Our client was the leasehold owner of a
shop. His lease, which had the benefit of protection under
the Landlord and Tenant Act 1954, was due to expire in April
2006. Solicitors 'A' were instructed in October 2005 by the
client to extend the lease for a further five years. They failed to
comply with the deadline for service of the counter notice. The
client then had no choice but to enter into a lease which was less
advantageous as it excluded the protection of 1954 Act.
A letter of claim was sent to the solicitors. Liability was
admitted by the insurers for the solicitors, but they disputed
quantum. They made an offer of settlement for £24,000 to cover the
additional premium that the client paid and other losses, which was
increased to £26,500.
Our client instructed solicitors 'B' to deal
with the professional negligence claim and they advised
the client to accept the offer at £26,500. Our client felt his
claim was worth more and in December 2007 instructed us to take
over the matter. We conducted the case under a Conditional Fee
Agreement.
We obtained an expert valuation report which
stated that the value of the 1954 Act protection alone was worth in
excess of £35,000.
A further offer of £30,000 was made by the
insurer but they refused to accept that loss of the 1954 Act
protection had any value.
We obtained After Event Insurance and issued
proceedings. In March 2009, we finally settled for £52,500
plus costs.
Chun Truong
Dispute Resolution solicitor
Hodge Jones & Allen LLP