Professional Negligence Case Study 2

Bell Lax acted for the former directors of a company on a six-figure professional negligence claim against their former solicitors.

Bell Lax’s clients argued that those solicitors had failed to advise our clients that their proposal of incorporating a new company in a similar field to the one in which their current company operated could lead to a potential claim against them by the minority shareholders for breaches of fiduciary duty.

One of the minority shareholders did bring such a claim, and our clients had to pay a considerable sum of money to settle that claim. Following the settlement, our clients sought compensation for their losses from the firm of solicitors that failed to advise them of that risk.

There were a number of complex issues surrounding this claim including duty of care, scope of retainer, and disclosure obligations.

The claim settled at mediation shortly before a listed 10 day trial in the High Court.