Indemnity insurance

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

Solicitors’ mistakes costing indemnity insurers £200m a year

Crispin Passmore 2

Solicitors’ professional indemnity insurers paid out around £2bn due to negligence claims in the 10 years to 2014, startling new figures released yesterday by the Solicitors Regulation Authority revealed. The regulator said that around 142,000 claims were made in that decade, one in five of which was successful.

October 21st, 2016

High Court throws out £5m fraud claim against solicitor and legal executive

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The High Court has thrown out a £5m fraud and conspiracy claim against a newly qualified solicitor and experienced legal executive who acted for a Docklands developer. Mr Justice Mann said the pair had suffered “years of anxiety” as a result of the claim, “culminating in a trial which they should not have had”.

October 13th, 2016

Legal finance company set to delist as it awaits Supreme Court ruling

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A finance company for law firms has announced that it wants to delist from the stock exchange as it awaits a crucial Supreme Court ruling. It is the first of two Supreme Court cases that focus on interpretation of the minimum terms and conditions for solicitors’ insurance, the second of which was before the justices yesterday.

October 11th, 2016

Law firm duped by imposter successfully defends claim over £1m property fraud


In what is being hailed as a significant victory for conveyancers, a law firm and estate agency have defeated a claim brought against them after it turned out that the seller they acted for was a fraudster. The fraud only came to light when the real owner walked past his property and saw builders ripping out the kitchen.

October 3rd, 2016

D-Day for firms covered by insolvent Enterprise Insurance


Law firms that were insured by the now insolvent Enterprise Insurance have until today to arrange alternative cover. The Solicitors Regulation Authority said on Friday that around two-thirds of the 43 firms that were with the Gibraltar-based insurer have already secured alternative cover.

August 22nd, 2016

LSB declines to produce the “right” answer on indemnity insurance

Neil Buckley

The Legal Services Board has shied away from recommending a single solution which all the legal regulators should follow on indemnity insurance. The LSB instead called on the regulators to work more closely together on the issue.

July 25th, 2016

Leigh Day “breached duty” to thousands of Trafigura claimants who did not receive share of £30m settlement

toxic waste

Leading group action law firm Leigh Day has been found guilty of professional negligence after 6,624 of the claimants it represented in the high-profile Trafigura case were not paid their share of the £30m settlement. Leigh Day said it tried its “damnedest” to ensure everyone received their payments.

June 17th, 2016

High Court throws out negligence claim against law firm and counsel

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The High Court has summarily dismissed a professional negligence claim brought by a hotel company against Midlands firm Wright Hassall and a barrister, Max Mallin. The case involved the conversion of a Victorian office building in Manchester into a four-star hotel.

June 10th, 2016

CLC consults on open market indemnity scheme in bid to attract solicitors

Sheila Kumar

The Council for Licensed Conveyancers (CLC) is planning to introduce solicitor-style indemnity insurance arrangements, in a bid to make it easier for law firms to switch regulator. Embracing an open market scheme instead of a master policy would help “make a reality” of the “theoretical” freedom of law firms to change.

May 6th, 2016