Making an insolvency negligence claim
Specialist professional negligence solicitor, Emma Slade, takes a brief look at insolvency negligence, and claims against insolvency practitioners and insolvency lawyers.
Insolvency practitioners and other professionals involved in insolvency owe a legal duty of care in relation to their actions and advice and are required to act with reasonable skill and care.
For instance, they have an obligation to take reasonable steps to obtain the best price for assets that need to be realised. Other examples include errors that are made in relation to the distribution of assets, mistakes in preparing financial status reports, and failure to pursue legal claims.
When the duty of care is breached then the party suffering loss is entitled to bring a claim for compensation. However, the loss claimed must clearly flow directly from the insolvency practitioner’s breach, and not be due to some other cause outside the control of the professional.
It is often prudent to obtain an independent report from an expert witness on the conduct of the insolvency practitioner against whom the claim is being made.
Insolvency negligence claims should be commenced promptly. The primary limitation period is six years from when the cause of action accrued, or three years from the claimant’s date of knowledge. Identifying the limitation date isn’t always straightforward, so specialist legal advice should therefore be taken from independent lawyers.
We deal with insolvency negligence claims throughout the whole of England and Wales, both corporate and individual, where the financial loss arising from a breach of duty amounts to a sum that is greater than £25,000.
We will be happy to provide you with an assessment of your case free of charge, and to consider its suitability for no win, no fee funding. Call us on 0333 888 0403 or email details of your claim to us at [email protected]
