On 6 March, 1992, a firm of solicitors started a claim in the Crewe County Court against a former client for the recovery of £6,840 of fees for acting in a small building dispute. Eight years later the House of Lords handed down their opinions in the landmark case of Arthur JS Hall v Simons [2000] which removed immunity from suit for advocates for negligent acts and omissions in court. The solicitors’ fees claim had been met with a counterclaim from Mr Simons alleging negligence in the conduct of the building dispute. If you Google ‘Arthur JS Hall’ you will get around 1,200 results; it is probably not the kind of notoriety that the firm anticipated when it started its £6,840 fees claim.
Of course, it is difficult to know whether a client would have brought its negligence claim even if the firm had not pursued its fees. In practice, the only time when you know for sure is when the former client immediately suggests a ‘drop hands’ settlement. This is not uncommon. However, there are undoubtedly a significant number of fee claim-induced negligence claims which then just take on a life of their own. The current economic downturn will inevitably lead to an increase in unpaid invoices. This has led some insurers to express concern about a knock-on increase in negligence counterclaims.
