Professional negligence – case studies

The team have advised on and quantified compensation arising from professional negligence by members of a wide variety of professions.

Almost all our cases have settled by negotiation or at mediation thereby saving time and professional costs. The following two Case Studies illustrate the challenges, but also our expertise in preparing expert reports and presenting oral evidence in these difficult cases.

Magical Marking Ltd & Anor v Ware & Kay LLP & Anor [2013] EWHC 636 (Ch)

The Claimants alleged that the solicitors had failed to advise correctly that it would be unfairly prejudicial to remove a director without making a fair offer for his shares. Various disputes and litigation resulted, leading to a claim against the company’s solicitors for £10 million. Vero’s team were appointed by the Defendants to carry out a thorough review of the claim and company records. The result of these investigations was that the vast majority of the claimed amount could be disputed. Following a lengthy and expensive trial the court awarded a nominal £28,000. The Court accepted that Vero’s team were justified in carrying out the in-depth investigation of the claimed amounts.

Client

Ware & Kay LLP, the Claimants’ solicitors.

Claimant

Magical Marking Ltd & its owner Mrs Phillis.

Context

Charles Lazarevic was appointed by solicitors acting for Ware & Kay LLP to consider the quantum of the £10 million claim.

Outcome

The team analysed the various allegations and the Claimant company’s trading history in detail and concluded that the losses were no more than £28,000, and the Court agreed. In the course of a three week trial, each party’s expert accountants gave evidence for a day.

Matters settled

Many matters were settled between the experts before the trial following exchange of expert reports, at meetings and in joint statements.

Challenges

In the course of a three week trial, each party’s expert accountants gave evidence for a day

While the Claimants complained that Vero’s approach towards the alleged damages had been unrealistically detailed and forensic, our experience suggested it was highly inflated and that a detailed examination would provide this, which was the case. The Court agreed with our approach and only made a modest reduction to the client’s costs of defending the action.

The second case concerns a dispute over the professional advice provided by Laytons Solicitors in connection with compensation due to an commercial agent in accordance with The Commercial Agencies (Council Directive) Regulations 1993.

Berry v Laytons & Anor [2009] ECC 34, [2009] EWHC 1591 (QB)

Both experts gave evidence concerning the level of earnings at the valuation date and the appropriate multiplier for the quantification of compensation.