Professional Negligence Solicitors

If you have retained solicitors in a transaction or litigation and you consider you have received incorrect advice from the law firm or there has been an error or clear mistake made by your solicitor which has caused you financial loss, then you need a professional negligence solicitor.

Our professional negligence lawyers not only have expertise and experience in handling professional negligence claims but are supported within Myerson by lawyers who regularly deal with the type of transaction or litigation which has gone wrong. Myerson is a full-service commercial and personal law firm and thus can call on expertise in many areas of the law.

Our professional negligence lawyers have a wealth of experience in dealing with professional negligence cases against solicitors, and because the firm has expertise in commercial litigation, company transactions, property transactions, wills and probate, construction, employment and divorce, we are best-placed to understand how most commercial matters should have proceeded and where it may have gone wrong.

As the firm does not deal with personal injury, medical, criminal or immigration claims, we are unable to assist with professional negligence claims against solicitors involving those areas of law.

Negligence claims we have dealt with against solicitors

• A claim by an individual against her former solicitors who negligently handled a claim against a utility company and her local council which had been struck out. The claim was successfully settled before trial.
• A claim by a company against solicitors who negligently handled litigation by failing to exchange witness statements in time. The client’s claim was struck out. We took over the client’s professional negligence claim and the claim was settled for a 6 figure sum.
• A claim on behalf of a company against solicitors because they failed to obtain permission to rely on expert evidence and admissions were made during the trial which were damaging to the client. The matter was settled very favourably for the client.
• Claims by various companies who had interest bank rate swap claims but whose solicitors did not deal with them in time before limitation expired. The claims against the companies’ former solicitors settled at mediation.
• Claims by 3 individuals who would have been left legacies in a will had the solicitor affected the testator’s wishes in good time before his death.
• Claims by Individuals who were intended beneficiaries of a Will whose gifts failed due to negligent drafting by the solicitor.
• A claim on behalf of a property purchaser who was not advised by a conveyancer that his property was located above a coal mine.

If you have retained solicitors in a transaction or litigation and you consider you have received incorrect advice or there has been an error or clear mistake made on your matter, this may be as a result of the law firm’s failures, the failures of the barrister they have instructed, or both.

Sometimes a barrister may be instructed on a direct access basis, and the failures may therefore fall squarely with the barrister.

Our professional negligence lawyers have expertise and experience in handling professional negligence claims against barristers in relation to commercial matters. We can advise you how a particular matter should have proceeded and where it may have gone wrong.

Property transactions can be very complex. Our commercial and residential property department is one of the largest in the Northwest and is ranked top tier in Legal 500.

Our expertise in property matters extends to professional negligence claims involving property professionals, and we have significant experience in successfully bringing claims against commercial property solicitors, surveyors and architects.

Property negligence claims make up a large proportion of professional negligence claims brought.

Examples of negligence by property solicitors:

• Failing to register an option or other property interest;
• Failing to register an overage clause;
• Failing to undertake necessary property searches;
• Failing to advise on the absence of a right of way;
• Failing to advise on restrictions on a property title such as a restrictive covenant;
• Failing to advise on issues with planning permission;
• Failing to spot a defect on the title or ownership of a property;
• Failing to check the tenancy rights of any tenants occupying a property;
• Failing to warn a client of the risks involved in carrying out repairs to a property prior to the exchange of contracts;
• Failing to warn a client of the risk involved in exchanging contracts on a purchase before exchanging contracts on a sale;
• Failing to warn a client of the dangers in exchanging contracts on a purchase prior to arranging a mortgage;
• Failing to notice that a lease of business premises restricted the use intended by a client;
• Failing to advise properly on the terms of a lease or tenancy agreement;
• Failing to ensure entries are removed from the property register prior to completion;
• Failing to properly advise on rent review clauses;
• Failing to properly break a lease

Negligence claims we have dealt with against real estate lawyers

• A claim by a business whose first set of solicitors had been negligent by failing to serve a Lease Break Notice in time and whose second set of solicitors were negligent in handling the litigation claim.
• A claim by a property development company which was negligently advised by a solicitor in relation to a property option agreement which meant that the project was not fundable and resulted in the company losing a valuable site.
• A claim against solicitors for serving invalid break notices on the company’s landlord. The client was therefore liable for rent and other obligations under the lease for a further 2 years.
• A claim against solicitors who failed to serve a statutory notice on the company’s tenant which would have enabled the company to recover various charges from the tenant and its guarantor.
• A claim against solicitors who acted in connection with the purchase of a long leasehold of commercial premises . The client’s solicitor failed to advise him of the various onerous obligations that he had due to the head lease on the property.
• Claims by individuals against their former conveyancing solicitors because the solicitors failed to advise the clients of issues with their residential property when dealing with their purchase.
• A claim against solicitors because the solicitor failed to properly transfer title to a property to the client.

We are also able to identify when a surveyor may have breached their professional duties. The law provides that if a surveyor provides a valuation which is more than 10-15% above or below the correct value, that surveyor is likely to be found to be negligent.

An important factor in investigating a potential negligence claim against a surveyor is the type of report that was undertaken and provided to the client. In most cases, negligence claims are made when a full structural survey is issued. Full structural surveys provide the most information about the potential property meaning that there is more scope for potential negligence.

The surveyor report that provides the least detail is a mortgage valuation. Mortgage valuations provide only a basic property valuation meaning that other elements of the property such as its structural safety are usually not taken into account. Due to this lack of information, it can be difficult to claim negligence, however, if the negligence claim is specifically relating to the mortgage in question you may be able to make a claim.

We have successfully brought claims against surveyors for the following errors:

• Failing to consider comparable properties in the local area.
• Providing a valuation on an incorrect basis e.g. potential value rather than current market value.
• Conducting a “drive-by” valuation instead of a full inspection.
• Failure to spot defects in the property such as the presence of asbestos.
• Failure to identify issues with development potential.

Architects are regularly instructed in commercial and residential property developments. Sometimes their failures can lead a property owner to suffer significant losses.

If an architect does not provide competent advice and you suffer a financial loss as a result, you may be able to bring a professional negligence claim against the architect in question.

It is common for individuals to hire architects as a way of relieving some of the responsibilities when they are designing or developing a commercial or residential property. In this instance, it is the duty of the architect to provide certain professional skills that meet a required level of competence. The architect will often plan the initial stages of the proposed building along with liaising with the construction team. Sometimes an architect will project manage a development.

The consequences of architect negligence can be extremely severe with potentially huge financial losses. There could be a situation where due to the architect’s negligence a property requires significant extra building work or even demolition.

Working closely with our commercial and property teams, we understand the issues that may be relevant when investigating a professional negligence claim against an architect.

When identifying whether an architect has breached their professional duties, we will consider the failures and identify whether they fall below the standard to be expected of a reasonably competent architect. This usually require the input of an expert.

If an architect outsources specific tasks on a project to a third party and those tasks are not undertaken properly, it may be possible to hold the architect responsible for the mistakes of those third parties and claim compensation from the architect.

Examples:

• Providing insufficient supervision during a project.
• Failing to manage a project effectively.
• Failing to advise properly in relation to property plans or drawings.
• Failing to obtain sufficient planning permission.
• Failing to ensure a build is commenced within the time limits of the planning permission.
• Failing to ensure a build is in accordance with terms of the planning permission,
• Failing to comply with necessary building regulations.

Given the complexities of our tax system, it is very common for individuals and companies to seek the assistance of tax advisers. Advice is often sought regarding tax avoidance schemes which allow an individual to reduce the amount of tax that might be otherwise payable.

In certain situations, HMRC can take issues with such schemes meaning that the clients are left with a large, backdated tax bills plus potential fines for late payments.

Tax advisers owe their clients a duty of care. It is a legal requirement that the tax advisor will provide a reasonably competent level of service. If this duty is breached and a financial loss is caused, there may be grounds to bring a professional negligence claim against the tax advisor in question.

Examples or tax advisor negligence:

• Failing to consider the VAT implications on a property transaction.
• Missing deadlines for claiming tax credits or property related capital allowances.
• Failing to reorganise group companies to reduce avoidable tax charges.
• Failing to advise on proper payroll procedures.
• Failing to provide standard tax advice to companies setting up or exiting the UK market.
• Missing consequential adverse implications when giving commercial or basic tax advice.
• Failing to advise on tax consequences of transactions such as disincorporation.
• Failing to ensure all relevant criteria are met when facilitating a claim for specific tax relief.
• Failing to advise on inheritance tax relief and how this liability can be reduced.

Accountants are regulated by one of two professional organisations.

• The Association of Certified Chartered Accountants (ACCA)
• The Institute of Chartered Accountants in England & Wales (ICAEW)

Both of these organisations offer complaint procedures for individuals who have suffered from negligent advice. While this form of complaint procedure can provide positive outcomes, there are instances where the outcome is unsatisfactory, and you may need to take further action to recover your losses.

Examples of accountant negligence:

• Submitting incorrect tax returns or accounts.
• Overpayment of tax due to incorrect identification of non-vatable items.
• Late filing documents with HMRC and Companies House.
• Failing to give proper tax advice.
• Failing to advise a sole trader to set up as a limited company so as to claim tax relief.
• Failing to detect fraud when auditing a company’s accounts.

If you engage the services of an independent financial adviser (IFA) they have a duty to act with reasonable care and skill when providing advice or handling or investing money.

If you have received negligent advice or been mis-sold a financial product, and suffered a loss as a result, you may be able to bring a professional negligence claim.

Independent financial advisers are regulated by the Financial Conduct Authority (FCA). The FCA has a Code of Conduct which all financial advisers should abide by.

If you believe you have received negligent advice, you should first make a complaint to the firm’s complaints department. However, internal complaints procedures do not always result in a satisfactory result. If so, your next step should be to contact the Financial Services Ombudsman.

This independent body can carry out an investigation and may be able to award compensation, although there are different limits for compensation which can be awarded by the Financial Ombudsman which depend on when the complaint was referred to it. Depending on the limit of compensation which applies, any compensation awarded by the Ombudsman may not reflect the losses you have suffered as a result of the IFA’s negligence, and court proceedings may need to be brought to seek to recover the full amount of losses you have suffered. Our professional negligence solicitors can assist with complaints to the Ombudsman and court proceedings where necessary.

Negligence involving IFAs can be complex and technical. To successfully bring a negligence claim against the financial adviser in question, you will have to show that the advice you received fell below the standard of a reasonably competent IFA.

That will often require expert evidence from an independent financial adviser.

Loss alone does not constitute grounds for a negligence claim against a financial adviser. For example, if an investment loses value due to unforeseen economic circumstances, that is unlikely to form the basis for a negligence claim.

We have a wealth of experience in successfully brining claims against IFA’s for poor investment decisions where the risk profile of investments significantly diverges from the level of risk a client was prepared to take.

To be successful in a claim for professional negligence you must show 3 things:

• You were owed a duty of care by the professional
• The professional breached their duty of care
•  The breach has caused you to suffer a loss

Showing that a professional has breached their duty of care requires you to prove that the services provided by the professional fell below the standard normally expected of a reasonably competent professional in that field of expertise.

Receiving a poor service from a professional is different from negligence. In those cases where poor service is involved, a complaint to the Legal Ombudsman might be made.

To be successful with a claim you need to be able to demonstrate that you were owed a duty of care by the professional involved, the professional breached the duty of care, and the breach caused a loss to you.

You will also need to demonstrate that the services provided by the professional fell below the standards normally expected of a reasonably competent professional in that field of expertise.

It is not always the case that receiving bad service or an error on the part of the professional means that you have a negligence claim against them.

In the first instance, you should call us to speak to one of our expert professional negligence lawyers who will look at the facts of your case and advise you as to whether you may have a negligence claim.

It may be the case that you do not have a negligence claim against the professional but there is another type of claim that you can bring against them, such as a claim for breach of contract or statutory duty, or in some cases misrepresentation or fraud. Our professional negligence specialists can advise you on this.

In some instances, the professional may be insolvent or have limited assets. This is something that our professional negligence solicitors will investigate and advise you on at the start of a negligence claim. If this is the case, it may still be possible to pursue a claim against the professional as they may have professional indemnity insurance in place, and in cases where a company is insolvent, a claim can sometimes be brought against the company’s insurers directly.

If your negligence claim is successful, a court will likely order you are paid compensation known as damages. The aim of damages for professional negligence is to put you in the position you would have been in had the negligence not occurred (insofar as that is possible).

How the court assesses compensation can be complex and needs specialist advice.

Our professional negligence lawyers will advise you on what losses you can claim and how they are likely to be valued.

To be awarded damages you will need to prove that the loss you have suffered was caused as a direct result of the negligent actions of the professional, which may or may not be straightforward depending on the facts of your case. Our professional negligence lawyers will be able to guide you on what losses you can claim in your case and how they will be valued.

It is also important to be aware of the obligation to mitigate your loss, which means that you must take reasonable steps to minimise the loss you suffer as a result of the professional’s negligence.

How you do that depends on the facts of your case, and our professional negligence specialists will advise you on what steps you need to take to mitigate your losses and what it may mean if you do not mitigate your losses.

Your damages may be reduced if the court considers you have failed to mitigate your loss.

The period within which you must bring a claim for professional negligence is known as limitation. Limitation can be complex.

In most cases, you will have six years to make a professional negligence claim from the date that the cause of action accrued. The 6-year period may start to run from the date the negligence occurred, or from a later depending on when the negligence caused you to suffer a loss.

You may have further time to bring a negligence claim if you only became aware of the negligence at a later date.

Court proceedings must be issued within certain time limits. If the time limit has passed, you may be out of time to bring a negligence claim against the professional.

If the professional has entered a formal insolvency process and it had insurance at the relevant time, it may be possible to pursue your negligence claim against the professional’s insurer.

You should call to speak to one of our expert professional negligence lawyers who will discuss the background to your case on a free no obligation basis, to see whether you may have a claim for professional negligence claim. It is always advisable to consult with a solicitor as soon as you become aware that you might have a negligence claim, to avoid missing any time limits to bring your claim.

Provided that there are no urgent issues as regards time limits, there are certain steps that should be taken before issuing court proceedings.

After investigating the facts of your case, our professional negligence lawyers will often follow a procedure called the ‘Professional Negligence Pre-Action Protocol’ which is designed to encourage parties to settle a dispute without the need for court proceedings. Professional negligence claims  against some constructions professional, such as architects, are governed by  different procedure. 

Where a claim is governed by the Professional Negligence Pre-Action Protocol, the first stage of the Protocol is to send a Letter of Claim to the professional involved. This letter will set out the factual and legal basis for your claim. The professional then has three months to investigate your negligence claim. They should provide a Letter of Response in which they will either admit the claim and make proposals for settlement or they will dispute the claim. If the claim is disputed, the professional should set out their reasons in their Letter of Response.

In some cases, the professional may raise an argument called contributory negligence. This means that they are saying that you have caused or contributed to the losses you have suffered and which you are claiming from the professional. If this argument is raised, our professional negligence solicitors will be able to advise you as to the merits of these arguments and the effect that this may have on any award or settlement.

Once we receive the professional’s response, our professional negligence lawyers will advise you as to your options for the next steps. If the claim is disputed, it may be that further correspondence with the professional is recommended to try to resolve the matter or we may recommend that court proceedings are issued.

The majority of cases settle before trial, and in some cases, settlement is achieved before court proceedings are issued.  If the case proceeds to trial, it may be that you and any key witnesses will need to attend court to give evidence. However, our professional negligence lawyers will be there to provide guidance at every stage.

The cost to bring a professional negligence claim will vary depending on the nature and complexity of your claim. Once we have reviewed your claim. We will be able to provide you with an estimate of our costs.

There is a range of funding options available and our professional negligence lawyers will talk you through all your options at the start of your matter.

Our professional negligence experts understand that you may not be able to fund legal action having suffered negligence from a professional.

We also offer different funding arrangements to suit your individual needs. Conditional fee agreements or “No win, no fee” arrangements may be available, as may insurance backed funding or third-party funding.

We may be able to act for you on a “no win no fee” basis (known as a conditional fee agreement) if, having assessed the merits of your negligence claim, we believe you have a strong and valuable claim

You may also consider pursuing a claim using legal expenses insurance if you have this option under an insurance policy.

Professional negligence occurs when a professional has not provided a reasonable level of skill and care and they fail to perform to the standards required of them, which results in their client suffering damage or loss.

A professional has a duty of care to their client to perform their job to a reasonable standard and with reasonable care.

A claim may be brought against any professional, including:

• Solicitors
• Barristers
• Surveyors
• Builders
• Engineers
• Financial advisors
• Insurance brokers
• Architects
• Accountants
• IT professionals
• Professional trustees

A professional is a person who is considered to have particular expertise and skills in the services they provide.