Limitation restored in negligence cases

The House of Lords last week overturned the case which gave clients a green light to follow solicitors and other professionals to the grave with negligence claims.

The Court of Appeal's 1999 ruling in Brocklesby v Armitage & Guest [2001] 1ALL ER 172 destroyed the limitation position which gave solicitors effective indemnity from the risk of negligence claims arising six or more years after advice was given.

The court confirmed this in its ruling in Cave v Robinson Jarvis & Rolf.

Last week's decision by the Lords - overturning Cave - was welcomed by practitioners fearful that under the Court of Appeal decision, solicitors would have to keep client files indefinitely.

It is estimated that hundreds of cases have been stayed in anticipation of the ruling.

Insurers will be able to review their reserves for damages and costs because many cases will now be dismissed.

Lord Millett said the Court of Appeal finding 'subverts the whole purpose of the Limitation Acts.

The harshness of the rule is evident.

In the absence of any intentional wrongdoing on his part, it is neither just nor consistent with the policy of the Limitation Acts to expose a professional to a claim for negligence long after he has retired, and has ceased to be covered by indemnity insurance'.

Helen Staines, the partner at City-based Beachcroft Wansboughs who acted for the Solicitors Indemnity Fund on behalf of Robinson Jarvis & Rolf, a Portsmouth law firm, said: 'The decision has restored the limitation defence in professional negligence cases and will come as a relief to all professional firms, retired professionals and their insurers.'

Jes Salt, claims manager at the SIF, said: 'This decision, which restores the legal position as it had previously been understood, will be welcomed by professionals and their insurers.'

Jeremy Fleming