1) Requests for particulars of all pending or threatened claims are too wide and should not be answered. It is for the client to list the liabilities and make estimates, not the solicitor.

2) It is, however, reasonable for the auditor to ask the solicitor whether a provision in respect of a specific contingent liability is reasonable, and a solicitor answering such a request may qualify his answer in whatever way he may consider necessary and reasonable.

There remains an issue between the Law Society and the ICA as to whether the general question regarding contingent liabilities should be put by the auditors and, if so, whether a solicitor should answer it. The Law Society’s view is that the solicitor should not answer such a question. This is based on the potential liability for negligent misstatements, as well as the duties under Companies Act on the directors and auditors (none of which apply to solicitors), and that both directors and auditors can be given relief under s727 CA 1985 and s1157 CA 2006 for negligence (as from October 2008 – but no such protection is available for solicitors). © Practical Lawyer