Donsland ruling backs firms to act for dead clients

Solicitors may continue to act in the best interests of sole traders and other clients who have died, the Court of Appeal ruled last week.In Hoogstraten v Donsland Ltd, a civil action over property ownership, Donsland was controlled by a sole director, Mohammed Raja.In 1999, Mr Raja was shot dead and Nicholas van Hoogstraten applied to have the case struck out.

Donsland's solicitors, London and Brighton-based Healys, applied for extensions of time until a new director of Donsland could be nominated.Mr van Hoogstraten then applied for a wasted costs order against Healys on the grounds that the firm had exceeded Mr Raja's instructions.At first instance and on appeal, the courts held in Mr van Hoogstraten's favour, but last week the Court of Appeal ruled that Healys was entitled to act in the best interests of the company, even without instructions from the dead director.Last year, Mr van Hoogstraten was charged with conspiracy to murder Mr Raja.

He denies the charge and is currently on bail awaiting trial in April.

Pinsent Curtis Biddle was appointed by the Solicitors Indemnity Fund (SIF) to act for Healys on the wasted costs order.Alexis Roberts, an associate with Pinsents, said: 'SIF's decision to pursue the appeal has resulted in useful guidance from the Court of Appeal for solicitors on their authority to act in these circumstances.'Fraser Whitehead, the chairman of the Law Society's civil litigation committee, said: 'The general principle of this case reflects the growing reality of the difficulties of practice, and the intention of the judiciary to recognise this and to be sympathetic, applying a practical result.'Jeremy Fleming