Professional Negligence

Professional negligence claims arise when advisors such as solicitors, surveyors, insurance brokers, accountants, or independent financial advisers (IFAs) fail to meet the standards expected of their profession. The consequences tend to result in financial loss, wasted time, and reputational damage. Understanding the scope and nature of professional negligence is key to holding professionals accountable and recovering losses.

Businesses and individuals rely on professional advisors to help them navigate complex areas of risk and safeguard their interests. However, quite often negligence stems from simple administrative mistakes, technical errors, or even wilful disregard for a client’s best interests. For example, a solicitor missing a critical court deadline or a surveyor failing to identify structural defects.

Claims against surveyors and valuers tend to involve property issues such as under valuations, inadequate inspections, or failing to identify potential defects. In more serious cases these errors can leave buyers with uninhabitable properties, leading to substantial losses.

Insurance brokers play a crucial role in ensuring clients have appropriate and comprehensive cover. Claims against brokers frequently involve:

  • failing to arrange adequate cover for relevant risks;
  • providing incorrect advice on completing insurance forms; and
  • delays in arranging cover that result in uninsured losses.

Solicitors are held to high standards of care, given the implications of their advice. Negligence claims often arise in areas such as:

  • conveyancing errors, like failing to identify restrictive covenants or rights of access;
  • missing court deadlines in personal injury or litigation cases;
  • poorly drafted wills that do not reflect a testator’s wishes or fail to comply with legal formalities; and
  • under-settling financial settlements in divorce cases or neglecting key assets like pensions.

Accountants and tax advisers are usually instructed to provide accurate and insightful financial advice. However, negligence can arise from:

  • providing inadequate advice on tax reliefs or exemptions;
  • undervaluing businesses for share disposal or disputes; and
  • offering substandard business advice or overcharging fees.

Independent Financial Advisers (IFAs) are expected to assess a client’s financial circumstances comprehensively and provide tailored advice. Common examples of negligence include:

  • recommending investments unsuitable for the client’s risk profile;
  • making decisions without the client’s knowledge or mandate; and
  • failing to review and adjust strategies over time.

With most claims, expert evidence is necessary. Causation is also key; in other words claimants must prove that the professional’s breach directly resulted in their losses. In some cases, courts may apply the “loss of chance” principle, addressing opportunities lost due to negligence.

Remedies for professional negligence typically involve damages, aiming to restore the claimant to the position they would have been in if the breach had not occurred. This can include compensation for direct financial losses, consequential losses, and reputational harm.



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