Indemnity insurance

Three solicitors from East London have been fined by the Solicitors Disciplinary Tribunal for failing to secure or check that indemnity insurance was in place for their firm, and continuing to accept new clients when they should have been closing it down.

The Solicitors Disciplinary Tribunal has voiced “serious doubts” over whether a solicitor, aged 79 and “with almost 50 years of exemplary service”, should have been referred to it for prosecution. Reginald Hemmings told the tribunal he found the experience “extremely distressing”.

The High Court has found a Newcastle law firm’s conduct an abuse of process after it repeatedly failed to pay the proper court fees when it issued claims. As a result, some of the professional negligence cases it was pursuing against another firm were time-barred.

A Midlands law firm making a claim for fees against former husband-and-wife clients has successfully applied for their £2.6m negligence counterclaim to be struck out. The court emphasised that a breach of fiduciary duty by a solicitor does not necessarily mean their entitlement to be paid is forfeited.

Personal injury, commercial and family work will all fuel negligence claims against lawyers, insurance specialist BLM has warned in a white paper. It also predicted that a new source of claims could come from the “rapid pace of reform” in legal services, testing new systems and processes “to their limit”.

A High Court judge has launched an extraordinary attack on a senior property partner, saying that although he was “on the whole” an honest witness, he “plainly cut corners all the time in his practice”. Mrs Justice Proudman said Michael Parker regarded himself as a “man of commerce”.

Solicitors acting for both sides in property transactions are under a duty to disclose crucial details to lenders, the Court of Appeal has ruled. They are not expected to act as a “detective or bloodhound”, but should report adverse “non-confidential information”.

The Court of Appeal has made an additional finding of negligence against leading London law firm Withers over its drafting of an LLP agreement and increased the £1.6m in damages awarded in the High Court by a further £375,000.

Separate representation for lenders and borrowers in conveyancing transactions “should be the norm”, a senior manager at insurer Zurich has said. Michael Blüthner Speight described the increased cost would be “minimal”.

The Court of Appeal has overturned a High Court decision striking out a negligence claim against Birmingham law firm Blakemores, now in administration, and also set aside a default judgment obtained by the firm for £635,500 in costs.