Phelps v Stewarts (a firm) & Anor [2007] EWHC 1561 (Ch) (02 July 2007)

Phelps v Stewarts (a firm) & Anor [2007] EWHC 1561 (Ch) (02 July 2007)

Ms Phelps' retainer was not limited to the initial interim payment; she was obliged to advise comprehensively, including on the tax consequences of all payments into the trust. She failed to discharge her duty, and Stewarts were not negligent nor responsible for any confusion. Ms Phelps is not entitled to a contribution from Stewarts.

Citation
[2007] EWHC 1561 (Ch)
Parties
Pt 20 Claimant: Rosemary Jane Catherine Phelps; Pt 20 Defendant: Stewarts (a firm); Pt 20 Defendant: Andrew Dinsmore
Jurisdiction
England and Wales
Judgment Date
02 July 2007
Procedural Posture
Part 20 Claim for Contribution Under Civil Liability (contribution) Act 1978 / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Scope of Solicitor's Retainer, Duty of Care, Inheritance Tax Liability, Contribution Between Tortfeasors
Professional Negligence Trusts Taxation Scope of Solicitor's Retainer Duty of Care Inheritance Tax Liability Contribution Between Tortfeasors

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Parties

Rosemary Jane Catherine Phelps

Pt 20 Claimant

Stewarts (a firm)

Pt 20 Defendant

Andrew Dinsmore

Pt 20 Defendant

Procedural Posture

Part 20 Claim for Contribution Under Civil Liability (contribution) Act 1978 / Judgment After Trial

Legal Issues

  1. 1 Was Ms Phelps' retainer limited to advice and drafting for the initial interim payment or did it extend to all compensation payments?
  2. 2 Did Stewarts owe a duty to instruct Ms Phelps comprehensively and/or heed her advice regarding further payments?
  3. 3 Was Stewarts negligent in relation to payments into the trust and the resulting tax liability?

Ratio Decidendi

Ms Phelps' retainer was not limited to the initial interim payment; she was obliged to advise comprehensively, including on the tax consequences of all payments into the trust. She failed to discharge her duty, and Stewarts were not negligent nor responsible for any confusion. Ms Phelps is not entitled to a contribution from Stewarts.

Court Disposition

Claim dismissed

Orders

  • Ms Phelps' claim for contribution against Stewarts is dismissed
  • Application to amend pleadings refused