A Chester woman, who sued a firm of solicitors for professional negligence, has secured £7,000 in damages after the firm settled the dispute before the trial and maintained they were not negligent.
The woman had taken out two loans with GE Money in 2007, one for £72,000 and one for £5,000. Both were secured on her property, and therefore her home was at risk if she was unable to keep up with the payments. At this time, she was 67 years old.
The woman was told by her lender that she had to get independent legal advice due to her age at the time of her application.
She made an appointment with Oliver & Co Solicitors in Chester, for them to advise her in relation to the loans and the implications of taking them out. The solicitor signed an ‘Independent Advice and Witness Certificate’ confirming that this advice was given. The appointment lasted no more than five minutes.
The woman later fell into arrears with the loan and repossession proceedings were started against her by the lender. She contacted Stephensons Solicitors LLP for assistance with the repossession proceedings. It soon became apparent that the original solicitors may not have advised the client properly and a claim was brought against Oliver & Co Solicitors for professional negligence.
Andrew Leakey, managing partner of the dispute resolution department, said: “We believe that the solicitors failed to take into account the woman’s age and her disability. Her disabilities were such that she was unable to read and write very well due to cataracts and had very limited ability to understand or manage her finances. She normally had a carer who helped her with these things, but he was not present at the appointment. It was not explained to her that she would lose her home if she was unable to pay the loan, and she was not advised that due to her age, there was a risk that she would not be able to continue to afford it.”
A claim for compensation was started in Court, and it was argued that had the client been properly advised in relation to the implications of the loan, and the risk to her house, she would never have taken the loan out.
The solicitors denied that they had acted negligently and defended the claim. However, the claim was settled before trial, with the woman receiving £7,000 in damages and payment of her legal costs.
Andrew commented: “Most people have to use solicitors at some point in their lives and expect to be advised correctly and have their best interests looked after. Sometimes solicitors do not meet that standard, and some clients then suffer a financial loss as a result. Under those circumstances, those clients should be entitled to some form of compensation.”
Stephensons specialises in professional negligence claims, and a partner in the team is a member of the Professional Negligence Lawyers Association.
ENDS
Editors’ notes
- About Stephensons: Stephensons is a North West law firm with eight offices across Greater Manchester, Cheshire and Merseyside. The law firm provides the full spectrum of legal services to individuals and businesses, with almost 400 staff and 31 partners.
All media enquiries: Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229
E: lct@stephensons.co.uk