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Setting the scope of solicitors' duties

BPE Solicitors v Hughes-Holland clarifies the application of the SAAMCo principle and the distinction between advice and information cases, writes James Turnbull

5 July 2017

The Supreme Court recently handed down its judgment in BPE Solicitors v Hughes-Holland [2017] UKSC 21 and, in doing so, provided helpful guidance for solicitors and their professional indemnity insurers on the application of SAAMCo. Lord Sumption, who was counsel in the original SAAMCo decision, thought that it had been misunderstood and incorrectly applied in a number of negligence cases.

Property development

Mr Gabriel agreed to lend £200,000 to Mr Little, a builder and developer, in connection with the commercial development of a disused heating tower. Mr Gabriel understood that Mr Little would use the £200,000 to develop the property. Mr Gabriel visited the property and formed the view that after development the property would be worth £400,000.

The property was owned by a company controlled by Mr Little, High ...

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