What is Professional Negligence?
Professional negligence arises when a company or an individual acting in the course of business, fails to carry out their professional duties with the standard of care and skill reasonably expected of a competent member of that profession and that failure causes loss to their client.
For example, in AssetCo plc v Grant Thornton UK LLP, an accountancy firm of auditors was ordered to pay the damages in the region of £22.36 million for failing to meet the standard of care expected of reasonably competent auditors.
The court found that the auditors failed to identify fraud and dishonest misrepresentations made by the company’s senior managers. As a result, the company’s financial position was incorrectly reported, and caused the company substantial losses. The auditors were therefore held liable for the losses flowing from those failures.
Who can a claim be brought against?
Professional negligence claims are most commonly brought against recognised professionals such as accountants, surveyors, architects, financial advisers. However, liability is not necessarily limited to those holding formal professional qualifications.
Claims may also arise against tradespeople and other service providers who hold themselves out as possessing specialist skills or expertise.
For example, a builder or contractor may face legal action where they use substandard materials, carry out defective works, or failing to undertake proper inspections. Similarly, a beautician causes or cosmetic practitioner may be liable where they fail to follow proper procedures or carry out appropriate checks which results in injury to a client, for example, by failing to carry out a patch test or check for contraindications, or leaving a treatment on for too long.
What Standard of Care Is Expected?
A “professional” does not necessarily need to hold formal professional qualifications for them to be required to meet a professional standard.
Where a company or an individual holds themselves out as has having a particular area of expertise, they will likely be judged by the standard of a reasonably competent person providing that service.
Case Example: Paul Wright v Troy Lucas & George Rusz
This principle was illustrated in Paul Wright v Troy Lucas & George Rusz, the defendant despite having no formal solicitor or barrister qualifications, held himself out as an “experienced legal professional” and took conduct of the claimant’s clinical negligence claim.
The court found that, in conducting the claim, he failed to meet the standard expected of a reasonably competent legal professional. As a result, the claimant lost the opportunity to pursue part of his claim and became responsible for significant costs. The defendant was therefore held responsible for the claimant’s losses.
The court found that, although the defendant had no formal solicitor or barrister qualifications, he had held himself out as an experienced legal professional. He was therefore held to the standard of a competent legal practitioner. As he breached that standard, he was found liable for the claimant’s losses.
Could You Have a Professional Negligence Claim?
You may have a claim in professional negligence if: –
- a professional or specialist service provider owed you a duty of care.
- they failed to exercise reasonable care and skill in carrying out their work.
- that failure caused loss, damage or injury; and
- you have suffered a quantifiable loss as a result.
Potential losses may include financial loss, property damage, personal injury or other recoverable losses, depending on the circumstances.
Every case is different, and the merits of a claim will depend on its particular facts.
Speak to O’Donnell Solicitors
To discuss the contents of this article or for any queries about professional negligence, you can talk to our specialist Dispute Resolution team in Oldham. Please contact Jackie Martin on 01457 761320 or send an email to Jackie.martin@odonnellsolicitors.co.uk.