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Case study

The one where the
failure of solicitors to identify a route to claim loss caused by the fraud.

Advice was provided to individuals who had been the victims of fraud.  It was alleged they had suffered loss caused by former litigation solicitors who had failed to pursue an application for a freezing injunction.  The allegation was that the scope of duty of the solicitors included advising on the best options for recovery and construction of a claim.

The nature of the fraud alleged being a property transaction was not truly understood by the law firm advising as to the options for redress. As a result, the merits of pursuing a claim in misrepresentation together with an application for a freezing injunction were not considered.  As a result, the clients did not pursue that application and assert their claim against the fraudulent party until approximately two years later when advised by other solicitors.

That delay caused an increase in loss to the clients due to the nature of the fraud (they were locked into a transaction and could not mitigate their loss without recovery). A claim was brought against their former solicitors for professional negligence.  The claim was resolved leading to a six-figure settlement.

  • Case Study
  • Sector
    Real Estate
  • Service
    Professional Negligence

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