Professional Indemnity newsletter - Spring 2012
The High Court held in the above recent case that solicitors do not owe a duty to longstanding clients to keep and review the suitability of advice and drafting of certain documents that it had previously provided. The Judgment will be welcomed by Insurers and solicitor professionals alike.
This is an eternal topic of interest across the range of claims made insurance policies.
In the last few months we have seen the Courts deliberate on the difficult issue of breach of trust in a number of professional negligence cases. The relief from sanction available under s.61 Trustee Act 1925 has not been allowed to assist the defendant solicitors in these reported decisions. The cases have considered the trusts on which loan advances are held and looked closely at the definition of “completion”.
In January this year many of us were holding our breath for the Court of Appeal decision in the case of Motto v Trafigura, which we hoped would finally provide us with some clarity as to the date from which interest runs in costs cases. However, due to the parties reaching a compromise in the case, the appeal was not heard.