A recent High Court ruling suggests solicitors are not obliged to inform clients of advantageous mistakes made by their opponent

In Tamlura v CMS Cameron McKenna, the High Court considered whether a solicitors firm is obligated to tell a client if, during a transaction, the other side makes a mistake which operates to the client's advantage. In this article, we consider the court's decision and the practical implications for solicitors.

In 2000, Tamlura instructed Camerons in connection with the sale of its share in Tamlura International Holdings to a company called The Innovation Group (TIG). TIG paid £40m for the shares; £21m of the consideration was to be paid in cash and £19m was to be paid by the allotment of shares in TIG representing that value. On completion, Tamlura received a cash payment of £21m and £15m worth of shares. The agreement made provisions for TIG to retain the remaining £4m, which represented the outstanding share consideration to meet any liabilities, indemnities and warranties for a two-year period following completion. The remaining £4m of shares was to be allotted two years later, when the extent of the liabilities would be known.