Abdullah Nasser Bin Obaid & Ors v RLS Solicitors Limited t/a RLS Law
[2023] EWHC 3136 (Ch)
Abdullah Nasser Bin Obaid & Ors v RLS Solicitors Limited (trading as RLS Law)
26 July 2024
[2024] EWHC 1899 (Ch)
High Court
Several companies sued their lawyers for messing up property deals. An earlier settlement agreement with other parties was thought to stop the lawsuit, but the judge decided the agreement only prevented suits against lawyers working *for the other side*, not their own. So, the lawsuit against the lawyers can continue.
Key Facts
- •Appeal against a decision to strike out a solicitors' negligence claim.
- •Claimants allege negligence by RLS Solicitors in relation to property acquisitions.
- •A settlement deed between the Claimants and other parties is central to the dispute.
- •The key issue is whether the settlement deed prevents the Claimants from suing their solicitors.
- •RLS Solicitors acted for multiple parties in the property transactions.
Legal Principles
Ordinary principles of contractual interpretation apply to releases.
Bank of Credit & Commerce International SA v Ali [2002] 1 AC 251
Contractual interpretation considers the natural and ordinary meaning of words, other relevant provisions, overall purpose, facts and circumstances known to the parties, commercial common sense, but disregards subjective intentions.
Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896; Arnold v Britton [2015] AC 1619; Wood v Capita Services Ltd [2017] AC 1173
There is no blanket rule of law that a party may not rely on its own wrong to secure a benefit.
Patel v Mirza [2017] AC 467
Outcomes
Appeal allowed.
The settlement deed did not prevent the Claimants from suing their solicitors. The court found that the deed's wording released claims against agents in their capacity as agents of opposing parties, not claims against a party's own agent for breaches of duty owed to that party.
Order of the Deputy Master striking out the claim set aside.
The Deputy Master's decision was based on a misinterpretation of the settlement deed.
Defendant's application to strike out or summarily dismiss the claim dismissed.
Consistent with the appeal being allowed.