What can I do if I have received negligent advice from a professional?

Whilst most professionals carry out work to a high standard, there may be instances where you have been let down by someone you have appointed and trusted to carry out an important job for you on your behalf.

Architects, surveyors, accountants, and solicitors can be negligent in various ways, and it is possible to make a claim against them if their negligence results in loss or damage. Some factors to consider when assessing if you think a professional has been negligent are follows:

Negligence by architects

1. Design errors: Incorrect or flawed designs and use of materials that lead to structural issues or non-compliance with building regulations.
2. Supervision failures: Poor supervision of construction works, leading to substandard building quality.
3. Contract administration: Mismanagement of contracts, resulting in cost overruns or delays.
4. Planning and building regulations: Failing to obtain necessary planning permissions or comply with building regulations.

Negligence by accountants

1. Incorrect financial statements: Errors in financial reports or accounts.
2. Tax advice: Providing incorrect or harmful tax advice.
3. Audit failures: Negligence in auditing practices, missing significant financial issues.
4. Breach of confidentiality: Failing to keep client information secure and confidential.

Negligence by solicitors

1. Incorrect legal advice: Providing incorrect or misleading legal advice.
2. Missed deadlines: Failing to meet important legal deadlines (limitation dates), leading to loss of rights or opportunities.
3. Drafting errors: Mistakes in drafting legal documents, such as contracts or Wills.
4. Breach of duty of care: Failing to act in the best interests of the client.

Negligence by surveyors

1. Incorrect surveys: Failure to identify issues with a property, E.g the presence of Japanese knotweed, dry rot, damp, or structural issues
2. Incorrect valuations: Failure to accurately value a property.

Factors to consider when making a claim

1. Duty of care: Establish that the professional owed you a duty of care.
2. Breach of duty: Show that the professional breached this duty through their actions or inactions.
3. Causation: Prove that the breach of duty caused you loss or damage.
4. Damages: Quantify the financial loss or damage suffered as a result of the negligence.
5. Limitation period: Be aware of the time limits for making a claim. Typically, this is six years from the date of the negligence, but this can vary.
6. Evidence: Gather all relevant documentation and evidence to support your claim.

There are several notable cases in the area of professional negligence which can provide insight and help with assessment concerning whether a negligence case can be established:

1. Bolam v Friern Hospital Management Committee (1957): Established the "Bolam Test" for determining professional negligence, stating that a professional is not negligent if they acted in accordance with a practice accepted as proper by a responsible body of professional opinion.
2. Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964): This case established that a professional can be liable for negligent misstatements causing economic loss, leading to the concept of "duty of care" in providing advice.
3. Caparo Industries plc v Dickman (1990): This case refined the duty of care in negligence claims, setting out a three-part test for determining whether a duty of care exists: foreseeability of damage, a proximate relationship, and whether it is fair, just, and reasonable to impose a duty.

Who regulates architects, accountants, solicitors and surveyors?

Architects

• Regulating body: Architects Registration Board (ARB) and Royal Institute of British Architects (RIBA).
• ARB: The ARB is responsible for regulating architects in the UK, ensuring they meet the required standards of education, practice, and conduct.
• RIBA: While RIBA is a professional body rather than a regulatory one, it provides accreditation and sets professional standards for its members.

Accountants

• Regulating body: Financial Reporting Council (FRC), Institute of Chartered Accountants in England and Wales (ICAEW), Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA).
• FRC: Oversees the regulation of auditors, accountants, and actuaries, promoting transparency and integrity in business.
• ICAEW, ACCA, CIMA: These professional bodies regulate their members, ensuring they adhere to professional standards and ethics.

Solicitors

• Regulating body: Solicitors Regulation Authority (SRA) and The Law Society.
• SRA: Responsible for regulating solicitors in England and Wales, ensuring they provide competent and ethical legal services.
• The Law Society: Represents solicitors in England and Wales, promoting the profession and setting standards.

Surveyors

• Regulating body:  Royal Institute of Chartered Surveyors (RICS)
• RICS:  Responsible for regulating surveyors, ensuring they perform the standards that is required of them.

How is compensation for negligence paid by professionals?

Architects

• Professional Indemnity Insurance: Architects are required to have professional indemnity insurance (PII), which covers claims made against them for negligence.
• Compensation process: If a claim is successful, compensation is typically paid through the architect’s PII. This may cover the cost of rectifying errors, additional expenses incurred, and other financial losses.

Accountants

• Professional Indemnity Insurance: Accountants must also carry PII to cover claims of negligence.
• Compensation process: Similar to architects, compensation for successful claims is paid through the accountant’s PII. This can include recovery of financial losses, costs of correcting errors, and other related damages.

Solicitors

• Professional Indemnity Insurance: Solicitors are required to have PII to protect against claims of negligence.
• Compensation process: Compensation for negligence is typically covered by the solicitor’s PII. It can include damages for financial losses, costs incurred due to the negligence, and other consequential losses.

Surveyors

• Professional Indemnity Insurance: RICS accredited surveyors must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets standards approved by RICS.
• Compensation process: Compensation for negligence is typically covered by the Surveyors PII. Ordinarily the value of claims will be assessed by way of diminution in value and any other consequential losses which are reasonably foreseeable.  The cost of repairs to cure any defects found should be considered in evaluated any diminution in value.

Limitation periods

• General limitation period: The standard limitation period for negligence claims is six years from the date the negligent act or omission occurred.
• Latent damage: If the damage was not immediately apparent, the limitation period might extend to three years from the date the damage was discovered (or could reasonably have been discovered), with an overall long-stop limit of 15 years from the date of the negligent act or omission.
• Professional advice: It is crucial to seek legal advice as soon as negligence is suspected to ensure compliance with these limitation periods.

How can we  help?

Stephensons provides expert advice on the merits of your claim, evaluating whether there is a valid claim for negligence, and determining what evidence will be needed. We will guide you through the legal process, ensuring compliance with procedural requirements and deadlines. We will negotiate with the defendant or their insurers to reach a settlement, potentially avoiding the need for a court case. If the case goes to court, we can represent you, presenting your case effectively to achieve the best possible outcome. By handling the legal aspects of the claim, we reduce the stress and complexity involved, allowing you to focus on other matters.

What is the process for a negligence claim?

1. Initial consultation

• Gathering information: We will take detailed information about your case, including the events that led to the alleged negligence and the impact it has had on you.
• Assessing the claim: The team will assess whether there is a potential claim and discuss the likelihood of success and potential compensation together with outlining any potential risks and costs estimates in pursuing the claim.

2. Evidence collection

• Document review: There will be a review all relevant documents, such as contracts, emails, financial statements, and any other pertinent records.
• Expert opinions: We may seek to obtain expert opinions to support your claim, demonstrating that the professional’s conduct fell below the required standard of care.

3. Pre-action protocol

• Following protocol: Stephensons will ensure compliance with the pre-action protocol for professional negligence, which aims to settle disputes without litigation.
• Letter of claim: We will draft and send a letter of claim to the defendant, outlining the allegations of negligence and the basis for the claim.

4. Negotiation and settlement

• Responding to defence: If the defendant responds with a defence, we will analyse it and advise on the next steps.
• Settlement discussions: We will engage in settlement negotiations, aiming to resolve the matter without going to court.

5. Issuing proceedings

• Preparing documents: If settlement is not reached, your solicitor will prepare the necessary documents to issue court proceedings if instructed to do so, including the claim form and particulars of claim.
• Filing the claim: The claim will be filed with the court

If your claim goes to court, we will ensure that you know what to expect. If you win your case, we can also assist with enforcing the judgement and can advise on the appeals process if appropriate. At the outset we will discuss the costs involved in pursuing a claim and explore funding options. Call our professional negligence experts today on   0161 696 6178.