Solicitors’ Failure To Advise on The Solvency Of a Borrower

The client, a lender, instructed its solicitor to act for it on the taking of an assignment of a loan. Unbeknownst to the client at the time, the borrower was insolvent, and the solicitor failed to investigate or advise on this crucial matter. As a result, the lender advanced sums over £1 million, and when the borrower defaulted, the lender had no means of recovery.

Our professional negligence team represented the lender in pursuing a professional negligence claim against the solicitors for failing to properly advise on the borrower’s solvency.

At close of pleadings, mediation was held and shortly after, the professional negligence claim was settled on favourable terms.

Experience the personalised expertise you deserve, contact Freeman Harris today to discuss your professional negligence claim.