From: Martin Hogg <mhogg@staffmail.ed.ac.uk>
To: obligations@uwo.ca
Date: 12/12/2011 12:09:24 UTC
Subject: Recent judgment on scope of duty in professional negligence and loss of chance damages


Those members of the group with an interest in the scope of professional
negligence, and/or loss of chance damages, may be interested in a judgment
of the Court of Session handed down on 8th December: Kirkton Investments Ltd
v VMH LLP [2011] CSOH 200 (available here:
http://www.scotcourts.gov.uk/opinions/2011CSOH200.html).

A firm of solicitors were sued by former clients on the grounds that their
professional negligence had interrupted the marketing of new homes. The
interruption delayed the marketing until after the slump in the property
market which began in 2007. There was a dispute about both the scope of any
duty owed to the former clients (there is discussion of South Australia
Asset Management Corporation v York Montague Ltd [1997] A.C. 191 and similar
cases, including the New Zealand case of McElroy Milne v Commercial
Electronics Ltd [1993] 1 NZLR 39) as well as the extent of any damages that
might be due.

The judge holds that the solicitors were in breach of a duty of care, the
question then becoming one of the damages payable. Applying the approach
taken in Allied Maples Group Ltd v Simmons & Simmons [1995] 1 W.L.R. 1602,
he assesses damages for loss of a chance based upon a number of assessable
lost chances discussed in the judgment.

Martin Hogg,
Edinburgh Law School


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