Quantification of losses in professional negligence cases
Advising claimants or professional firms accused of negligence
The firm has advised on the level of compensation arising from professional negligence and has responded to many such claims for professional services firms and their insurers. Apart from the following two reported case, most of our cases have settled by negotiation or mediation, thereby saving professional costs and allowing the parties to concentrate on their other business interests.
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The team has also advised on the quality of work carried out by firms of chartered accountants in order to establish whether the work fell short of the standards expected and whether losses flowed from any deficiencies.
Read a sample of our reported cases here.
One of the firm’s expert witnesses has given oral evidence in the following two reported 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.
Berry v Laytons & Anor [2009] ECC 34, [2009] EWHC 1591 (QB)
The case addressed the compensation that should have been paid to a commercial agent on the termination of their agency in accordance with The Commercial Agencies (Council Directive) Regulations 1993. Both experts gave evidence concerning the level of earnings at the valuation date and the appropriate multiplier for the quantification of compensation.
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