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Monthly Archives: May 2012

Collyer Bristow defends negligence claim

By Professional Negligence Department | Published: May 28,2012

At the very high, corporate, end of the professional negligence claim scale, things can be terrifyingly costly, particularly when they don’t work out.

Take, for example, the recent case successfully defended by legal firm Collyer Bristow. It faced accusations that 555 claimants had suffered investment scheme loss as a result of conspiracy, fraud and general dishonesty.

On dismissing the allegations, Mr Justice Hamblen noted that “although the claimants are understandably aggrieved to lose their cash contributions and receive back only limited tax relief, there are obvious risks in going into aggressive tax schemes which offer the possibility of almost immediately doubling your money”.

As so often seems to be the case with investment scheme professional negligence claims , the question was one of risk – or, to be more precise, of just how much risk the claimants knowingly accepted was inherent in the scheme they chose to invest in.

Despite receiving a favourable ruling from the judge, the case will continue to occupy Collyer Bristow for some time yet – there is every indication that it will now launch an indemnity costs claim against the claimants, and with costs outstripping the £15 million mark, the claimants have every right to be fearful.

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Family law issues of expert evidence

By Family Department | Published: May 28,2012

The suggestion that the 2011 Family Justice Review (FJR) found “serious issues” surrounding the quality of some psychological reports used in family courts has been countered by plans from the justice department to introduce minimum standards and remove incompetent, so-called, experts.

Family law reform campaigner John Hemming MP spoke out about the perceived overuse of expert witnesses in a parliamentary debate held on 24 May, where he described the notion that psychologists could come to conclusions about the merits of people as parents without meeting them face to face as an “absurdity”.

He also claimed, damningly, that some expert witnesses would provide contradictory opinions depending on which side they were giving evidence for, or more pertinently, who was paying for their services.

In his response, Justice Minister Jonathan Djangoly said there would be wide reform of the family court system in a bid to improve fairness and efficiency. He said expert evidence would continue to have an important place in certain cases, but the Government would work to ensure it is always delivered in a timely manner and be of “high quality”.

The British Psychological Society (BPS) welcomed the proposals regarding expert witnesses. A spokesperson said, “The BPS would be very pleased to engage with the Department of Justice to review the role of expert witnesses in this context and develop improved codes of practice and guidelines.”

Julie Doughty, former solicitor and now lecturer in law at Cardiff University, was a member of the publishing team which produced the Evaluation of the Legal Services Commission pilot on Alternative Commissioning of Expert Witnesses in 2011. Ms Doughty said contrary to an assertion in a media report the FJR panel was not itself critical of the quality of psychological reports.

She added, “Reports to courts by expert witnesses are not determinative. The case is instead determined by the judge or magistrates on the whole of the evidence presented to them. No-one claims that all clinical diagnoses presented to the court are 100% infallible, just as they are not in everyday clinical practice. However, there is presently no evidence that children are routinely taken into care through ‘incompetent psychologists and other experts’ as stated in this press report.”

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Brighton most popular area outside London for young professionals to live

By Residential Department | Published: May 25,2012

A new report has revealed that many young professionals are eager to find a house sales solicitor in Brighton to help them buy a home, as Brighton and Hove is the most popular area outside of London for this group to live.

According to research conducted by Lloyds TSB, which used Land Registry figures, Brighton and Hove had the most property sales amongst professionals aged between 25 and 44 from February 2011 to February 2012 out of any other town in the UK, excluding the capital.

Housing economist at Lloyds TSB said, “The typical profile of young professionals is that they tend to have university qualifications, are in well-paid occupations and like to take full advantage of living in or close to the city, either for work or leisure purposes.

“Our analysis certainly suggests this to be the case with Brighton as the leading hot spot for young aspiring urbanites.”

Andy Garth, former president of the Brighton and Hove Estate Agents Association, has stated that the survey has proved the area has all the qualities young professionals are seeking when they choose to begin the residential conveyancing process.

Mr Garth said, “It’s great news for the city. Brighton and Hove is a great place to live. It always has been and it always will be. We have the sea, the nightlife and the weather – and we are cheaper than the capital.”

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Landlords take advantage of mortgage rates and the thriving rental market

By Residential Department | Published: May 23,2012

Although many buyers hoping to make their first steps on the residential conveyancing process are struggling to scrape together enough money for a deposit, another type of buyer is reportedly able to flourish in today’s property market.

Landlords are making the most of the surge in the rental market and are buying properties to rent out to young professionals and families who are unable to buy a home of their own.

It has been reported that even though rates on buy-to-let loans have risen over recent months, landlords are still able to secure rates of below 4% on mortgages, meaning they can take advantage of the increasing rent prices.

Trade body the Council of Mortgage Lenders has said that the average deposit for a landlord is 25% while rent covers 125% of an interest only mortgage repayment.

The organisation has also stated that although there are some good opportunities for investors at the moment, landlords should carefully consider which properties they want to buy before seeking a property conveyancing solicitor.

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Sharp property price hikes over 60 years show investment in a home is worth it

By Residential Department | Published: May 23,2012

Although it has been widely reported that property prices have recently hit an all time low across the UK, it has been revealed that those beginning the residential conveyancing process today are paying 105 times as much for their home as they would have paid 60 years ago.

According to a new report, buyers would have spent an average of £1,520 on a home in the yeart the Queen was crowned. During the Silver Jubilee, in 1977, the average cost had risen to £9,737 which is still a great deal cheaper than the cost of a property today.

Now, buyers are required to spend an average of £160,000 on a property, while those hoping to buy a home in the capital will have to pay considerably more – the average cost of a home in London is £354,300.

Hamptons International, the estate agent which carried out the research, found that London properties had risen in price134-fold since 1952 and 21-fold since the Silver Jubilee.

Adam Challis, head of research for the estate agent, said, “Britons are well known for their love affair with bricks and mortar, and our jubilee property price analysis goes some way to prove just what a reliable investment property has been over the long-term.

“A 105-fold increase in the value of the average home in the UK over a 60 year period equates to a profit of just over £7 a day.

“This profit is inflated even more in London, where price growth represents £16 a day over a 60 year period, representing a rather healthy return on investment.”

To find out more information about Healys conveyancing solicitor in London and Brighton please click here.

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Civil-partnership dissolution in the UK is recognised country wide

By Family Department | Published: May 21,2012

In the UK, same-sex partners who have entered into a civil-partnership and then suffer relationship breakdown are able to end their union by means of civil-partnership dissolution, which, in legal terms, is akin to a divorce – complete with financial claim and parental orders (child custody in the US).

In America, however, issues of separation for gay couples are not necessarily so straightforward.

Certain states do not yet allow ‘gay marriage’ in any form, so many couples are forced to go to other states to have a ceremony. Yet, in a recent Court of Appeal decision in Maryland, although the state does not currently allow gay marriage, family court judges have ruled that a female couple who had to marry out-of-state, in California, can be divorced under Maryland laws.

The ruling stated: “A valid out-of-state same-sex marriage should be treated by Maryland courts as worthy of divorce, according to the applicable statues, reported cases, and court rules of this state.”

It would seem fair to say that ruling is logical considering that Maryland has already passed a law which will come into force in January 2013, to allow gay marriage. However, anti-gay-rights campaigners are attempting to bring about a repeal of the law if 56,000 signatures can be gathered by the end of June to force a referendum on the subject.

So, whether gay marriage becomes lawful in Maryland or not, family lawyers in the state could soon see an influx of gay-divorce cases from other states, such as Nebraska, Rhode Island, Pennsylvania and Texas, which don’t allow same-sex couples to dissolve a union in their state.

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Professional negligence and the 2010 tsunami

By Professional Negligence Department | Published: May 17,2012

In 2010 a post-earthquake tsunami struck the Chilean coast, killing at least 156 people. It was a tragedy, as so many natural disasters are. But, for prosecutors in Chile there is now a question that needs to be answered: Did the response of Chile’s National Emergency Office and it’s interior ministry to earthquake constitute professional negligence ?

For many, the answer is yes. Hundreds in at-risk areas received absolutely no warning of the impending wave.

As such, the charges are about more than mere professional negligence – the court will also look to consider the question of whether the actions of eight defendants constituted criminally negligent homicide.

Fragmentation and infighting has broken out between the defendants, many of whom blame each other for being responsible for the failures.

What is clear is that, even if the allegations of criminal negligence do fall down, some level of professional negligence did take place – only seven of the 80 parties who should have received warning did so.

The case is a complex one for the lawyers involved. Yet, however understandable the need for accountability, there are concerns that this same need could lead to rash prosecutions.

If the court case fails to give satisfaction, say most Chilean commentators, it is likely that civil professional negligence proceedings will follow.

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Early political defeat almost spelled divorce for Obamas

By Family Department | Published: May 16,2012

A new ‘unofficial’ biography of US President Barack Obama claims that his wife Michelle once sought the advice of a divorce lawyer and even had divorce papers drawn up following her husband’s first attempt to win a seat in the Senate.

The couple had been married for eight years at that point, and, so the book says, Mr Obama was depressed to the point that friends thought he may even be contemplating suicide.

The book – The Amateur – has been written by Edward Klein, former editor in chief of The New York Times Magazine and former foreign editor of Newsweek. Klein has also written controversial books on Hilary Clinton and the Kennedys.

Klein’s claims are not the first that the Obamas marriage has hit breaking point – in 2010 reports suggested their marriage was in difficulty, but the couple went on record as saying they had worked things out and become closer in the process.

According to Klein, after Barack Obama’s “humiliating defeat” in the 2000 race for seat in Chicago, he was financially ruined and many thought his political career was over. And his wife was, apparently, not sympathetic.

Michelle Obama had allegedly warned her husband that taking on “the formidable Bobby Rush” for the South Side seat was risky and she felt that her family had been put in an extremely difficult position financially as a result of the loss.

So, as many divorce lawyers will tell you, money worries are a force for divorce and it appears that prospective First Couples are no exception – still, it would seem that the First Lady is all smiles now, so we should think those early divorce papers have well and truly bitten the dust.

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Buyers not keen to seek a conveyancing solicitor in April to buy a property

By Residential Department | Published: May 12,2012

It has been reported that the number of newly agreed house sales fell during April, indicating that the end of the stamp duty holiday has discouraged first time buyers from beginning the residential conveyancing process.

The Royal Institution of Chartered Surveyors (RICS) has stated that 19% of surveyors have reported price falls as opposed to rises, and 17% believe that prices are set to drop further.

Peter Bolton King, RICS housing spokesman, said, “Renewed concerns over the economy and talk of a double-dip recession dominating the headlines in recent weeks may well have served to undermine consumer confidence.

“What’s more, the continuing lack of affordable mortgage finance is still hindering many first-time buyers who cannot afford to get a foot on the property ladder.”

Although the number of houses being put on the market is being described as “stable”, lenders and estate agents have expressed concerns that the end of stamp duty holiday meant that a number of house sales, which would have otherwise taken place over the year, were squeezed into March instead.

If you are searching for a property property conveyancing solicitor in London or elsewhere in the UK, Healys may be able to help you.

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UCIS professional negligence a hot topic

By Professional Negligence Department | Published: May 9,2012

Unregulated collective investment schemes (UCIS) have been a source of controversy for some time, with many investors allegedly becoming the victims of financial advisor professional negligence – advisors secretly benefiting from large commissions usually being the chief complaint.

One problem with such alleged financial advisor professional negligence is that investors, having trusted in the expertise of a professional, are often unaware of the full and often dubious nature of their investment.

The Financial Services Authority has warned us about UCIS negligence before, primarily mis-selling and mis-promotion, both of which can lead to investors taking risks they otherwise would have sought to avoid.

It would be easy to underestimate just how big an impact misrepresented financial advice and services can have on people’s lives. Often it is a question of life-savings, retirement funds or inheritance plans being at stake.

Although the FSA say that generally they would not recommend a UCIS for investors, some would say that the schemes have their place. One investment specialist comments, “UCIS funds can provide proper diversification within a client’s portfolio as long as the correct procedures are adhered to and can play a role as equally important as regulated funds.”

Yes, “correct procedure” is the key, and for all those unscrupulous UCIS providers it is also worth remembering that financial advisor professional negligence schemes have their place too – there can be consequences.

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