Legal News

The importance of explaining salient terms in any contract to clients and recording advice provided in writing cannot be over emphasised. It would be reasonable for one to hold a complacent belief that a professional client is capable of understanding contracts. Such was the case in a recent professional negligence claim we, at Duncan Lewis, brought against a firm of solicitors. Our client retained a firm of solicitor to assist in an off plan purchase of a property from a developer.

The firm of solicitors (“Defendant”) sent a client care letter on or around 22 October 2007 to our client. In the letter the Defendant also confirmed to our client that the completion date for the property would be January 2009 but crucially, failed to explain on receipt of the contract from the developer, that the completion date was tentative and not binding. The contract stipulated that the completion date will be 15 days after service of a notice to complete.

Unfortunately, the world economy collapsed in the latter part of 2007 and the developer paused work at the site until sometime in 2012. The developer eventually completed the property and served a notice to complete on our client. Our client failed to complete and thereafter the Developer issued a claim for specific performance. It was our client’s case that he did not complete the property on the basis that he reasonably believed that it was abandoned by the developer and furthermore, the completion date advised by his solicitor had passed. We advised our client that he can bring a claim of professional negligence against his previous solicitor due to their failure to advise him on the completion date.

A claim was issued against the Defendant on grounds of failure to advise our client properly in particular, the fact the contract contained no completion date. The lack of a completion date meant that in fact there was no certainty to the purchase and meant that any sums paid by our client to the Defendant would have been tied up with no return on investment for an undefined time. Furthermore, it meant that the Developer could serve a Notice to Complete at any time and our client would be expected to complete which is what occurred and left him in a risky position. Suffice to say, Duncan Lewis was successful in this professional negligence claim and obtained significant damages and costs for our client as a result.

Author, Shilpa Sehgal is a Solicitor in the Civil Litigation Department of Duncan Lewis. Shilpa’s expertise lie in professional negligence claims, predominantly against solicitors.

Duncan Lewis; professional negligence litigation team has a niche claimant practice acting for individuals against legal (solicitors, barristers) and construction professionals (architects, surveyors).

If you are seeking professional advice and assistance on such matters do not hesitate to call us on 033 3772 0409.