Frank Houlgate Investment Company Ltd v Biggart Baillie Llp: SCS 25 Sep 2014

Extra Division – Inner House – The pursuer alleged that solicitors had failed to identify that a fraudster borrowing money from him was not the same as the owne of the land to be taken in charge by security. In particular the court was asked: ‘ whether the defenders are liable to make reparation to the pursuers because Mr Mair knew that JMC had deceived the pursuers and granted a security in their favour over property in which he had no interest, yet continued to act on behalf of JMC, took no steps to inform the pursuers or their agents of JMC’s admitted fraud, and did nothing to prevent JMC obtaining further funds from the pursuers.’

Lord Menzies
[2014] ScotCS CSIH – 79
Bailii

Scotland, Professional Negligence, Torts – Other

Updated: 21 December 2021; Ref: scu.537043