Jones Day negligent
US firm Jones Day Reavis & Pogue was found negligent in the High Court last week for the advice a former solicitor gave while acting in a conflict of interest, but the judge held that - despite being an English solicitor - he was not covered by the Law Society's conduct rules.
Mohamed Amersi, working in Geneva, was found to have acted for Jones Day clients the Saab brothers and the Saudi American Bank on a share placement without telling the brothers of a conflict of interest.
Jones Day now faces a damages claim of up to 33 million.
Mr Amersi's name was removed from the roll in 2001 because he had not sent renewal documentation.
In relation to his advice to the Saab brothers, the judge said: 'I do not regard his conduct as being that of a solicitor of England and Wales.
It must be remembered that the claim is against Jones Day not Mr Amersi.
It seems to me impossible to prescribe the duties of the Law Society's code [of conduct] to Mr Amersi and make Jones Day vicariously liable for breaches of that code when they themselves are not subject to the same code.'
As a result, he applied the common law - rather than the solicitors' practice rules - to the case.
The guide to professional conduct says that 'the general principles of professional conduct apply when practising as a solicitor abroad.'
Lista Cannon, the partner at Richards Butler who acted for Jones Day, said Jones Day made no submissions on the appropriate code of conduct.
She said: 'The judge found he had not addressed his mind to which code he was governed by.'
Ms Cannon said that her clients accepted the ruling, but added: 'We are not responsible for any loss allegedly arising as a result of the misunderstanding between Mr Amersi and the Saabs.'
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