Has your solicitor settled your claim for an Undervalue
It is a common complaint against solicitors and barristers in professional negligence claims that they have failed to recover sufficient compensation and/or settled your claim at an undervalue. This can often occur where your legal advisor settles a claim at an undervalue without your instructions and/or without giving you the necessary legal advice.
Solicitors and barristers are regulated by the Solicitors Regulation Authority and the Bar Standards Board respectively. If a lawyer’s error, mistake, or bad service, particularly during settlement negotiations, falls below the standard expected of a reasonable lawyer within their speciality, then you may have a cause of action against that legal professional for the losses you have suffered.
Leading Authority on Undervalue Negligence Claims
In Hickman v Lapthorn & Fisher [2005] EWHC 2714 (QB), the claimant client started negligence proceedings against his legal advisors alleging that:
- his personal injury claim had been settled at an undervalue; and
- his legal representatives had failed to give him the necessary advice to make an informed decision as to the settlement negotiations.
The Facts
The claimant client had sustained head injuries after being involved in a car accident in which the driver at fault had not been insured.
The defendant lawyers obtained medical reports indicating that the claimant client’s capacity for paid employment was minimal in view of his physical, cognitive and behavioural difficulties suffered as a consequence of the accident. Following advice from his legal representatives, the claimant decided to accept an offer of £70,000 damages.
The claimant client sought to regain employment however he was unable to work due to fatigue and an inability to concentrate.
The claimant client therefore brought a claim against the defendant lawyers on the basis that they had advised him to “under settle” his personal injury claim and had failed to take into the account the possibility that he would be unable to work in future.
The Decision
The Court found that the defendant lawyers had breached their duty of care to the claimant client by failing to properly examine the possibility that the claimant could claim for loss of earnings and care on a lifetime basis. The claimant client was therefore awarded £130,000 inclusive of interest.
Common Examples of Undervalue Professional Negligence
Many claims are often settled at an undervalue before proceedings are issued and sometimes before a proper investigation is undertaken of the value of any potential claim (and without thinking forward to issues that might arise in the future).
Claimant clients must be provided with clear advice and information reasonably possible for them to make an informed decision as to the prospects of success and settlement discussions. The key questions for claimant clients to consider carefully is: have my legal representatives advised in respect of all potential claimable loss? If so, how has that loss been factored into any settlement.
The common examples of negligence in relation to undervalue or under settlement of claims can include:
- Failing to properly value your case correctly to include all possible losses
- You were rushed into a quick settlement by the legal adviser
- Failing to take the risk of future complications and losses into consideration (i.e. perhaps because of future needs such as ongoing care or unemployment)
- Failing to seek and obtain adequate evidence to support losses
- Failing to take instructions about your losses
- Failing to take your instructions on settlement and settling the claim without your instructions
- Failing to provide you with advice and information in respect of the settlement
- Failing to accept or advise in respect of an offer made by your opponent
- Failing to take account of Interest which should be claimed
- Allowing the limitation period to expire in respect of certain aspects of your claim, thereby reducing the value of your claim
- You did not have mental capacity to make your own informed decision about settlement and should have been represented by a ‘litigation friend’
If you feel you have been advised to settle your claim at undervalue or you have not been given the information to make an informed decision to settle, our award-winning professional negligence team can provide you with specialist legal advice on claims against all legal professionals including solicitors, barristers, licenced conveyancers and other legal professionals (such as Paralegals, Caseworkers, Legal Executives and Legal Assistants).
Others Cases on Negligence Claims for Undervalue
Perry v Raleys Solicitors [2019] UKSC 5 (negligence for undervalue settlement of claim)
This case emerged following the announcement of a compensation scheme established by the Department for Trade and Industry to compensate miners, like Mr. Perry, who developed vibration white finger (VWF).
Mr. Perry was represented by Raleys Solicitors for his compensation claim under the scheme. Raleys obtained a medical report confirming Mr. Perry’s eligibility for a service award due to his VWF condition. However, the settlement offer from the DTI, which Mr. Perry accepted, did not include compensation for the inability to carry out certain service tasks such as DIY.
Mr. Perry later claimed that Raleys had negligently failed to advise him about his potential services claim. He argued that this failure led to the settlement of his compensation claim at an undervalue.
The defendant solicitors admitted their negligence in failing to advise Mr Perry but contended that even with proper advice, Mr. Perry would not have pursued the service award claim, or if pursued, it would have been unsuccessful.
The Court of Appeal agreed with the claimant. The Court of Appeal awarded Mr. Perry £14,556.15 plus interest, recognising the loss he suffered due to the negligent advice. The case highlights the duty of care solicitors owe to their clients, especially in advising on potential claims. It also underscores the importance of comprehensive consideration of all evidence, including expert opinions, in judicial decision-making.
A similar case was Edwards v Hugh James Ford Simey Solicitors [2019] UKSC 54 where the Supreme Court found that the claimant likely had a substantial prospect of success in his services claim under the DTI Scheme.
Case Example – Successful Negligence claim
Our professional negligence lawyers acted for a construction company that purchased the freehold of a property located in London. However, the conveyancing solicitors acting in the property purchase failed to properly alert our client and advise that there were restrictive covenants which significantly affected the freehold reversion value of the property.
Our lawyers were instructed by the construction client and successfully settled the claim during the pre-action phase as the insurer’s solicitors sensibly admitted liability early without court proceedings having to be issued by our client.
The claimant client left the following feedback for our lawyers:
“Very satisfied with the way that Karim and his team took hold of a messy conveyancing professional negligence claim, and progressed it through to an amicable settlement in just over 6 months. Professional, courteous, knowledgeable, and also pragmatic with advice and strategy. I would not hesitate to recommend.”
Mediation in Negligence Claims against Solicitors & Barristers
Alternative dispute resolution, where suitable, provides many advantages for parties in legal disputes. Our lawyers are strong advocates for mediation, which can often lead to favourable settlements.
Several of our lawyers are trained mediators and expert negotiators who are registered members of the Chartered Institute of Arbitrators (CIArb) and the International Mediation Institute. Our expertise in mediation gives our lawyers a significant and unique advantage when navigating settlement discussions on your behalf.
Expert Professional Negligence Claim Lawyers in London
We provide flexible funding options including fixed fees and ‘no win no fee’ arrangements to pursue your professional negligence claim. For more information, please visit our funding page or call us for a Free Consultation with our lawyers.
If you believe you have suffered due to solicitor negligence, it is crucial to seek expert legal advice promptly. At Go Legal, our team of experienced negligence lawyers in London specialise in navigating complex claims. We provide clear guidance and robust representation to ensure you receive the justice and compensation you deserve.
Please call us on 0207 459 4037 or complete our online booking form for a Free Consultation today to discuss your negligence claim.
