A blow for case management?

Tuesday 24 January 2012 by Rachel Rothwell

The Gazette reported last week on a case in which former firm Bevan Ashford faces legal action over advice given free of charge by a newly qualified solicitor. Given the number of firms out there offering a free half-hour of advice to new clients, it’s no wonder that so many solicitors have commented on the story.

But there is a whole other aspect to the case, which might affect how far judges are prepared to go in future when it comes to managing trials. Padden v Bevan Ashford was an example of quite daring (if ultimately flawed) case management, at a time when Lord Justice Jackson and the senior judiciary are seeking to instil a ‘change in culture’ towards a more hands-on attitude to managing cases by judges.

But in this instance it backfired.

What would probably have been a two-day trial was halted after the first day by the trial judge, only to then be overturned on appeal, with the case sent back down to Bristol District Registry to start again at square one. The trial judge had stopped the trial because he very firmly believed the claimant had not established the required breach of duty by Bevan Ashford. He saw this as clear cut, believing the claimant’s case would impose such a duty on solicitors who give free advice to clients coming in off the street as to be an ‘absurdity’.

But unfortunately for the judge and for the defendants, the Master of the Rolls Lord Neuberger disagreed, and decided the case should be heard. Neuberger noted that the decision to halt the proceedings had been ‘particularly unfortunate’ given that in any case the trial had only been likely to last one more day.

He said: ‘The active case management of the sort which the judge adopted in this case would, in some circumstances, be appropriate: if a judge forms the clear and correct view that a claimant has not proved her case on her evidence, then it can save money and court time if he encourages the defendant to call no evidence.

‘But it is a high-risk course to take, as the history of this case shows, and it should only be adopted in a very clear case.

‘The judge thought that this case was very clear, and he explained why in a well expressed judgment. However, for the reasons given in this judgment, I think that he was mistaken.’

It will take a very brave trial judge to take similar action in future. After all, however ‘clear and correct’ they may believe their decision to cut short a case, there is no guarantee that the Lords Justice of Appeal will see it in the same light.

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Comments

Pressure in mags' courts

There is a lot of pressure to case manage v actively in the magistrates' courts as well and this is an interesting issue.

Read the Judgment - please!

Not to be picky but the Judgment was not in respect of the free advice given by the NQ (where she rightly advised the client not to sign), the real problem was the partner who later signed documentation saying the client had been properly advised as to the risks, without ensuring she had a lengthy meeting with him, a letter of advice, etc. He seems from the judgment to have relied on the existence of the free meeting.

The NQ doesn't appear to be at fault here. It's partners deciding to sign docs without forcing the client to have a proper chargeable meeting and detailed advice in writing. Etridge might be a pain for solicitors, but if you follow it, you should be protected and absolutely reasonable to charge the client for the costs of doing that, If we all did that, clients wanting solicitors to sign their indemnity insurance away for free would have to accept that's not going to happen.

Read the judgment

If you do read the judgment, you'll find that the case was not "a blow for case management", but a decision which serves as a reminder to solicitors of (i) the duties imposed by the decision in Etridge and (ii) the importance of keeping attendance notes. Presenting it as "a blow for case management" is to miss the practical points which emerge from the judgment.

Case Management

I have read a lot of coverage on this case, most of it appears wildly wide of the mark.

If a client tells you she is going to give away all her assets to a stranger, to whom she owes nothing at all, because of pressure from her husband, it seems most solicitors commenting on this case agree that this is a perfectly normal situation that a solicitor can do nothing to avoid and that there should not be a requirement to advise properly in accordance with the principles laid out in Etridge. This is plain wrong, and has been ever since Etridge.

This case does not spell the death of the free half hour - all that's expected of a solicitor is to exercise the ordinary skill and care of a reasonable solicitor - is that really too much to expect.

Advising someone simply to 'not sign' is a red herring. Is it really the case that if a conveyancer told you not to buy a house (it's really, really, ugly) and then fails to transfer the title / the house is landlocked etc, he can escape liability by simply saying ' well I told you not to buy it!'.

If the advice is "do not

If the advice is "do not sign" and you subsequently do, why is the solicitor liable? You have not followed the advice.

If the advice is "sign it" and you don't, is the solicitor also liable?

Because..

It is not for a solicitor to approve or veto a transaction, but to give an informed guidance on the implications of signing. I would have thought that a rather straightforward proposition. (and it certainly the law, according to Lord Nicolls in Etridge)

Wide of the mark

The coverage in the Gazette is certainly wide of the mark, because it wants to present the case as some kind of "blow to case management", rather than analysing what was said in the judgment of the Master of the Rolls. The case decides nothing new. The trial judge simply stopped the case (or, more accurately, invited a submission of no case to answer, to which he then acceded) when it was not appropriate to do so, because a number of questions needed to be investigated through cross-examination of the defendant's witnesses. The judgment of the Master of the Rolls reiterates the guidance which was provided to solicitors in Etridge.

If the solicitor's advice is "do not sign" and the client signs (or "sign it" and the client does not sign), the solicitor may well have a causation defence, which is one of the defences which Bevan Ashford are trying to run (see paragraphs 20 and 58 of the judgment).

Not sure why any lawyer in

Not sure why any lawyer in their right mind would want to give a free meeting/advice, to total stranger, on a matter worth several £100,000's...

Do we really value ourselves so low?

No other business/profession would consider it.

Simples - if the 'client' doesn't want to pay for advice show them the door PDQ!!

case management

This is a very interesting article about case management.As a Bankruptcy Attorney Columbus Ohio I understand very well this kind of situations.I had a similar case when someone solicitated my advise and he did the contrary and when he noticed that it was wrong tried to make me responsible of his mistake.