Broker House Insurance Services Ltd v OJS Law

Broker House Insurance Services Ltd v OJS Law

The solicitors are liable only for the consequences of failing to obtain the consent of Nat West and for protecting the charge by agreed notice rather than by substantive registration. They are not liable for losses caused by the borrower's inability to repay or by falls in the value of the security. Special condition 2 did not clearly make the solicitor's authority to complete conditional on compliance.

Parties
Claimant: Broker House Insurance Services Limited; Defendant: OJS Law
Jurisdiction
England and Wales
Judgment Date
25 November 2010
Procedural Posture
Civil / Judgment on Preliminary Issue
Outcome
Solicitors liable only for losses attributable to failure to obtain consent and to register charge substantively, not for all losses from the transaction.
Legal Topics
Solicitor's Duties, Measure of Damages, Mortgage Lending, Authority to Complete, Land Registration
Professional Negligence Conveyancing Law Solicitor's Duties Measure of Damages Mortgage Lending Authority to Complete Land Registration

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Parties

Broker House Insurance Services Limited

Claimant

OJS Law

Defendant

Procedural Posture

Civil / Judgment on Preliminary Issue

Legal Issues

  1. 1 For what loss is a solicitor liable if he fails to carry out instructions when acting for a lender whose loan is to be secured by mortgage?
  2. 2 Does a failure to obtain consent of the first mortgagee and to register a charge substantively make the solicitor liable for all losses?
  3. 3 Did the instructions to the solicitor make authority to complete conditional on compliance with special condition 2?

Ratio Decidendi

The solicitors are liable only for the consequences of failing to obtain the consent of Nat West and for protecting the charge by agreed notice rather than by substantive registration. They are not liable for losses caused by the borrower's inability to repay or by falls in the value of the security. Special condition 2 did not clearly make the solicitor's authority to complete conditional on compliance.

Court Disposition

Solicitors liable only for losses attributable to failure to obtain consent and to register charge substantively, not for all losses from the transaction.