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Brown v KMR Services Ltd: CA 26 Jul 1995

Allied Maples had made a corporate takeover of assets and businesses within the Gillow group of companies, during which it was negligently advised by the defendant solicitors in relation to seeking protection against contingent liabilities of subsidiaries within the vendor’s group. Allied Maples would have been better off, competently advised, if, but only if: (a) it had raised the matter with Gillow and sought improved warranties and (b) Gillow had responded by providing them.
Held: Allied Maples had to prove point (a) on a balance of probabilities, but point (b) should be assessed upon the basis of loss of the chance that Gillow would have responded favourably.
The scale of losses alone did not make damages claim too remote if it was nevertheless foreseeable. Liability for damages for negligent advice depends upon type not scale of loss.
Claims against underwriters are separate for each year, set-off not allowed.

Judges:

Stuart-Smith, Hobhouse and Millett LJJ

Citations:

Times 26-Jul-1995, Gazette 15-Sep-1995, Independent 13-Sep-1995, [1995] 2 Lloyd’s Rep 513, [1995] 4 All ER 598

Jurisdiction:

England and Wales

Citing:

Appeal fromBrown v KMR Services Ltd; Sword-Daniels v Pitel and Others QBD 19-Apr-1994
A Lloyds agent who was asked to find a low risk syndicate has a duty to do so. . .

Cited by:

CitedTransfield Shipping Inc of Panama v Mercator Shipping Inc of Monrovia ComC 1-Dec-2006
The owners made substantial losses after the charterers breached the contract by failing to redliver the ship on time as agreed.
Held: On the facts found the Owners’ primary claim is not too remote. To the knowledge of the Charterers, it was . .
CitedPerry v Raleys Solicitors SC 13-Feb-2019
Veracity of a witness is for the court hearing him
The claimant, a retired miner, had sued his former solicitors, alleging professional negligence in the settlement of his claim for Vibration White Finger damages under the government approved scheme for compensation for such injuries. At trial, the . .
Lists of cited by and citing cases may be incomplete.

Insurance, Damages

Updated: 21 January 2023; Ref: scu.78703

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