The Court of Appeal is to hear a challenge by solicitors firm Simpson Curtis to a £2.1m damages award made against it in the High Court after it was found guilty of professional negligence in a 1989 property transaction.
The case centres on the sale of a bus depot in Hatfield, in respect of which Twenty Two A Property Investments Ltd held an option to purchase for £1.1m.
In 1989 an opportunity arose for the owners, Keith Young and Robert Breare, to sell the depot to Laing Investments (Bracknell) Ltd for £3.1m, on condition that the land was free of Twenty Two As option to purchase.
Twenty Two A consented in August 1989 to surrender its option for £1.65m. However, as a result of a failure by Young and Breares solicitor, Clifford Chance, to ensure that the sale agreement was completed by Laings deadline of 26 February 1990, Laing informed Young and Breare that the sale agreement was at an end.
Some months later, Laing bought the bus depot for a much lower price, and although Twenty Two A received a payment, it was £982,000 less than under the 1989 option surrender agreement.
It then sued Simpson Curtis over the collapse of the original sale, claiming that the firm had been under a duty to monitor what the other solicitors involved in the transaction were doing.
In June 1999 Park J allowed the claim, holding that Simpson Curtis had been under an obligation to keep an eye on Clifford Chance in case anything went wrong and to ensure that it met the February deadline.
On appeal, however, Anthony Temple QC argued on behalf of Simpson that it was entitled act as it did on the basis of Clifford Chances reputation as a highly skilled firm of solicitors.
Alan Steinfeld QC, counsel for Twenty Two A, argued that the judge had been correct to characterise Simpson Curtiss retainer in the way that he did. He said it had not been sufficient for Simpson Curtis to rely upon the reputation of the solicitor acting for the vendors in the transaction.
The hearing continues.
Twenty Two A Property Investments Ltd v Simpson Curtis (a firm) Court of Appeal (Kennedy, Potter and Jonathan Parker LJJ) 25 October 2000
Anthony Temple QC and Francis Tregear (instructed by Browne Jacobson, of Nottingham) appeared for the appellant; Alan Steinfeld QC and Stephen Moverley Smith (instructed by Herbert Smith) appeared for the respondent.
PLS News 26/10/00
