Wright Hassall's Commercial Litigation team are acting for the company and director in a professional negligence case.
The company and shareholder/director instructed solicitors, DJM Law Limited, to assist on the sale of a company asset to the director/shareholder. The solicitors failed to advise on the potential conflict when acting for both the seller and purchaser, and the need for a shareholder resolution to approve the transaction.
Subsequently the other majority shareholder issued proceedings for unfair prejudice on the basis of the breach of section 190 of the Companies Act 2006. That claim compromised.
The company and director are now pursuing the former solicitors for exposing them to a risk they should not have i.e. the unfair prejudice petition. Proceedings were issued in June 2023. Mediation took place in January 2024, but the matter did not settle.
The case involves interesting issues over scope of duty, causation and quantum.
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