Indemnity insurance

High Court rejects claim of solicitors’ negligence involving payments from £230m trust fund

rcj 2

A High Court judge has dismissed a negligence claim against London law firm Farrer & Co in a case involving a client with a $300m (£231m) trust fund. A companion of the man argued that the firm had owed her a duty of care in relation to a £5m gift that the trustees had agreed to pay her but then stopped.

August 10th, 2017

Firms turning to cyber insurance as scammer attacks continue to rise, Law Society survey finds

Concept of internet security

The proportion of law firms targeted by scammers has risen sharply over the last year, especially among larger firms, as has the number of practices taking out cyber-insurance, according to new research from the Law Society. The survey on indemnity insurance also showed that a significant minority of brokers continue not to disclose their commission.

July 24th, 2017

SRA to remove insurance obstacle to switching regulators

Legal Futures Conference Nov16: Innovation

The Solicitors Regulation Authority is to change its indemnity insurance rules to make it easier for law firms to switch regulator, it announced yesterday. In a bid to encourage competition, the SRA will ditch the requirement that firms switching to another approved regulator have to buy run-off cover.

July 14th, 2017

High Court strikes out negligence claim against private client firm

Jersey

The High Court has struck out a negligence claim against London private client specialists Harcus Sinclair on the grounds that it was statute-barred. The judge said it could not be argued that a partner had deliberately concealed his conduct when it was “done in plain sight” of his client and other parties’ lawyers.

May 31st, 2017

What’s in a name? Appeal judges reject pleas of claimant who sued wrong firm

RCJ portrait

Appeal judges have rejected the pleas of a claimant who, faced by two law firms with similar names set up by the same solicitor, sued the wrong one. The court heard how Godfrey Morgan Solicitors and Godfrey Morgan Solicitors Limited were run “in parallel, as distinct businesses”.

May 16th, 2017

Non-lawyer managers setting bar high for equity partners, survey finds

Karen Hain

Fee income per partner at larger firms soared last year from an average of £777,000 to almost £1.4m, a survey has found. Accountants MHA, who produce an annual benchmarking report, said the main reason was a fall in the number of equity partners at these firms, helped by an increase in profitable work.

May 10th, 2017

Bird & Bird loses bid to overturn £2m planning negligence ruling

Royal Courts of Justice

A leading City law firm has failed to persuade the Court of Appeal to overturn a ruling that it was negligent in failing to highlight a major development planned to take place near a £26m residential property whose purchase it was handling.

May 10th, 2017

Court of Appeal orders controversial firm to compensate ex-miner for negligence

miners helment

The Court of Appeal has overturned a ruling that Raleys – the controversial but now defunct Barnsley law firm – should not have to compensate a miner who argued that its admitted negligence had caused him to settle a claim at an undervalue. Otherwise, it would be “far too easy for negligent solicitors to raise huge obstacles to claimants”.

May 2nd, 2017

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