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Buachaill, Barrister
Category: Law
Satisfied Customers: 13383
Experience:  Barrister 17 years experience
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Is a solicitor liable to the partners for an increased PI

Customer Question

Is a solicitor liable to the partners for an increased PI premium where the increase in premium is due to the solicitors negligence and the PI policy paid out
JA: Where is this? It matters because laws vary by location.
Customer: England
JA: What steps have been taken so far?
Customer: a solicitor ob=verlooked the requirement to serve a pre-emption notice on the tenants in a building as a result iof which the tenants were able to buy the freehold at a subatantially reduced priceThe claim was the fidfference between that price and the Notice price
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: the landlord wished to transfer the freehold to an associated company at a reduced price overlooking the right ti]o buy notice which should havebeen served on the tennats enabling the tennats to purchase at the reduced price. ThPI policy paid put but increased the premium for future years . Is the siolicitor liable to the partners ofv the firm for any increase in the premkium
Submitted: 16 days ago.
Category: Law
Expert:  Buachaill replied 16 days ago.

Hello, and thank you for your question. I am your Expert and I will provide the answer you require.

Expert:  Buachaill replied 16 days ago.

1.  All the solicitors who are partners in a firm of solicitors are jointly and severally liable for all debts of the partnership.  Where the PI cover is increased owing to a claim for negligence of one solicitor, then the partners remain liable, jointly and severally, for this increased Professional Indemnity Insurance premium.  Unless, there is specific provision in the partnership agreement that one solicitor is liable in the event of a claim against that solicitor for the increased premium, the PII COVER still remains a joint debt of the firm.  There has to be a specific provision for the negligent solicitor to be liable to the other partners for the increase in premium.  In the normal event, all the partners remain jointly liable for this increase in premium.

Expert:  Buachaill replied 16 days ago.

2. If you require any clarification or if there is additional information you wish to share, I will be happy to assist further in the resolution of your question.

Customer: replied 16 days ago.
Expert:  Buachaill replied 16 days ago.

3.  If the solicitor is not  a partner but a consultant, then this analysis is not correct.  Instead the consultant can be made liable for the additional Professional Insurance Indemnity premium if it is a term of his employment contract.  So long as the partners wish to hold him liable, they can do so, as his continued employment there depends upon it.