Court strikes out part of £10m negligence claim against Pinsents
Pinsent Masons has successfully won part of its bid to overturn a £10m negligence claim brought against the firm by former client, Shepherd Construction. The firm applied to strike out parts of Shepherd's claim relating to the firm's advice, with the company arguing Pinsents had a continuing duty to advise it of changes in the law.
January 27, 2012 at 10:55 AM
2 minute read
Pinsent Masons has successfully won part of its bid to overturn a £10m negligence claim brought against the firm by former client, Shepherd Construction.
The firm applied to strike out parts of Shepherd's claim relating to the firm's advice, with the company arguing Pinsents had a continuing duty to advise it of changes in the law.
Mr Justice Akenhead ruled earlier this month ( 22 January) that the firm's contract did not constitute a retainer and as such Pinsents did not have any continuing duty to advise about relevant changes to the law.
Shepherd claims Pinsents negligently drafted a clause in 1998 that failed to take account of changes brought in by the 2002 Enterprise Act, arguing that as long-standing clients, Pinsents' duty of care should extend to reviewing the construction contract at a later date.
Mr Justice Akenhead accepted arguments put forward by the top-20 law firm's advisers, Beale and Company, that Shepherd did not have a retainer with Pinsents and struck out the relevant paragraphs of the claim.
Costs have been awarded against Shepherd, but it is unclear whether the company will appeal the judgement. Other aspects of the claim are ongoing.
The claim originally came about following the collapse of a joint venture to build the Trinity Walk shopping centre in Wakefield. Trinity Walk Wakefield, a joint venture between Modus and CIREF, went into administration in 2009 with York-based Shepherd responsible for the construction.
When the joint venture collapsed Shepherd attempted to withhold payment from subcontractors including steel contractor William Hare; however, a judgment in 2009 ruled that it could not withhold payment as the contract did not allow it.
Antony Smith, senior partner at Beale and Company said: "Pinsent Masons denies all liability. The court has struck out the claimant's argument that Pinsent Masons was subject to a continuing retainer and a duty to keep earlier advice under review. The legal profession will be reassured that they are not their clients' insurer."
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