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Solicitor - duty to other side |
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What is the extent of the duty you owe to the other side during
negotiations? The starting point is that solicitors must ‘be scrupulously
fair and not take advantage of obvious mistakes’ (Ernst & Young [1996]).
In one case, solicitors were involved in settlement negotiations. The
claimant’s solicitor sent a fax to the other side offering to accept the
money in court, subject to certain conditions. But, problems with the
defendant’s fax system meant that the fax was never received. Shortly
afterwards, the defendant phoned the claimant to put forward an
increased offer, which the claimant then accepted. The issue to be
decided was whether the claimant should have told the defendant about
the fax that had been sent. The court held that there was no such duty.
The claimant was entitled to stay silent since that was in the client’s
best interests. However, if the claimant had been asked a specific
question by the defendant (ie whether the money in court was accepted)
then there would have been a duty to say that it had been. Needless to
say, all such cases are judged on their own facts, with the courts trying
to ensure that the parties are on an equal footing. This case (Adams
[2006]) was recently approved in Thompson v Arnold [2007] where the
court confirmed that there is no general duty to draw mistakes to the
attention of the other side. Source: Barlow Lyde & Gilbert. © Practical Lawyer
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April 2008 |