Caselaw Digest
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Niprose Investments Limited & Ors v Vincents Solicitors Limited

17 April 2024
[2024] EWHC 801 (Ch)
High Court
Homebuyers lost money when an apartment building project failed. They sued their lawyers, who said they weren't responsible. A judge said the lawyers' case wasn't strong enough yet and gave the homebuyers another chance to improve their arguments before making a decision.

Key Facts

  • 35 claimants (60th to 94th) sued Vincents Solicitors (10th defendant) for professional negligence.
  • Claimants purchased 50 residential units in a buyer-funded, off-plan development scheme.
  • Development failed, resulting in claimants losing substantial upfront payments.
  • Claimants alleged Vincents failed to advise on risks of investment and lack of deposit protection.
  • Vincents applied for strike out or summary judgment.
  • The case involved multiple claimants and defendants, raising issues of joinder and case management.

Legal Principles

Solicitors' duty of care extends to advising on matters within their retainer and, exceptionally, on additional risks identified during the retainer.

This judgment

Solicitors are not general business advisors and usually do not have a duty to advise on the prudence of a transaction.

This judgment

A solicitor's duty to explain matters to a client depends on the client's experience; more explanation may be needed for less experienced clients.

Kandola v Mirza Solicitors LLP [2015] EWHC 460 (Ch)

In professional negligence claims, claimants must plead and prove a duty of care encompassing the losses claimed, and a causal link between the breach and the loss.

This judgment

The court may strike out a statement of case if it discloses no reasonable grounds for the claim or is an abuse of process (CPR 3.4(2)).

CPR 3.4(2)

The court may grant summary judgment if a party has no real prospect of success (CPR 24.3).

CPR 24.3

The scope of a solicitor's duty to advise depends on the client's needs and the purpose of the advice.

Carradine Properties Ltd v DJ Freeman & Co [1999] Lloyd’s Rep. P.N. 48

A solicitor's duty may include ensuring that advice is understood, especially for less sophisticated clients.

Dutfield v Gilbert H Stephens & Sons [1988] Fam Law 473

The SRA warning notice on investment schemes is relevant to determining solicitors' duties, but doesn't create a blanket duty to advise against all such transactions.

This judgment

Outcomes

Vincents' application for strike out or summary judgment was adjourned.

The court found that it was premature to decide the application without giving the claimants an opportunity to amend their pleadings to provide more specific details of their claims.

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