A Basic Guide To Professional Negligence Claims

There has been a rise in professional negligence claims over the years.  This increase is believed to be based on the increased complexity of work being carried out by professionals and their clients relying more on their advice.  Society has also become more aware of legal rights and less willing to accept a loss.  These losses can be hard felt when there is an economic turndown and more people will want compensation from the professionals who have let them down.  

What Is Professional Negligence

Professional negligence happens when a professional does not perform their responsibilities to a level that is required of a competent person in their field.  The standard for the duty of care will depend on the case and could be higher or lower than what you might expect.  It will also depend on the profession and the undertaken contract.  Professional negligence claims are made against many different professionals including insurance brokers, accountants, lawyers, surveyors, and lenders.  

Do You Have A Claim?

To bring forward a claim of professional negligence, there are four key elements that need to be established.  All of these elements must be established before moving forward.  

The first is duty of care and professionals normally have a duty of care to their clients.  An example of this is advice provided by an independent financial advisor who has a duty of care to ensure recommended products are suitable for their clients.  They also need to ensure their clients fully understand the risks associated with each of the products.

The second element is a breach of duty where the professional has fallen below the reasonable standards for someone in their profession.  An error made by the professional is not always viewed as enough to prove negligence.  An example of this is a lender failing to explain the implications of a fixed-rate loan that has been entered into with a customer.

The third element is causation which is the loss having been caused by the professional negligence. You cannot make a claim if the loss would have occurred with or without the negligent advice.  To test this, you will need to consider if the loss would still have happened but for the professional’s negligence.

The last element is loss because the claim is meant to place you back in the position you were before the negligence.  Depending on the circumstances of your case, loss can be hard to quantify or provide evidence of particularly if the loss was a lost opportunity.  As the claimant, you have a duty to mitigate losses which is to keep them as low as possible and need to take the reasonable steps to do this when you can.

If you have these elements, you should also consider if there is any reason why the professional might argue that you caused or contributed to the losses you face.  This is a common defense known as contributory negligence and you need to be aware of it.  If they are able to show that you contributed to the loss or negligence in any way, your claimed losses will be reduced.

If you are suing a solicitor for negligence you will need to seek professional help.

Are There Any Deadlines For These Claims?

There are some legal deadlines that you need to know about for professional negligence claims.  These are the limitation dates and they differ depending on the type of claim being made.  Generally, you will have to make this claim within six years of the date of the negligence occurring.

There are some exceptions such as you not knowing that you have suffered any damages and not knowing the identity of the defendant.  Not knowing that the damages were caused by the negligence of the professional will also extend the limitation period.  In these cases, the clock starts ticking three years after the date you acquired the necessary knowledge.

Regardless of these limitations, there is a 15 year long stop date.  This means that if you gain the knowledge 14 years after the event, you will only have one year to bring the claim forward.  After this deadline, your claim will be time-barred and you will not be able to proceed.  The same is done for any claims that are not made within the limitation period.

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