Claimant awarded £400k for Divorce Negligence
Problem: In the case of Joanne Lewis v Cunningtons Solicitors [2023] EWHC 822 (KB), Ms Lewis issued a professional negligence claim against her divorce solicitors. She claimed Cunningtons Solicitors did not advise her properly during her divorce, specifically in respect of a pension sharing order held by her husband. Her ex-husband’s pension was worth over £540,000, but she accepted a settlement of just £62,000 in the divorce (without going through the process of full and frank disclosure). This acceptance, based on her solicitor’s advice, led to her missing out on about £500,000 which the claimant sought to recover from her former solicitors by way of a professional negligence claim.
Outcome: The court awarded Ms. Lewis £400,000 in her professional negligence claim against Cunningtons Solicitors. It was found that the firm breached its duty by inadequately advising on the pension sharing order. This led to Ms Lewis (a vulnerable and unsophisticated client) receiving a substantially lower settlement from her ex-husband’s pension, resulting in significant financial loss. The judgment emphasizes the crucial role solicitors play in ensuring clients are fully informed and advised, particularly in complex financial matters such as divorce settlements. The case serves as a useful reminder for the considerations when going through divorce proceedings.
Professional Negligence Against Family Lawyers
Professional negligence against solicitors occurs when a legal professional fails to provide the standard of care expected in their field, leading to client harm or financial loss. This includes errors, omissions, or lack of diligence in legal advice or representation.
In divorce cases, such negligence can have significant financial implications, as seen in Lewis v Cunningtons. Family law solicitors need to offer accurate, comprehensive advice, particularly in complex areas like financial settlements, to avoid such negligence claims and client complaints.
Common Examples of Professional Negligence Claims in Family & Divorce Proceedings
Professional negligence claims in family and divorce proceedings often involve:
- Inadequate advice on financial settlements (including pensions), leading to clients accepting less favourable or undervalued terms.
- Failure to properly handle and enforce court orders, such as pension sharing or property distribution.
- Neglect in filing crucial documents on time, resulting in legal disadvantages, or missed opportunities.
- Misrepresentation or underestimation of assets’ values, impacting the fairness of the settlement.
- Lack of clear communication about legal rights and options, particularly in custody or support matters.
- Excessive legal fee complaints where family lawyers have charged too much for the work they have carried out.
Joanne Lewis v Cunningtons Solicitors
Background
The central issue of professional negligence stemmed from Cunningtons Solicitors’ handling of Ms. Lewis’s divorce settlement. Crucially, the solicitors became aware of her ex-husband’s pension, valued at over £540,000, the most significant asset in the divorce. Despite this, they failed to advise Ms Lewis effectively about the potential claim value.
The firm also had Ms Lewis sign a disclaimer stating they could not advise on the fairness of the settlement without full financial disclosure, despite having enough information to suggest she could have obtained more in the divorce settlement.
This lack of adequate guidance and negligence from the solicitors led Ms. Lewis to accept a settlement of only £62,000, far less than she was entitled to, resulting in a significant financial loss.
Issues
The issues before the Court to determine whether the solicitors were negligent are as follows:
- Issue 1: Did Cunningtons Solicitors adequately inform Ms. Lewis about her ex-husband’s pension?
- Issue 2: Was the disclaimer signed by Ms. Lewis appropriate and sufficient? Did this absolve them of their duty to advise?
- Issue 3: Did Cunningtons Solicitors have enough information to advise Ms. Lewis against the under value of the settlement she was about to agree to?
Decision
On each of the issues, the Court determined in favour of the claimant:
- Inadequate Information on Ex-Husband’s Pension: The court found Cunningtons Solicitors were negligent in advising Ms. Lewis about her ex-husband’s pension. Despite knowing its substantial value (£540,712), they failed to guide her on the implications for her settlement.
- Effectiveness of the Disclaimer: Ms. Lewis signed a disclaimer, wherein Cunningtons claimed they could not advise on the settlement’s fairness without full disclosure. The court found this disclaimer inadequate, as the firm had sufficient information to advise Ms. Lewis. The judgment noted, “It was wrong to say that in the absence of full financial disclosure it could not advise her.”
- Advice on Settlement Acceptance: Cunningtons had enough information to guide Ms. Lewis against accepting the low settlement of £62,000. The court determined this failure as amounting to professional negligence.
Comments from Expert Professional Negligence Lawyers
This professional negligence claim highlights the critical role of family law solicitors in giving thorough and accurate advice. This case is a key reminder for solicitors to provide clear and comprehensive guidance, especially in complex financial matters like divorce settlements. It demonstrates the need for meticulous attention to detail in advising clients, to prevent professional negligence claims.
If you have experienced inadequate legal advice during divorce proceedings or suspect professional negligence from your solicitor, it is crucial to seek expert legal assistance. Our team of experienced professional negligence lawyers is here to help. Call us for a Free Consultation today on 0207 459 4037.
Case Example – Successful Professional Negligence Claim against Solicitors
Our no win no fee 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 professional negligence lawyers were instructed by the construction client and successfully settled the professional claim against the conveyancers during the pre-action phase as the insurer’s solicitors sensibly admitted liability early without court proceedings having to be issued by the 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.”
Winning approach to claims for Professional Negligence
Our no win no fee professional negligence lawyers have dealt with negligence claims ranging from £50,000 to claims of up to £15m. We pride ourselves on our client-centric and results-driven approach, tailoring our litigation strategies and funding solutions to meet the unique commercial needs of each client.
Our lawyers are recognised among the best lawyers in England & Wales, and have regularly been asked and featured to write authoritative articles in the Financial Times, Law Society and LexisNexis and have been quoted in City AM, the New Law Journal, Law Society Gazette and Litigation Futures.
Our specialist professional negligence team is Partner-led to provide straightforward, honest and strategic advice. We also have a strong legal network of solicitors, barristers and forensic accountant experts to call upon and advise you throughout to ensure you get the best result.
Our unique approach to professional negligence claims means that we will:
- Arrange a Free Consultation with you & a qualified lawyer to discuss your professional negligence claim
- Arrange a WhatsApp group with you & your legal team
- Investigate the merits of your claim for professional negligence & devise a strategy for success at the outset
- Work with our in-house accountants to report all losses
- Send documents easily through our secure client portal, Go Transfer
- Advise you on any judgments & tactics that have proved successful in other negligence cases
- Assess the amount you may be able to recover from the negligent professional
- 24/7 chat feature with a qualified lawyer
- Fixed fees and ‘no win no fee’ funding arrangements so that you have peace of mind
- Work hard to recover adequate compensation
Our lawyers offer regulated, independent & confidential legal advice and are dedicated members of the Professional Negligence Lawyers Association, the London Solicitors’ Litigation Association, the Association of Cost Lawyers, the Insolvency Lawyers Association and the Commercial Litigation Association.
Mediation in Negligence Claims
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 in professional negligence claims.
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.
Free Consultation with Expert Professional Negligence Solicitors
Whether you are an individual or a business, our professional negligence lawyers provide exceptional legal services to get you the compensation you deserve quickly and cost-effectively: this is our promise.
If you want to find out more about our no win no fee, and flexible funding options, you can find out more on our Funding page.
To book a Free Consultation with our expert no win no fee professional negligence solicitors, you can call us on 0207 459 4037 or you can use our booking form below.
