Our client, a property developer was in the process of obtaining a property. The case involved two law firms that acted for the buyer & seller. After the transaction was complete, the client discovered that the seller had committed identity fraud and lost a considerable amount of money. Issues included breach of warranty of authority and breach of trust on the part of the solicitors who acted on behalf of the fraudster; the scope of the duty of care of the firm acting on behalf of our clients and whether the clients’ consequential loss of profit was recoverable at law.
The outcome of the case
Solicitors’ legal obligations in such circumstances are unclear and this matter may lead to clarification of the law in this regard. The team, led by Jerome O’Sullivan was able to successfully make a claim against the two firms for £1.5million.