What is professional negligence?
Professional negligence arises when a professional fails to meet the standard of skill and care expected of a reasonably competent practitioner in their field, and that failure causes you a quantifiable loss.
Three elements must be established:
– Duty of care: the professional owed you a legal duty to act with skill and care
– Breach of duty: their work or advice fell below the standard of a reasonably competent practitioner.
– Causation and loss: the breach directly caused you a measurable financial loss.
Claims may be brought in contract or in tort. Both routes are often available, and the choice can affect your limitation period and the losses you are entitled to recover.
Professionals we bring claims against
Solicitors and barristers
Legal professionals owe strict duties to their clients. Common claims arise from missed court deadlines, negligent conveyancing, poor litigation advice and failure to advise on limitation periods. Guidance on complaints is available from the Solicitors Regulation Authority and the Legal Ombudsman, though a formal negligence claim is distinct from a complaint.
Accountants and auditors
Negligent accountancy advice can create unexpected tax liabilities, missed reliefs or inaccurate financial reporting, each of which can have serious commercial consequences for your business.
Surveyors and valuers
A negligent valuation or survey can result in significant overpayment or unforeseen remediation costs. We have pursued surveyor negligence claims involving substantial financial loss for our clients.
Architects and construction professionals
Design defects, specification errors and project management failures can be costly. We advise clients who have suffered loss from negligent architects, engineers and other construction professionals.
Financial advisers and IFAs
Unsuitable product recommendations, poor risk assessments and failures to disclose conflicts of interest can cause significant financial harm to individuals and businesses alike.
Tax advisers
Negligent tax planning, errors in returns or failure to identify available reliefs can leave you facing unexpected liabilities and penalties.
Insurance brokers
A broker who fails to arrange adequate cover or advise correctly on policy terms can leave you exposed to an uninsured loss at the worst possible time.
Other regulated professionals
We also advise on claims against other regulated professionals, including engineers and quantity surveyors, where financial rather than personal injury loss is involved.
Examples of professional negligence
Professional negligence can take many forms. Common examples include:
– A solicitor missing a limitation date, preventing a client from pursuing a valuable claim.
– Defective conveyancing advice on a transaction, resulting in a disputed title.
– Poor estate management causing losses to beneficiaries.
– A surveyor failing to identify structural defects, leaving a buyer with significant repair costs.
– A financial adviser placing funds in unsuitable high-risk investments.
– Defective tax advice leading to unexpected liabilities or penalties.
– An architect whose design errors resulted in costly build defects.
How to bring a professional negligence claim
The starting point is a careful review of the advice received and the loss suffered. Where a claim has merit, expert evidence from an independent specialist will typically be required to establish that the professional fell below the required standard.
Most claims are subject to the Pre-Action Protocol for Professional Negligence, which sets out the following steps before proceedings are issued:
– Letter of claim: an open letter setting out the facts, allegations and estimated losses.
– Acknowledgment: the professional must acknowledge receipt within 21 days.
– Letter of response: the professional has three months from acknowledgment to admit, deny or partially admit the claim.
– Negotiation: the parties have up to six months from acknowledgment to attempt settlement before proceedings may be issued.
Where agreement cannot be reached, we will advise on alternative dispute resolution (ADR) or issue court proceedings on your behalf.
What you can recover
The aim of damages in a professional negligence claim is to restore you to the position you would have been in had the negligence not occurred. Recoverable losses typically include:
– Direct financial loss caused by the negligent act or omission.
– Consequential loss, provided it was reasonably foreseeable.
– Wasted costs incurred as a result of the professional’s failure.
– Interest on the principal sum recovered.
– Legal costs, subject to the court’s discretion.
You are required to take reasonable steps to mitigate your losses, and any contributory negligence on your part may reduce the damages awarded. In most cases, the professional’s professional indemnity (PI) insurance funds the defence and any settlement, making claims commercially viable to pursue.
Time limits for professional negligence claims
Acting promptly is essential. Under the Limitation Act 1980, the primary limitation period is six years from the date the cause of action arose.
Where you could not reasonably have discovered the negligence at the time, section 14A of the Limitation Act 1980 provides a three-year extension from the date you first had the knowledge required to bring a claim. Section 14B imposes an absolute 15-year long-stop from the date of the negligent act, regardless of when you became aware of the loss.
Time limits can be complex and fact-specific. If you are approaching a deadline, or are unsure when time began to run, seek advice immediately.
Common questions about professional negligence claims