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FirstCity Insurance Group Ltd v Orchard (a firm)

4 October 2002

Solicitors - Negligence - Barristers - Claimant issued proceedings alleging that agreement to take underlease was not binding - Claim ultimately succeeded on appeal on point taken for first time by Court of Appeal - Claimant penalised in costs because point had not been taken before - Claimant had suggested point to legal advisers who had rejected it as wrong - Claim against solicitors and barrister in negligence failed - Defendants’ advice and conduct of proceedings not outside range of possible courses of action reasonably competent members of profession might take in circumstances - Solicitors entitled to rely on barrister’s advice In 1992 MML took over Frizzell but only wanted to acquire those companies in the Frizzell group which were engaged in financial services and not those engaged in insurance broking. Accordingly the insurance broking business of Frizzell was bought out by FirstCity in a management buy-out. As part of the management buy-out FirstCity agreed by a Dece...

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