ATE insurance in action – successful £5m professional negligence judgment for ‘Giambrone’ claimants

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16 October 2017

Temple Legal ProtectionThis case is especially significant because it is the first of its kind – where solicitors were held liable for the full consequences of their failure to properly advise their clients of the risks involved in a ‘disastrous’ holiday home venture in Southern Italy, and failure to conduct the matter in a manner so as to protect the purchasers from those risks.

Penningtons Manches acted for a group of over 100 UK and Ireland based claimant purchasers to successfully defend an appeal brought by law firm Giambrone & Law (Giambrone) and others against the High Court’s prior finding that Giambrone’s advice and conduct was negligent, in breach of contract and in breach of trust.

The judgment handed down by the Court of Appeal ruled in favour of Penningtons Manches’ clients, dismissing all five grounds of appeal brought by the defendants.

Commenting on this judgment, Temple Legal Protection – Senior Underwriter David Chase said: “Group actions such as this are complex, difficult to pursue and highlight how important commercial ATE insurance can be for claimants. It is critical that access to justice is available for litigation of this nature; it may not have proceeded had claimants not received insurance backing.

“With indemnity from Temple Legal Protection, claimants were able to pursue the action with confidence and see justice prevail, unintimidated by the costs risk that they would inevitably face under UK law.”

David Niven, Partner with Penningtons Manches’ commercial dispute resolution team, and an expert at recovering substantial sums in CFA-backed litigation said: “For many of these claimants, the risk of pursuing their claims, which were hard fought by the defendants and their insurer every step of the way, would not have been feasible without the protection of after the event insurance.”

UK market-leader Temple Legal Protection has in-depth experience and a long-term commitment to supporting professional negligence proceedings. We provide ATE insurance and disbursement funding for these types of claims, many of which have resulted in landmark judgments and have shaped the development of this increasingly high profile area of law.

Click here to read the details of the judgment as reported by Penningtons Manches.

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