Counter-claims 'have PI implications' - Professional Indemnity Insurance for Solicitors

12/08/2008

Solicitors considering recovering unpaid fees from clients could find they face Professional Indemnity (PI) implications if the client counter-claims, it has been noted.

The assertion is made by Nick Bird, partner in the professional risks group at legal practice Reynolds Porter Chamberlain, in an article for Legal Week.

He advises that solicitors are unlikely to want to waive their costs, but that PI insurers are apt to be equally resistant to covering the fees.

Such a situation could arise if the client offers to drop the negligence claim in return for the solicitor waiving their fee.

Mr Bird writes: "There are a number of issues to consider and firms will not want to underestimate the impact these negligence counter-claims can have.

"They can give rise to tensions with their PI insurers."

Monetary guidance resource Financial Advice recently suggested that solicitors are likely to see more negligence claims associated with title defects in the current falling property market.

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