The firm of solicitors acted for both parties in a conveyancing transaction, in a situation when they were permitted to do so. The firm had previously acted for one party in a case where he had been convicted of a crime. The other party said the solicitors had a duty to them to disclose this fact about the other party.
Held: The solicitors were not under a duty to disclose to their client something which had come to their knowledge in an unrelated earlier transaction. The duty of disclosure depended upon the extent of the retainer. He had a duty to keep confidential information derived from an earlier transaction. If a solicitor acted for two parties, he may become obliged to disclose to the other information obtained in the course of that retainer, and could not excuse his duty to one by reference to the duty to the other.
Judges:
Lord Justice Jonathan Parker, Walker LJ
Citations:
Times 06-Jun-2002, Gazette 06-Jun-2002, [2002] EWCA Civ 723, [2002] Lloyds Rep PN 500
Links:
Jurisdiction:
England and Wales
Citing:
Cited – Mortgage Express Ltd v Bowerman and Partners (A Firm) CA 1-Aug-1995
A solicitor acting for both a lender and a borrower was under a duty to disclose relevant information to the lender client. An incident of their duty to exercise reasonable care and skill, solicitors are obliged to advise their lender client in . .
Cited – Bristol and West Building Society v Baden Barnes and Groves CA 2000
cw Proposed amendments to a plaintiff’s pleadings failed to prevent a striking out. The amendments either sought to advance by a different route the earlier claim which was bound to fail, or sought to introduce a . .
Distinguished – Moody v Cox and Hatt CA 1917
An action was brought for rescission of a contract of sale of a public house and four cottages, with a counterclaim for specific performance. The sellers, Hatt and Cox, were respectively a solicitor and his managing clerk. They were the trustees of . .
Cited by:
Appeal from – Hilton v Barker Booth and Eastwood HL 3-Feb-2005
The claimant had instructed the defendant solicitors to act for him, where he was to contract with another client of the same solicitor in a land development. The solicitor failed to disclose that the other client had convictions for dishonesty, and . .
Cited – Burkle Holdings Ltd v Laing TCC 23-Mar-2005
The parties had each instructed the same solicitor, but now disputed the entitlement of the other to see documents held by the solicitor. . .
Cited – Hosking v Marathon Asset Management Llp ChD 5-Oct-2016
Loss of agent’s share for breach within LLP
The court was asked whether the principle that a fiduciary (in particular, an agent) who acts in breach of his fiduciary duties can lose his right to remuneration, is capable of applying to profit share of a partner in a partnership or a member of a . .
Lists of cited by and citing cases may be incomplete.
Legal Professions, Professional Negligence, Contract
Updated: 06 June 2022; Ref: scu.171276