Indemnity insurance

A leading City law firm has failed to persuade the Court of Appeal to overturn a ruling that it was negligent in failing to highlight a major development planned to take place near a £26m residential property whose purchase it was handling.

The Court of Appeal has overturned a ruling that Raleys – the controversial but now defunct Barnsley law firm – should not have to compensate a miner who argued that its admitted negligence had caused him to settle a claim at an undervalue. Otherwise, it would be “far too easy for negligent solicitors to raise huge obstacles to claimants”.

The Supreme Court has upheld a ruling that a law firm which had been negligent in drawing up a loan facility agreement was not legally responsible for their client’s decision to actually make the loan. The decision has been branded as good news for solicitors, who “no longer appear to be expected to underwrite claimants’ risks and business ventures”.

The Supreme Court has sided with a leading professional indemnity insurer in interpreting the rules that govern the way insurers can aggregate multiple claims against solicitors. Overturning the Court of Appeal, it was ruling in claims by investors against a law firm arising from failed property developments in Turkey and Morocco.

TThe Court of Appeal has again allowed an appeal against a ruling giving a firm of solicitors summary judgment, this time in relation to a claim for non-payment of fees and a counter-claim of negligence against them.

The Court of Appeal has overturned a ruling that gave a national law firm summary judgment in a case alleging that its negligence had caused a company to lose a £4m intellectual property licensing deal with a global engineering giant.

Research by the Solicitors Regulation Authority to support its plans to reform indemnity insurance has “clear limitations”, ignoring the recent increase in claims related to cybercrime among other failures, the Law Society has claimed as it geared up for the next round of its battle with the regulator over the reforms.

A highly experienced solicitor who breached the Money Laundering Regulations 2007 in a property transaction that led to a £500,000 fraud did not act dishonestly, the High Court has ruled. As a result, it dismissed a subrogated claim brought by the insurers of London law firm Pemberton Greenish to make her cover what they had to pay out.

The Financial Services Compensation Scheme (FSCS) has had to increase its provision for general insurance claims by around £45m for the next financial year, because of the failures of Enterprise Insurance and Gable Insurance AG, it has emerged, while it is still paying out for other insurers that used to back solicitors.

A solicitor whose law firm partner has gone to jail for four years for mortgage fraud has lost her bid to have the £4.65m losses being sought from her covered by the firm’s professional indemnity insurer, even though she was not alleged to have had any personal involvement in the frauds.