Redbus LMDS Ltd. v Jeffrey Green and Russell (a firm) [2006] EWHC 2938 (Ch) (17 November 2006)

Redbus LMDS Ltd. v Jeffrey Green and Russell (a firm) [2006] EWHC 2938 (Ch) (17 November 2006)

JGR's negligent drafting was the effective cause of Redbus's loss because it enabled JRFL to take points in litigation that would not otherwise have arisen, resulting in substantial costs. The appropriate measure of damages is the amount of costs that would be awarded on a standard basis, not all solicitor-client costs. The costs of enforcement are also recoverable as consequential loss.

Citation
[2006] EWHC 2938 (Ch)
Parties
Claimant: Redbus LMDS Limited; Defendants: The Partners in the Firm Known as Jeffrey Green and Russell
Jurisdiction
England and Wales
Judgment Date
17 November 2006
Procedural Posture
Professional Negligence Claim / Judgment After Trial
Outcome
Claim allowed in part
Legal Topics
Solicitor's Negligence, Causation and Quantum of Damages, Company Deadlock, Costs Assessment, Rectification of Contract
Professional Negligence Company Law Contract Law Solicitor's Negligence Causation and Quantum of Damages Company Deadlock Costs Assessment Rectification of Contract

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Parties

Redbus LMDS Limited

Claimant

The Partners in the Firm Known as Jeffrey Green and Russell

Defendants

Procedural Posture

Professional Negligence Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the negligence of JGR in drafting the Licence Agreement was the effective cause of Redbus's loss
  2. 2 Whether Redbus is entitled to recover its costs incurred due to the negligent drafting, and on what basis those costs should be assessed

Ratio Decidendi

JGR's negligent drafting was the effective cause of Redbus's loss because it enabled JRFL to take points in litigation that would not otherwise have arisen, resulting in substantial costs. The appropriate measure of damages is the amount of costs that would be awarded on a standard basis, not all solicitor-client costs. The costs of enforcement are also recoverable as consequential loss.

Court Disposition

Claim allowed in part

Orders

  • JGR to pay Redbus damages assessed at £108,537.13 for costs attributable to the negligent drafting, calculated as 75% of 75% of £192,954.89.
  • JGR to pay Redbus's reasonable costs of enforcement (£3,111.35) as part of the damages.