Indemnity insurance

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

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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

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

rcj 2

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

Supreme Court no1

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

housing

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

Gibraltar

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