Solicitors’ liability for client’s fraud
The claimant had purchased a property, but having discovered the sale to be fraudulent, he now claimed against the solicitors and estate agents acting in the sale.
Held: The claim failed. Neither the solicitor nor the estate agent could be said to have represented themselves to have any more than authority to act for another. This would be between him and any principal and was peculiarly within his knowledge. An agent acting simply as agent, did not thereby represent that his principal would perform the contract or was solvent or otherwise. A court must not imply any warranty of authority going beyond that first representation, unless he had made it clear that the necessary promise was implied. Professionals did not normally accept such an obligation. As to the defendant solicitors, there was no basis to imply a warranty of authority.
Robin Dicker QC
[2016] EWHC 2276 (Ch), [2016] WLR(D) 500, [2016] Bus LR 1337
Bailii, WLRD
England and Wales
Citing:
Cited – Purrunsing v A’Court and Co (A Firm) and Another ChD 14-Apr-2016
The claimant had paid money for a property, but the seller was a fraudster and no money or title was recovered. The claimant sued both his conveyancers and the solicitors who had acted for the fraudster, in each case innocently. The defendants each . .
Lists of cited by and citing cases may be incomplete.
Torts – Other, Legal Professions
Updated: 09 November 2021; Ref: scu.569921