Battle for costs after firm loses negligence challenge

SOLICITORS INDEMNITY FUND: bunfight likely over 'millions'

A bitter negligence action against a firm of solicitors dating back to the last property recession stumbled towards resolution last week, clearing the way for a 'bunfight' for the massive costs of the case.

The claim was brought in 1991 by William Johnson, a businessman who exercised an option to purchase property in Hampshire in 1989 through a development company.

Mr Johnson alleged the option was exercised negligently by Gore Wood & Co, a Hampshire firm which has since merged several times.

The action was delayed by years after a summary judgment application by the firm was appealed by both sides through to the House of Lords.

Judgment was last week given for Mr Johnson by the High Court.

Damages have yet to be set, but they will be much less than the 3 million claimed - mainly comprising of interest payments - as the judge imposed a cut-off date for those payments.

His winnings are likely to be dwarfed by the costs of the case, payment of which also remains unresolved, pending a hearing and Solicitors Indemnity Fund appeal.

Shoosmiths partner Richard Cook, Mr Johnson's solicitor, said: 'I dread to think what the costs are but I imagine well over 1 million.'

Beachcroft Wansbroughs partner Harriet Strevens, acting for the fund, said: 'The costs will be in the millions.

There is no date for a hearing yet.

I expect that there is going to be a bunfight.'

Jeremy Fleming