Eversheds, an international law firm, is facing a professional negligence lawsuit over claims they mis-advised property development company JMH Acquisitions and caused them to lose money.
JMH is reportedly pursuing Eversheds for £200,000, an amount the company claims it lost when the law firm advised it on a new industrial property purchase in Bolton, near Manchester.
According to the claim, Eversheds failed to check and inform JMH on the existence of a public right of way on the property, which subsequently affected the value of it.
JMH are alleging that they only discovered the public footpath after Eversheds finished their work and the legal bills were paid. After seeing a sharp drop in value on the property, JMH claim they would never have gone ahead with the purchase has Eversheds given them all of the information about it. They are seeking £200,000 in compensation, as well as a full refund of all legal costs spent pursuing the complaint.
If Eversheds lose their case and are forced to pay up for their alleged mistake, the company’s professional indemnity insurance – if they have a policy – should cover the compensation payout as well as legal costs on both sides.