Conveyancing firm not liable for client’s £300,000 losses following failed transaction, court rules
Summary
The High Court dismissed a claim against a conveyancing firm for nearly £300,000 in losses arising from a failed off-plan residential development purchase. The judge found only a limited breach in the solicitor’s advice about deposit protection, but held there was no sufficient legal link between that breach and the claimant’s loss, so no damages were recoverable.
Why it matters
The case highlights the limits of conveyancers’ duties in advising on investment risk, particularly in off-plan and partly buyer-funded developments. It is relevant to surveyors because such schemes often involve marketing claims, security arrangements and risk disclosures that can affect buyer expectations and transaction viability.
Key points
- Claim dismissed despite a finding of limited breach of duty by the solicitor
- Court held the solicitor did not need to advise the client not to proceed with the investment
- Judge found the claimant failed to prove the necessary legal connection between the advice failure and the loss
- The development failed after its finance company entered administration
- Case concerns deposit protection and risk disclosure in an off-plan residential scheme
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