraudsters.
Read moreCourt to give clarity on Mitchell?
In order to try and provide much needed clarity on the effects of the Mitchell case on case management, Lord Dyson, the Master of the Rolls, is set to hear three appeals over two days on 16 and 17 June in respect of:
Read moreArck advice could lead to a flood of claims
There have been some recent developments in the on-going saga involving Arck LLP, Yorkshire bank and around 400 disgruntled investors.
Read moreNet contribution Clause: Court of Appeal Guidance
The recent Court of Appeal decision in West v Ian Finlay and Associates has confirmed that a properly drafted net contribution clause ("NCC") is a valid and enforceable contractual term.
Read moreCourt of Appeal confirms no general duty to advise on sophisticated tax planning
Last year the High Court's decision in Mehjoo v Harben Barker gave rise to plenty of lurid headlines.
Read moreLitigation privilege in liquidations
The recent Court of Appeal decision in Rawlinson and Hunter Trustees SA & others v Akers & another [2014] serves to emphasise that third party reports commissioned by liquidators to enable them to consider whether litigation should be commenced ...
Read moreAnnuities – what next for providers and advisers?
The FCA has published its of Thematic Review of Annuities having conducted a substantive review of the annuity market.
Read moreWhen is a solicitor acting as a solicitor?
The High Court has recently given some guidance on whether, when operating its client account, a firm is acting in its capacity as a solicitor.
Read moreMitchell: No excuse for a 'common sense' blind spot
A recent decision by Mr Justice Stuart-Smith in the TCC in The Governor & Company of The Bank of Ireland -v- Philip Park Partnership illustrates that it is possible to push strict emphasis on CPR compliance too far.
Read moreFOS is the one and only
After what has felt like an interminably long wait, the Court of Appeal has today allowed the appeal in Clark v In Focus.
Read moreSEC ups the ante on audits of Chinese companies listed in US
In its "Initial Decision" No. 553, a US Securities and Exchange Commission administrative law court recently concluded that the Chinese affiliates of five international accounting firms breached section 106 of the US Sarbanes-Oxley Act 2002 ...
Read moreNo way out
If there was ever any doubt about the determination of judges to follow the Court of Appeal's decision in Mitchell v NGN [2013] EWCA Civ 1537, cases since then have shown that they are at least taking heed of the warning delivered by the Master of the Rolls.
Read moreRICS UK Valuation Commission Report
Today sees the launch of the RICS UK Valuation Commission Report.
Read moreNow do as you are told!
In the case of Thavatheva Thevarajah -v- John Riordan and Others, the Court of Appeal has once again made clear that, if you fail to follow directions for a claim, you will be penalised.
Read moreArchitect's negligence: Strike Out Application fails to determine limitation position
Edwards-Stuart J recently held in Venulum Property Investments Ltd v Space Architects Ltd & 5 Ors (2013) that it was not appropriate to decide the limitation issues via a strike out application in the absence of full evidence.
Read moreAspect Contracts (Asbestos) Ltd v Higgins Construction Plc
Court of Appeal - 29 November 2013
Read moreYou have been warned - comply or else!
On 27 November 2013 the Court of Appeal handed down its eagerly awaited judgment in Mitchell v News Group Newspapers [2013] EWCA Civ 1526.
Read moreMediate or be damned
In a landmark decision released yesterday, the Court of Appeal has upheld the decision to deprive a Defendant of part of its costs, for failing to respond to repeated requests to mediate, even though it made a Part 36 offer which the Claimant failed to accept until just before trial.
Read moreInterest rate hedging products: mis-selling - Update on Green v Royal Bank of Scotland
The Court of Appeal recently published its judgment in Green v Royal Bank of Scotland Plc [2012] EWHC 3661 QB, the first decided case concerning the alleged mis-selling of Interest Rate Hedging Products ("IRHPs").
Read moreMinistry of Justice's call for evidence leads to cry for fully independent regulation from SRA
The Solicitors Regulation Authority (SRA) has responded to the Ministry of Justice's (MoJ) call for evidence on the regulation of legal services in England and Wales demanding truly independent regulation.
Read moreTax avoidance – the beginning of the end?
Last week HMRC published a consultation document entitled "Raising the stakes and tax avoidance".
Read moreFirst reported vibration white finger professional negligence claim brings white knuckle decision to those advising defendants
The first reported professional negligence case arising out of under-settlements for former miners in the government's vibration white finger ("VWF") compensation scheme has recently come to trial.
Read moreCompetition Commission releases proposed remedies on the supply of statutory audit services
Earlier this week the Competition Commission ("CC") published its provisional decision on the remedies it is considering introducing when it publishes its final report on the supply of statutory audit services to large companies in the UK.
Read moreProposals to increase claims against directors
We note with interest the Government's Discussion Paper, 'Transparency & Trust: Enhancing The Transparency of UK Company Ownership And Increasing Trust in UK Business', published yesterday.
Read moreFlood risk insurance: disaster averted?
In a press release co-ordinated with the Government's announcement to Parliament on 27 June 2013 on infrastructure spending ...
Read moreGuillotine for ATE/CFA recoverability?
A Law Society Gazette report emanating from a recent conference suggested that introduction of a six month time limit is under consideration by MOJ for recoverability of CFA/ATE premiums entered into prior to the 1 April cost reforms.
Read moreInsurer collapse adds to mounting financial pressures within the legal sector
Latvian insurer Balva announced yesterday that it has called in liquidators, leaving approximately 1,300 firms of solicitors across England and Wales effectively without PI insurance cover.
Read moreRedress for unsuitable mortgage advice set to increase as Court of Appeal upholds High Court decision in Emptage v Financial Services Compensation Scheme
The Court of Appeal has today dismissed the appeal in the case of Emptage v Financial Services Compensation Scheme.
Read moreSubstantial delays and the FOS - R (on the application of CALLAND) v FINANCIAL OMBUDSMAN SERVICE LTD (2012)
The court has recently decided that a six and a half year delay between the FOS receiving a complaint from an investor and making a final decision against an IFA did not breach the IFA's rights under Article 6 of the ECHR.
Read moreFlood risk insurance open market – countdown to 31 July
In less than 8 weeks a substantial number of properties may suffer significant loss of capital value if their owners are no longer be able to obtain flood risk insurance.
Read moreWhen the going gets tough, the tough must keep their standards….
The Solicitors Regulation Authority (SRA) yesterday warned solicitors of the danger of the non-compliance trap in tough financial times.
Read moreCPR3.9 Refusal of relief from sanction - solicitors negligence claim now pending
In Venulum Property Investments Ltd v Space Architecture Ltd & Ors, an application was made for permission to extend time for service of the Particulars of Claim as a result of the Claimant's solicitors misreading the relevant rule and failing to serve the Particulars within time.
Read moreInterest Rate Hedging Products Mis-selling Update
(The following article by Simon Greenley/James Wickes was first published in Insurance Day (www.insuranceday.com) on 30 May 2013).
Read moreUnravelling Transactions – The Party's Over
The Supreme Court upheld the Court of Appeal's decision in Futter v Futter and Pitt v Holt as to the scope of the rule In re Hastings-Bass, but has overturned the Court of Appeal's decision on the application of mistake in Pitt.
Read more"Transition management" – possible notifications from FCA investigations
It has been reported in the FT overnight that the FCA is swooping on the London offices of the world’s biggest banks and asset managers in a new probe aimed at a widespread (and reportedly lucrative) type of business known in the industry as "transition management".
Read moreCausation Basics: The breach must cause the loss
In the recent case of Clack v Wrigley Solicitors LLP, the Courts have reaffirmed the principles set down in SAAMCO and Nykredit; liability for loss is limited to the loss attributable to the misconduct.
Read moreEven Consumers Can Forfeit Their Rights For Breach of Policy Conditions
The judgment of Teare J in Parker v National Farmers Mutual [2012] EWHC 2156 (Comm) is worthy of note on a number of fronts, but particularly with regard to the judge's application of ICOBS 8.1, under which an insurer cannot unreasonably reject a consumer policyholder's claim.
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