Law Firm, Cunningtons LLP Ordered to Pay Former Client £400,000 for Professional Negligence after giving bad Divorce Advice.
Paul Britton
Solicitor Advocate | TV Personality | Expert Commentary | Managing Director
A recent ruling by His Honour Judge Coe KC of the High Court has ordered a law firm to pay £400,000 to a former divorce client, Joanne Lewis, for failing to provide adequate advice on her entitlement to her husband's pension. The judge found in favour of the claimant, stating that the law firm, Cunningtons Solicitors, were professionally negligent and should have clearly advised Lewis to apply for a share of her husband's pension, which was potentially worth £1 million.
Instead, the law firm advised Lewis to accept a settlement of £62,000 on a clean-break basis, without providing any comments on the fairness or reasonableness of the agreement due to the lack of financial disclosure at that stage. The law firm asked Lewis to sign a disclaimer acknowledging her understanding of this, but she later filed a professional negligence claim, alleging a breach of duty.
Judge Coe highlighted that the crux of this professional negligence case was a dispute over the scope of the law firm's retainer. Lewis argued that the law firm was wrong in stating that they could not advise her without full financial disclosure, while the law firm claimed that they had fulfilled their duty and that Lewis had chosen to negotiate a direct settlement with her ex-husband.
Judge Coe noted that Lewis was an unsophisticated user of legal services with no knowledge of financial affairs and had been bullied and intimidated by her ex-husband. The law firm was aware that Lewis had complained of being bullied and feeling pressurised. Furthermore, Judge Coe stated that Lewis had been in a desperate situation after the end of her 23-year marriage in 2012, and her husband's police pension was the largest asset that should have been carefully considered by the law firm.
Judge Coe further emphasised?that any competent solicitor would have advised Lewis that the proposed settlement was heavily skewed in favour of her husband, providing her with less than 15% of the disclosed matrimonial assets and leaving her with inadequate financial provision for the future, especially in retirement. The judge ruled that the law firm's failure to offer proper advice and requiring Lewis to sign a disclaimer was a clear breach of duty, as the law firm had enough information to provide advice, even if in general terms.
The judge pointed out that the law firm's mention of a pension sharing order as one of the possible court orders was not enough. The law firm also failed to inform Lewis about the reasonableness of her husband's offers in light of his pension information. Lewis needed clear advice on what she could reasonably hope to achieve in her divorce settlement.
This ruling highlights the importance of law firms providing thorough and appropriate advice to their clients, especially in complex matters such as divorce where financial entitlements are at stake. It also underscores the significance of clear communication and transparency in solicitor-client relationships to avoid a professional negligence claim.
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Here are my 5 tips to consider when looking for a family solicitor:
Expertise in Family Law: Look for a solicitor who specialises?in family law and has extensive experience in handling divorce, child custody, property division, and other family-related legal matters. A specialist family solicitor will have a deep understanding of the complexities of family law and will be able to provide tailored advice and representation.
Reputation and Reviews: Research the reputation of the solicitor and their law firm. Look for reviews and testimonials from previous clients to get an idea of their track record and client satisfaction. You can also ask for referrals from friends, family, or other trusted sources who have gone through similar legal issues.
Communication and Accessibility: Communication is key in any legal matter. Choose a solicitor who is responsive, communicates clearly, and keeps you updated on the progress of your case. Accessibility is also important, as you should feel comfortable reaching out to your solicitor with any questions or concerns.
Transparency on Fees and Costs: Make sure to discuss and understand the fee structure and costs associated with your case upfront. A reputable solicitor should be transparent about their fees, including hourly rates, retainer fees, and any additional expenses, so that you are aware of the financial implications from the outset.
Personal Connection and Trust: It's crucial to feel comfortable and have trust in your family solicitor, as you will be sharing personal and sensitive information with them. Look for a solicitor who listens to your concerns, shows empathy, and understands your unique situation. A good solicitor will work in your best interests and provide you with realistic expectations about the outcome of your case.
Remember, finding the right family solicitor is an important decision that can greatly impact the outcome of your case. Take your time to research, ask questions, and choose a solicitor who has the expertise, reputation, and personal qualities that make you feel confident and comfortable throughout the legal process.
Senior Partner at Cunningtons LLP
1 年The judgment is a real mischaracterisation of what actually happened in this case. It opens up the possibility of judges imputing obligations on lawyers retrospectively notwithstanding correct advice provided at the time. It’s the sort of judgment that might send chills down lawyers spines.
Director and Solicitor at Britton and Time Solicitors, Event Host at Property Professionals Lunch
1 年This really highlights the importance of properly advising your clients so they can make an informed decision!