Percy v White & Anor [2021] EWHC 22 (Ch) (12 January 2021)

Percy v White & Anor [2021] EWHC 22 (Ch) (12 January 2021)

Merriman White is entitled to contribution from Mr Mayall under the Civil Liability (Contribution) Act 1978 because the settlement with Mr Percy was bona fide and, assuming the factual basis of the claim, both MW and Mr Mayall would have been liable for the same damage. The reflective loss principle does not bar contribution in these circumstances. Mr Mayall was negligent in his advice regarding the derivative claim and failed to warn of the risks, contributing to the loss.

Citation
[2021] EWHC 22 (Ch)
Parties
Claimant: Richard Terence Percy; Defendant/additional Claimant: Merriman White; Defendant/additional Claimant: Raymond John Murphy; Additional Defendant: David Mayall
Jurisdiction
England and Wales
Judgment Date
12 January 2021
Procedural Posture
Contribution Claim Under Civil Liability (contribution) Act 1978 / Judgment After Trial
Outcome
Contribution claim allowed
Legal Topics
Derivative Actions, Reflective Loss, Solicitor and Barrister Negligence, Contribution Between Tortfeasors, Just and Equitable Winding Up
Professional Negligence Company Law Civil Procedure Derivative Actions Reflective Loss Solicitor and Barrister Negligence Contribution Between Tortfeasors Just and Equitable Winding Up

Case Brief

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Parties

Richard Terence Percy

Claimant

Merriman White

Defendant/additional Claimant

Raymond John Murphy

Defendant/additional Claimant

David Mayall

Additional Defendant

Procedural Posture

Contribution Claim Under Civil Liability (contribution) Act 1978 / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Mayall was negligent in his advice and conduct regarding the derivative claim and settlement advice
  2. 2 Whether Merriman White is entitled to contribution from Mr Mayall under the Civil Liability (Contribution) Act 1978
  3. 3 Whether the losses claimed by Mr Percy were reflective and thus irrecoverable

Ratio Decidendi

Merriman White is entitled to contribution from Mr Mayall under the Civil Liability (Contribution) Act 1978 because the settlement with Mr Percy was bona fide and, assuming the factual basis of the claim, both MW and Mr Mayall would have been liable for the same damage. The reflective loss principle does not bar contribution in these circumstances. Mr Mayall was negligent in his advice regarding the derivative claim and failed to warn of the risks, contributing to the loss.

Court Disposition

Contribution claim allowed

Orders

  • Mr Mayall to pay a contribution to Merriman White in respect of the settlement sum paid to Mr Percy
  • Costs order in favour of Merriman White