pnBlawg

the professional negligence blog

A collaboration between Rebmark Legal Solutions and 1 Chancery Lane

Liability of third party funders / coverage re. costs in PL policies

The Court of Appeal handed down a judgment in the case of Legg & Ors v. Aviva [2016] EWCA Civ 97 yesterday. The case concerned the scope and application of the rule relating to a party’s ability to secure an adverse costs order against a third party who funded the unsuccessful claim by a claimant /defence of a defendant.  Additionally it concerned the proper approach to the interpre... [More]

Aspect Contracts – Adjudication Assessed…

Aspect Contracts – Adjudication Assessed…       The Supreme Court finally had an opportunity to consider the adjudication regime in the case of Aspect Contracts (Asbestos) Limited v Higgins Construction Plc [2015] 1 WLR 2961.   Although this case is from as long ago as 2015, I had to cite it in Court last week and remembered that it was one that I should have inclu... [More]

Caught out by the court fee: a forewarning on issuing claims protectively

Facts The case of Richard Lewis & Others v Ward Hadaway [2015] EWHC 3503 (Ch) concerned 31 professional negligence claims brought against a firm of solicitors relating to conveyancing transactions. In the pre-action correspondence, the individual claims were each valued in the hundreds of thousands with a collective worth of £9 million. However, when the Claimants’ solicitors f... [More]

Professionals, allegations of fraud, and witness credibility

The headline outcome from Mansion Estates Ltd v Hayre & Co (A Firm) (2016) is HHJ Saffmann considering that it is no less “inherently improbable” that a solicitor would set out to mislead the court than any other person, and going on to find that the Defendant’s documents were “materially compromised”. This was not a case where the judge could find one party had &... [More]

Is an extension to the SAAMCO principle on the horizon?

Background Property valuation is seldom an exact science; it involves the consideration of both present factors and future contingencies.  With the property crashes of the last two decades came a wealth of litigation considering both the scope of the duty of care owed by valuers to lenders and the extent to which losses caused by negligent valuations are recoverable. One such case which t... [More]

No dual test for remoteness, says the Court of Appeal

The test for remoteness in tort is damage that is reasonably foreseeable. However the test for remoteness in contract is damage that ought to be in the reasonable contemplation of the parties. There are differences between the two. Damage can be reasonably foreseeable (in which case it satisfies the remoteness test in tort) but also highly unusual or unlikely, such as a particularly lucrative cont... [More]

Valuation not negligent in light of earlier transaction: Titan Europe v Colliers

  The Court of Appeal has overturned a High Court trial judge’s decision that a valuer was negligent on a large commercial valuation. The valuation related to commercial property in Germany and the valuation provided in December 2005 was €135 million.  The trial judge applied a bracket of 15% because of the unusual nature of the property and held that the true value at that ti... [More]

Standstill agreement covers deceit claims

The Court of Appeal has held that a standstill agreement in a lender claim against valuers was broad enough to cover claims for fraud despite being expressed to deal with claims in negligence and breach of contract.    At the time when the lender sent the Letter of Claim – relating to 46 valuations – no fraud was suspected.  It alleged negligence and breach of contr... [More]

Will the introduction of adjudication in Professional Negligence cases have the same impact as the introduction of a similar scheme in the Construction Court?

On 1 February 2015 a voluntary pilot scheme for the adjudication of solicitors’ professional negligence claims was launched. Mr Justice Ramsey was to consider three test cases (with a quantum value of £100,000 or less) with feedback on those cases due to be provided by June 2015. It is now nearly November 2015, and not much has been heard: the latest update is that only one pilot case ... [More]