The parties were negotiating for an under-lease. The lease provided for rent to increase along with rent reviews under the head lease. The solicitors failed to ascertain the rent under the head lease, to advise his client to have the property valued, or to explain the unusual clause. The rent was reviewd to an uneconomic rent, and the client sued his solicitor for negligence. He appealed dismissal of his claim.
Held: The solicitor was negligent. In exercising reasonable professional judgement he should have alerted his client to the consequences of the unusual clause. As to damages, the court was not restricted to the diminution in value. The plaintiff was entitled also to the costs of surrender and possibly to the cost of a lease whch would be saleable.
Citations:
[1987] 1 All ER 289
Jurisdiction:
England and Wales
Cited by:
Cited – Neighbour v Barker CA 1992
Purchasers had set out to buy the property without having a survey, relying upon representations as to its condition, later found to be fraudulent, from the vendor. The condition was discovered only after exchange of contracts. The purchasers’ . .
Lists of cited by and citing cases may be incomplete.
Professional Negligence, Damages
Updated: 11 June 2022; Ref: scu.219184