Advice was provided to victims of a property investment fraud in relation to a negligence claim against their legal advisors on the property transaction. Advice was provided to the clients in relation to recovery of losses from their former solicitors. It was alleged the former solicitors had failed in their duty of care by not advising the clients to withhold from completion on the said property transaction due to there being sufficient information available to allege fraudulent misrepresentation.
The former law firm had advised the clients that they had no choice but to complete on the transaction which ultimately led to a loss of in excess of £2m. Whilst some recoveries were made from the fraudsters causing the loss, a sum in excess of half a million pounds was recovered from the insurers for the law firm due to their failure to detect the fraud and the advice to the clients to conclude the property transaction.