The one with the
solicitor with a vested interest

Advice has been provided to a company in the security sector as to allegations that its’ former law firm advising on 50% share disposal failed to act correctly in advising on that process.

The central allegation was the conflict of interest of the lead solicitor advising the client company.  The advisor of this international law firm held a minority shareholding in the client company and therefore appeared focused upon seeking sale of the company regardless of risks and structure of the sale, therefore not protecting the client’s interest in the sale process. 

As a result of the alleged conflict of interest, the client formed the view that they were not provided with the level of care required in relation to this transaction.  The client was locked into the transaction with all focus on completion without advice on the risks on non-payment by the purchasers.

Payment was not made by the purchasers. By the time the client’s business was extracted from the transaction some 12 months after it ought to have completed on the sale, the company could no longer trade due to the nature of the market it was in arising out of the lack of activity.  

We were instructed to provide advice on a professional negligence claim against the former lawyers for the loss of chance to operate and sell the company, its’ future profitability and income.  The claim is stated to be for an eight-figure amount.