Alexander Kuznetsov v Edwards Duthie Shamash (a firm) & Ors
[2024] EWHC 870 (KB)
Stephen John Finnan v Charles Russell Speechlys LLP
1 December 2023
[2023] EWHC 3058 (Ch)
High Court
A man sued his lawyers for bad advice that led to a costly court battle with his brother. The judge threw out the case because the man couldn't show he'd have been better off if his lawyers had given different advice. Even though he had multiple chances to explain how, he couldn't.
Key Facts
- •Professional negligence claim by Stephen Finnan against Charles Russell Speechlys LLP (CRS).
- •CRS's application to strike out Finnan's claim or for reverse summary judgment due to defective causation.
- •Finnan's counter-application to strike out CRS's defence or for summary judgment.
- •Claim arises from CRS's alleged negligence in advising Finnan to pursue s.994 petitions in a shareholder dispute with his brother.
- •Finnan alleges losses exceeding £6,000,000 due to CRS's actions.
- •CRS argues Finnan's claim lacks a coherent counterfactual scenario demonstrating loss caused by negligence and that demands for loan repayment were already made.
- •Finnan refused to amend his particulars of claim despite court orders.
Legal Principles
CPR 3.4(2): Court may strike out a statement of case if it discloses no reasonable grounds for bringing or defending the claim.
CPR 3.4(2)
A claim should only be struck out if it is bound to fail.
Bord Na Mona Horticulture Ltd v British Polythene Industries PLC [2012] EWHC 3346 (Comm) at [29] and Hughes v Colin Richards & Co [2004] EWCA Civ 266
CPR 24.2: Court may give summary judgment if the claimant has no real prospect of succeeding.
CPR 24.2
Causation of loss is essential for a cause of action in tort; a cause of action in negligence is only complete when damage occurs.
McGregor on Damages 21st edition. [8-003]
In professional negligence, the scope of duty is determined by the purpose for which advice was given.
Manchester Building Society v Grant Thornton UK LLP [2021] UKSC 20
A proposed amendment must be arguable, carry a degree of conviction, be coherent, properly particularised, and supported by evidence.
Kawasaki Kisen Kaisha Ltd v James Kemball Ltd [2021] EWCA Civ 33 at [18]
Outcomes
Claimant's claim struck out.
Claimant failed to establish causation of loss; his claim is deficient and lacks a coherent counterfactual scenario demonstrating how he would be in a better position had CRS acted differently. The court found the claimant's evidence contradicted his own assertions and that even if amended, the claim would still fail.