Indemnity insurance

Supreme Court hold law firm not liable for client’s commercial misjudgement

Lord Sumption

The Supreme Court has upheld a ruling that a law firm which had been negligent in drawing up a loan facility agreement was not legally responsible for their client’s decision to actually make the loan. The decision has been branded as good news for solicitors, who “no longer appear to be expected to underwrite claimants’ risks and business ventures”.

March 23rd, 2017

Supreme Court backs insurer’s bid to cap liability for multiple claims against law firm

Beach at Antalya Turkey

The Supreme Court has sided with a leading professional indemnity insurer in interpreting the rules that govern the way insurers can aggregate multiple claims against solicitors. Overturning the Court of Appeal, it was ruling in claims by investors against a law firm arising from failed property developments in Turkey and Morocco.

March 22nd, 2017

Court of Appeal again rejects summary judgment ruling favouring solicitors’ firm

RCJ portrait

TThe Court of Appeal has again allowed an appeal against a ruling giving a firm of solicitors summary judgment, this time in relation to a claim for non-payment of fees and a counter-claim of negligence against them.

March 9th, 2017

Appeal court sends £4m solicitors’ negligence claim to trial

rcj 2

The Court of Appeal has overturned a ruling that gave a national law firm summary judgment in a case alleging that its negligence had caused a company to lose a £4m intellectual property licensing deal with a global engineering giant.

March 8th, 2017

Law Society attacks SRA’s “limited” indemnity insurance research, including failure to consider cybercrime

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Research by the Solicitors Regulation Authority to support its plans to reform indemnity insurance has “clear limitations”, ignoring the recent increase in claims related to cybercrime among other failures, the Law Society has claimed as it geared up for the next round of its battle with the regulator over the reforms.

March 8th, 2017

Law firm insurer fails in High Court bid to recover property fraud losses from solicitor

money laundering2

A highly experienced solicitor who breached the Money Laundering Regulations 2007 in a property transaction that led to a £500,000 fraud did not act dishonestly, the High Court has ruled. As a result, it dismissed a subrogated claim brought by the insurers of London law firm Pemberton Greenish to make her cover what they had to pay out.

February 17th, 2017

Compensation scheme counts cost of indemnity insurance failures – but predicts no new ones this year

Gibraltar

The Financial Services Compensation Scheme (FSCS) has had to increase its provision for general insurance claims by around £45m for the next financial year, because of the failures of Enterprise Insurance and Gable Insurance AG, it has emerged, while it is still paying out for other insurers that used to back solicitors.

January 17th, 2017

Solicitor on hook for £4.65m losses caused by fraudulent partner fails in bid to have insurer pay

mortgage application

A solicitor whose law firm partner has gone to jail for four years for mortgage fraud has lost her bid to have the £4.65m losses being sought from her covered by the firm’s professional indemnity insurer, even though she was not alleged to have had any personal involvement in the frauds.

November 24th, 2016

Firm’s negligent advice to divorcing husband led to “over-generous settlement”

divorce

A judge has ruled that the advice lawyers gave in ancillary relief proceedings was negligent and that if the claimant had been properly advised, he would have settled on better terms. But he dismissed an allegation that the solicitor had fabricated her file notes.

November 18th, 2016

Supreme Court finds for solicitors’ insurer over liability for firm’s debt

Supreme Court sign

The professional indemnity insurer of an insolvent law firm is not required to repay the £581,000 a disbursement funder lost due to the firm’s breach of contract, the Supreme Court has ruled. The justices overturned the Court of Appeal by 4-1.

October 26th, 2016