The importance for professional people – whether they be solicitors, surveyors, accountants, auditors or architects – in clearly defining in writing the extent of the duties they owe to their client and what they are responsible for undertaking has been restated in a number of leading cases over the part few years.
The legal relationship between professional people and their clients hinges on the contractual agreement between them and the duty owed to use reasonable skill and care when undertaking work.
The need for clarity was made clear in a leading case in the High Court, Football League –v- Edge Ellison. Edge Ellison was accused of negligence in advising on a commercial transaction between the Football League and OnDigital to broadcast football matches. OnDigital later went into liquidation with over 2 years left of the agreement and the major part of the licence fee of £315m still unpaid.
The Court clearly stated that in cases where there are allegations of breach of contract or negligence the Court will first look at the solicitor’s retainer (or contract) to determine the extent of the duties and responsibilities on the part of the solicitor. Such an exercise will be clearly based on any written documents such as letters and any verbal discussions.
The Football League were on the whole unsuccessful in their claim as the Court decided that the agreement the Football League and Edge Ellison was clearly set out and did not extend to advice on the solvency of OnDigital.
Two other recent cases – one the High Court (Marplace –v- Chaffe Street) and one in the Court of Appeal (Stone Heritage Developments Limited –v- Davis Blank Furniss – have made it clear that the Court will also consider the instructions given by the client, the circumstances of the formation of the agreement between the professional and the client, and the sophistication, knowledge and experience of the client.
If any lesson is to be learnt from reading this article, it is to make sure that the extent of the agreement between the professional and the client is crystal clear.
Do you believe that your professional has done a poor job? Have you suffered any loss as a result of work undertaken by a professional? If so, you may have a claim, regardless of whether they are a solicitor, accountant, auditor, surveyor or architect.
If you have any queries about this article or you have any concerns relating to negligence by professional people (or claims against professional people), please contact
Stuart Cutting.
This article was first published in the Spring 2008 edition of NewsBrief.
