The solicitor innocently accepted instructions to sell a property, but was misled as to the identity of the wife – one of the joint owners. Unknown to him, however, Mr Penn had forged his wife’s signature on the contract documents. He was sued by the lender to the buyer (who had also been involved in the fraud).
Held: The Solicitor acting for vendor was to be held liable as having given a warranty that he was instructed by the true owners.
Waller LJ having said that the solicitor thought he was acting for the wife as well as the husband and, in all the pre-contract correspondence, negotiations and completion, held himself out as duly authorised by the husband and wife jointly, held that the building society had to establish that a promise had been made to it by the agent, to the effect that the agent had the authority of the principal, and that it had provided consideration by acting in reliance on that promise. He concluded that all the necessary ingredients were present for establishing a warranty by the solicitor in favour of the building society that the solicitor had the authority of Mrs Penn.
Judges:
Staughton, Waite, Waller LJJ
Citations:
Times 24-Apr-1997, [1997] 3 All ER 470, [1997] EWCA Civ 1416, [1997] 1 WLR 1356, [1997] PNLR 607
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Penn v Bristol and West Building Society and Others ChD 19-Jun-1995
Solicitors acting for a vendor were liable to the buyers’ mortgagees for breach of warranty of authority for vendor. The solicitor was negligent in not having verified the instructions from the wife who was the joint tenant. . .
Cited by:
Appealed to – Penn v Bristol and West Building Society and Others ChD 19-Jun-1995
Solicitors acting for a vendor were liable to the buyers’ mortgagees for breach of warranty of authority for vendor. The solicitor was negligent in not having verified the instructions from the wife who was the joint tenant. . .
Cited – A and J Fabrications (Batley) Ltd v Grant Thornton and Others ChD 1998
The plaintiffs, the majority creditors of a company in liquidation, alleged that they had agreed with Grant Thornton, the defendants, to support the appointment of one of the firm’s partners or employees as liquidator of the company, with a view to . .
Lists of cited by and citing cases may be incomplete.
Legal Professions, Professional Negligence
Updated: 19 May 2022; Ref: scu.84653