Two decades after the landmark decision in Royal Bank of Scotland Plc v Etridge [2001] UKHL 44, an article by Dr Eleanor Rowan in the Conveyancer and Property Lawyer draws on interviews with 28 solicitors who have experience acting for lenders in secured lending transactions to show how, in practice, independent legal advice is not being delivered in accordance with Lord Nicholls’ guidelines. With the value of lenders’ security at risk if market conditions deteriorate, this should be a concern to law firms and their insurers. Etridge is also discussed in a litigation context, in an article on Undue influence, litigation funding and book building in group proceedings, by Prof Simone Degeling and Prof Michael Legg in Civil Justice Quarterly. Both articles are available on Westlaw.
Brokers are reporting slightly improved market conditions, which could mean that some firms will change insurers. Changing insurers carries risks and it is critical that firms question all their staff, not just partners, before submitting proposal forms.
There have been several high profile law firm failures and may be more in the pipeline. Firms considering acquisitions of offices, teams, staff or clients should be cautious about the successor practice risks. Note too, that there are other areas of potential successor liability which may not be covered by insurers. Mistakes cannot be rectified. We have advised on several hundred cases, including many relating to the collapse of US and other international firms.
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