Professional Indemnity newsletter - Winter 2009

Limitation: Amending Particulars of Claim or substituting a new party after expiry of the limitation period

The limitation periods provide a consistent stream of reported cases. One area within these cases which can be especially complicated is where a claim that has been issued within the relevant limitation period is changed after expiry of the limitation period. The rules are found in the Limitation Act 1980 Section 35. The issue usually arises during the course of applications to amend Particulars of Claim, under CPR 17.4 and to add or substitute a party under CPR 19.5.

Undertakings: The consequences of breach

The use of undertakings in the course of a solicitor’s practice are necessary and effective in allowing the conduct of clients' business. However, claims against solicitors arising from a breach of undertaking are perhaps an inevitable consequence of such use. An undertaking is a promise by a solicitor in respect of which they are personally bound. To be an undertaking, such a promise must be given during the course of the solicitor's private legal practice and in their capacity as a solicitor. Although it does not have to be stated explicitly as an undertaking to be an enforceable undertaking.

Reflective loss: The line is held in Webster v Sanderson [2009] EWCA Civ 830

The rule against recovery by shareholders of losses classed as reflective of those of the company in which the shares are held was applied. This was to deny the Claimant in Webster the opportunity to amend his claim increasing his losses from the original £1.9 million to over £30 million.

Quinn Direct Insurance Ltd v The Law Society of England and Wales 2009 EWHC2588

Quinn were the professional indemnity insurers to a two partner firm, South Bank Solicitors. Quinn found themselves in a situation that will be only too familiar to Qualifying Insurers of solicitors. They discovered that South Bank were the subject of numerous claims arising out of allegedly fraudulent conveyancing transactions and that there were likely to be more similar claims on the way.

False evidence and exaggerated claims

Recent cases provide some new guidance on the options available to litigants.