Carradine Properties v D J Freeman (1982) [1955-95] PNLR 219
Citation:Carradine Properties v D J Freeman (1982) [1955-95] PNLR 219
Link to case on WorldLII (reference).
Rule of thumb:If you enter a contract with another person through a Solicitor/Lawyer, and it turns out this other person was a fraudster & you lose your money, can you sue the Solicitor/Lawyer? The general answer to this question is ‘yes’ – as a general rule this is deemed to be actionable negligence.
Judgment:
If a solicitor notices anything unusual about a transaction, or any dangers, pitfalls or red flags surrounding it that set off alarm bells with them, they are obliged to point these out to their client, ‘A solicitor's duty to his client is to exercise all reasonable skill and care in and about his client's business. In deciding what he should do and what advice he should tender the scope of his retainer is undoubtedly important, but it is not decisive. If a solicitor is instructed to prepare all the documentation needed for the sale or purchase of a house, it is no part of his duty to pursue a claim by the client for unfair dismissal. But if he finds unusual covenants or planning restrictions, it may indeed be his duty to warn of the risks and dangers of buying the house at all, notwithstanding that the client has made up his mind and is not seeking advice about that. I say only that this may be his duty, because the precise scope of that duty will depend inter alia upon the extent to which the client appears to need advice. An inexperienced client will need and will be entitled to expect the solicitor to take a much broader view of the scope of his retainer and of his duties than will be the case with an experienced client’, 12-13, Donaldson LJ
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.