Summary of Recent Cases – Substantive Law


Solicitors’ Conduct Of Property Transactions Not Negligent

Michael Cherney & Ors v. (1) Frank Neuman & Ors (2) Frank Neuman, ChD, 5/8/11

Henderson J held that the defendant solicitors’ firm were not liable to their clients for damages for professional negligence, breach of fiduciary duty or breach of trust. The defendant had been instructed by the clamant to act on their behalf in respect of various property transactions. Henderson J held that the general scope of the retainer was to act and provide advice as to the conveyancing and corporate aspects of the potential purchase of the properties which the clients wished to acquire. Henderson J further held that the scope of the retainer did not extend to the provision of advice as to the commercial merits of the transactions or the price to be paid. Had such advice been required, the Defendant would have instructed specialist valuers on their clients’ behalf. The defendant’s knowledge of side payments to the claimants’ agents did not constitute a breach of duty as the claimants had full knowledge of such payments and implicitly approved them.

September 23, 2011 В· Editorial Team В· Comments Closed
Posted in: Cases