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Solicitors’ negligence: no recoverable loss, causation strike-out rejected, ex turpi strike-out rejected, and limitation — Afan Valley Ltd v Lupton Fawcett [2024] EWHC 909 (KB) (England and Wales)

Published on: 08 May 2024

Published by a LexisNexis Dispute Resolution expert
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Article summary

Afan Valley Ltd (in administration) v Lupton Fawcett (a firm) [2024] EWHC 909 (KB)

What are the practical implications of this case?

Where a professional negligence action is contemplated, advisers evaluating loss must examine the claimant’s actual factual position with rigour. That assessment must reflect the circumstances as they truly are, rather than how they might ideally be presented. In relation to a strike out on factual causation, when that question is disputed, it will ordinarily call for a trial so the evidence can be tested before the court determines that factual causation is not made out. Summary disposal will rarely be suitable where competing factual narratives persist. As for ex turpi causa, advisers should continue to consider whether applying the doctrine would run counter to the underlying objective of the prohibition that has been breached.

What was the background?

Gavin Woodhouse established a collection of companies to promote investment schemes through special purpose vehicle companies (SPVs)...

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