If you’ve received advice from a professional that has caused you financial loss, you may be wondering what options are available to you. Whether you’ve dealt with a surveyor, accountant, financial adviser or a solicitor understanding the distinction between professional negligence, professional misconduct and poor service is essential — as each requires a different approach.
Our professional negligence solicitors in regularly help clients who have been let down by the professionals they trusted. Here’s what you need to know.
Understanding the Difference: Negligence, Misconduct, and Poor Service
The key to identifying what can be done when a mistake occurs is to assess whether what has happened is:
- Negligence on the part of the professional.
- A breach by the professional of their rules of professional conduct.
- Poor service; or
- A combination of some or all of the above.
What is Professional Negligence?
For example, if a surveyor undervalues a property for the purpose of a lender deciding to lend and, after sale of the property, there is a shortfall in the borrower’s repayment to the lender, the lender should consider a claim for professional negligence against the surveyor to recover at least some of the loss.
If the same surveyor, also had a pre-existing commercial relationship with the borrower, to the extent that it had a conflict of interests when advising the lender, and did not disclose the conflict and/or decline the instruction, it is highly likely that the surveyor has also breached the rules of professional conduct laid down by the Royal Institution of Chartered Surveyors (RICS).
If the surveyor also took an unacceptable length of time to undertake the survey and prepare their report, that could amount to poor service.
Proving a Professional Negligence Claim
The key point is that only if there has been negligence is it possible to pursue a claim and seek compensation for the losses that have resulted. To succeed in such a claim, it is important to clearly identify:
- The duty — what duty or duties did the professional owe you?
- The breach — how did they fail to meet the required standard?
- The Causation — how did that breach directly cause your loss?
- The Loss – including how those losses are calculated.
Due to the complex nature of some professional services, these simple concepts can manifest into detailed and complex factual and legal analysis.
It is important to also bear in mind that any claim against a professional is going to be referred to an insurer at the outset, and they will scrutinise how the claim is presented and seek to exploit any weaknesses in what is presented on behalf of the client to reject the claim.
Therefore, these claims need to be prepared and presented with care.
Complaining About Poor Service
Issues of poor service should always be raised with the professional firm in the first instance by way of a formal complaint.
If you don’t receive a satisfactory response, you can escalate to the relevant regulatory body:
- Accountants — Institute of Chartered Accountants in England and Wales (ICAEW)
- Surveyors — Royal Institution of Chartered Surveyors (RICS)
- Financial advisers — Financial Conduct Authority (FCA)
- Solicitors — Legal Ombudsman
It is likely that some sort of reprimand would be issued to the professional, possibly a reimbursement to the client of some of the fees paid, but any losses suffered would not be recoverable by pursuing this route.
Reporting Breaches of Professional Conduct
If there has been a breach of professional rules of conduct, this is a matter that should be referred to the appropriate regulator for the professional concerned, who should investigate allegations of professional misconduct.
Again, some sanction may result, which may be a formal reprimand, a fine or possibly being struck off from being allowed to practice but compensation would not result from this action being taken.
Speak to Our Professional Negligence Solicitors
If you believe you’ve received negligent advice from a professional and have suffered a financial loss as a result, our litigation team can help you understand your options and build a robust claim.
Contact Prosperity Law today if you think you have received poor professional advice on 0161 337 4646 or by filling out the form below.
About the author
Andrew Farrell is the Office Managing Partner and leads the Manchester litigation team. A solicitor since 1998 (SRA ID: 42723), he is an experienced commercial litigator handling a wide variety of business disputes, including professional negligence, breaches of contract, directors’ duties, shareholders’ rights, sale and supply of goods and services, construction disputes and fraud.
Andrew has represented clients in court proceedings up to and including the Supreme Court, but is also a strong advocate for alternative dispute resolution — particularly mediation — to achieve commercial, cost-effective solutions.
