Solicitor—Retainer—Terms and limits of retainer

Chancery Division, Floyd J, 11 March 2010

Although a solicitor is not normally required to give general commercial advice to a client, he may be negligent in failing to ensure that his client is properly aware of the risks of proceeding with a transaction in the form of contract drafted.

David Head (instructed by Wedlake Bell) for the claimant. Tom Leech (instructed by Henmans LLP) for the defendant.

The claimant was engaged in the acquisition and running of a brewery and a chain of public houses.

It encountered financial difficulties and decided to sell off all its properties. It instructed the defendant solicitors in respect of the sale.

The transaction was completed late and on less favourable terms than the claimant had wanted. The claimant brought proceedings contending that, by reason of the defendant’s negligence, the transaction had been completed late and on relatively unfavourable terms.

The alleged negligence included an allegation that the defendant