High Court sees rising professional negligence claims

The latest figures from the High Court show the number of professional negligence claims have more than doubled in twelve months.

According to the figures, the total number of claims rose from 147 in 2008 to 339 in 2009.

Claims against accountants rose from 0 in 2008 to 28 in 2009, claims against surveyors and estate agents from 1 to 17 and against solicitors from 80 to 210, more than any other type of claim. In addition the number of claims against other professionals rose from 66 to 84, an increase of more than 25%.

Browne Jacobson LLP professional indemnity expert Jim Hobsley said: “The economic conditions mean that all professionals, in particular solicitors, have found themselves first in the firing line when disgruntled clients are looking for someone to sue.

"The duties owed by solicitors are particularly onerous so they are a preferred target. As a result of the shrinking of the property market and, in particular, the buy-to-let market since 2007, a large proportion of the claims lodged in the High Court are likely to have been by lenders against solicitors engaged in conveyancing matters.”

Hobsley added: “The number of claims against professionals has increased every year since 2006 and we expect the trend to continue. We have already seen insurers reducing the number of solicitors on their books whilst others have pulled out of the solicitors’ professional indemnity insurance market all together. If these trends continue, premiums will undoubtedly increase and we may see many more firms simply shutting up shop. Some solicitors and smaller practices will seek to merge in order to achieve economies of scale, but their potential liability for claims may follow them into the merged practice creating potential pitfalls for their new colleagues. Effective and demonstrable risk management is the best way to reduce both premiums and claims.”