Sat06242017

Last updateTue, 24 Feb 2015 5pm

NEGLIGENCE: Claims, claims and more claims

02 June 2017  

Andrew Beck, Andrew Bennett and Gwendoline Davies assess the AIG Europe case and its implications for all those bringing, facing or insuring multiple claims against solicitors

AIG Europe Ltd v Woodman [2017] arose following the bringing of multiple solicitors’ negligence actions against AIG’s insured, a now-defunct law firm. The claims were issued by investors who had lost money under trusts covering two property schemes in Morocco and Turkey which had been developed by one of the firm’s clients. AIG argued that all of the claims were founded on the fact that the solicitors released monies too early or at all in respect of the two developments and therefore that they met the aggregation test, set out in clause 2.5 of the Law Society’s minimum terms and conditions for solicitors’ professional indemnity insurance (MTC), for claims arising from ‘similar acts or omissions in a series of related matters or transactions’. This was relevant because the insurer wished to rely on the aggregation clause to limit its liability.

Additional Info

  • Case(s) Referenced:

    AIG Europe Ltd v Woodman & ors [2016] EWCA Civ 367; [2017] UKSC 18

    Arnold v Britton & ors [2015] UKSC 36

    Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd & anor [2015] UKSC 72