Mehjoo v Harben Barker (A Firm) & Anor

Mehjoo v Harben Barker (A Firm) & Anor

The defendants' retainer and course of dealing imposed a duty to advise the claimant on tax planning, including referral to a non-dom specialist. The defendants breached this duty by failing to advise the claimant of his likely non-dom status and the need for specialist advice. Had proper advice been given, the claimant would have implemented BWP in time, lawfully avoided CGT, and not incurred the costs and interest claimed. The losses were foreseeable and within the scope of the defendants' duty. The claim was not statute-barred.

Parties
Claimant: Hossein Mehjoo; First Defendant: Harben Barker (A Firm); Second Defendant: Harben Barker Limited
Jurisdiction
England and Wales
Judgment Date
05 June 2013
Procedural Posture
Civil (professional Negligence) / High Court Judgment
Outcome
Judgment for the claimant
Legal Topics
Accountants' Duty of Care, Tax Planning Advice, Non Domicile Status, Referral to Specialist, Limitation Periods, Damages for Negligent Advice
Professional Negligence Tax Law Contract Law Tort Law Accountants' Duty of Care Tax Planning Advice Non Domicile Status Referral to Specialist +2 more

Case Brief

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Parties

Hossein Mehjoo

Claimant

Harben Barker (A Firm)

First Defendant

Harben Barker Limited

Second Defendant

Procedural Posture

Civil (professional Negligence) / High Court Judgment

Legal Issues

  1. 1 Whether the defendants owed a duty to advise the claimant on non-dom status and specialist referral without express request
  2. 2 Whether the defendants breached their duty by failing to refer the claimant to a non-dom specialist
  3. 3 Whether the claimant would have acted on such advice and avoided capital gains tax

Ratio Decidendi

The defendants' retainer and course of dealing imposed a duty to advise the claimant on tax planning, including referral to a non-dom specialist. The defendants breached this duty by failing to advise the claimant of his likely non-dom status and the need for specialist advice. Had proper advice been given, the claimant would have implemented BWP in time, lawfully avoided CGT, and not incurred the costs and interest claimed. The losses were foreseeable and within the scope of the defendants' duty. The claim was not statute-barred.

Court Disposition

Judgment for the claimant

Orders

  • Defendants to pay £763,658 in respect of CGT after credit for BWP costs
  • Defendants to pay £180,000 for the net cost of entry to the Montpelier scheme