Cherney & Ors v Neuman & Ors

Cherney & Ors v Neuman & Ors

All claims against the solicitors fail. The court found that the claimants, through their agents, were informed of or authorised the relevant transactions, or suffered no loss as a result of any breach. The settlement and indemnity arrangements between the claimants and Mr Neuman rendered any claim against the solicitors circular, and no compensable loss was established. The solicitors' conduct did not fall below the standard required, or any breach did not cause loss. The Part 20 claim for contribution also failed as there was no primary liability.

Parties
Claimants: Michael Cherney & Others; Defendants: Frank Neuman & Others; Third Party: Frank Neuman
Jurisdiction
England and Wales
Judgment Date
05 August 2011
Procedural Posture
Civil (professional Negligence, Breach of Fiduciary Duty, Breach of Trust) / Final Judgment
Outcome
All claims dismissed. No liability established against the solicitors or the third party.
Legal Topics
Solicitor's Duties, Breach of Trust, Breach of Fiduciary Duty, Authority of Agents, Contribution Proceedings, Conflict of Interest, Equitable Compensation
Professional Negligence Trust Law Fiduciary Duties Property Law Solicitor's Duties Breach of Trust Breach of Fiduciary Duty Authority of Agents +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 11
Sign in to unlock

Parties

Michael Cherney & Others

Claimants

Frank Neuman & Others

Defendants

Frank Neuman

Third Party

Procedural Posture

Civil (professional Negligence, Breach of Fiduciary Duty, Breach of Trust) / Final Judgment

Legal Issues

  1. 1 Whether the defendant solicitors breached their duties of care, fiduciary duty, or trust in relation to various property transactions for the claimants.
  2. 2 Whether the claimants suffered loss as a result of any such breaches.
  3. 3 Whether the defendant solicitors are liable to restore sums paid out of client accounts without authority.

Ratio Decidendi

All claims against the solicitors fail. The court found that the claimants, through their agents, were informed of or authorised the relevant transactions, or suffered no loss as a result of any breach. The settlement and indemnity arrangements between the claimants and Mr Neuman rendered any claim against the solicitors circular, and no compensable loss was established. The solicitors' conduct did not fall below the standard required, or any breach did not cause loss. The Part 20 claim for contribution also failed as there was no primary liability.

Court Disposition

All claims dismissed. No liability established against the solicitors or the third party.

Orders

  • The action against the Firm is dismissed.
  • The Firm’s Part 20 claim against Mr Neuman is dismissed.