Land was purchased and a resale negotiated before it was registered. An undertaking was accepted that the seller’s solicitor would discharge all charges. The purchasers sought to avoid completion by saying the Act required them to be registered before completion. The matter was completed but the seller’s bank refused to sign the release. The bank gave one figure to release the charge, but then demanded more. The buyers’ solicitors were alleged to have been negligent, having completed on the basis of the vendor solicitor’s undertaking to discharge the mortgage. This was standard practice in conveyancing transactions.
Held: In accepting the vendor’s solicitors undertaking, the client was exposed to some degree of risk. Nevertheless, it was enough to show that the routine and approved practice of English solicitors is one on which ‘the experts have directed their minds to the question of comparative risks and benefits and have reached a defensible conclusion on the matter’ The solicitors were not negligent.
Judges:
Mr Justice Carnwath, Lord Justice Robert Walker, Lord Justice Longmore
Citations:
[2001] EWCA Civ 1229, [2002] PNLR 6
Links:
Statutes:
Land Registration Act 1925 110(5), Law Society’s Code for Completion by Post 1984
Jurisdiction:
England and Wales
Citing:
Cited – Edward Wong Finance Co Ltd v Johnson Stokes and Master PC 1984
(Hong Kong) The defendant’s solicitors completed a mortgage in ‘Hong Kong style’ rather than in the old fashioned English style. Completion in Hong Kong style provides for money to be paid over against an undertaking by the solicitors for the . .
Cited – Bolitho v City and Hackney Health Authority HL 24-Jul-1997
The plaintiff suffered catastrophic brain damage as a result of cardiac arrest induced by respiratory failure as a child whilst at the defendant hospital. A doctor was summoned but failed to attend, and the child suffered cardiac arrest and brain . .
Cited – National Home Loans Corporation v Kaufmann 21-Jun-1995
. .
Cited by:
Cited – Lloyds TSB Bank Plc v Markandan and Uddin (A Firm) ChD 14-Oct-2010
The claimant sought damages saying that the defendant firm of solicitors had failed to deal properly with a conveyance having paid across the mortgage funds to a non-existent firm of solicitors and without obtaining the appropriate documents at all. . .
Lists of cited by and citing cases may be incomplete.
Professional Negligence, Legal Professions, Damages
Updated: 01 June 2022; Ref: scu.159904