NRD Property Ltd v Ewan & Co LLP [2026] EWHC 574 (Ch) (17 March 2026)

NRD Property Ltd v Ewan & Co LLP [2026] EWHC 574 (Ch) (17 March 2026)

The defendant solicitors acted in breach of trust by paying away client monies to third parties without authority and contrary to the purpose for which the funds were held. The defendant further breached its undertaking and/or agreement to pay SDLT from monies retained for that purpose, and failed to account for or...

Source-derived case information.

Citation
[2026] EWHC 574 (Ch)
Parties
Claimant: NRD Property Limited; Defendant: Ewan & Co LLP
Jurisdiction
England and Wales
Judgment Date
17 March 2026
Procedural Posture
Civil (chancery) / Final Judgment After Trial
Outcome
Claim allowed
Legal Topics
Breach of Trust by Solicitors, Breach of Retainer, Breach of Undertaking, Forgery of Documents, Failure to Account for Client Monies, Undertakings in Conveyancing, Solicitors' Accounts Rules Compliance
Trusts Professional Negligence Property Law Contract Law Breach of Trust by Solicitors Breach of Retainer Breach of Undertaking Forgery of Documents +3 more

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Parties

NRD Property Limited

Claimant

Ewan & Co LLP

Defendant

Procedural Posture

Civil (chancery) / Final Judgment After Trial

Legal Issues

  1. 1 Whether the defendant solicitors acted in breach of trust by misapplying client monies
  2. 2 Whether the defendant breached its retainer and/or undertaking to pay SDLT
  3. 3 Whether the defendant is liable for failing to account for and/or pay over monies held for the claimant

Ratio Decidendi

The defendant solicitors acted in breach of trust by paying away client monies to third parties without authority and contrary to the purpose for which the funds were held. The defendant further breached its undertaking and/or agreement to pay SDLT from monies retained for that purpose, and failed to account for or pay over the balance of funds due to the claimant. The defendant's defences of authorisation, course of dealing, and illegality were unsupported by evidence and rejected. The court found that key documents were forged and not properly witnessed, further undermining the defendant's position. The claimant is entitled to an account, payment of the outstanding sums, and damages or...

Court Disposition

Claim allowed

Orders

  • Defendant to account for and pay to the claimant the sum of £155,307 wrongfully paid away to third parties
  • Defendant to account for and pay to the claimant the sum of £42,000 retained for SDLT and not paid