Published on 30/01/2017
City firm Mishcon de Reya was found to be liable for breach of trust after its client was duped into buying a London property from a tenant posing as the owner.
Deputy High Court judge David Railton QC accepted that Mishcon had acted honestly and innocently in carrying out their role however he concluded that Mishcon had professional indemnity insurance to cover the loss suffered in full, and was in a better position than the client to face the consequences. The judge added the ‘only practical remedy’ open to the client was to target the City firm.
Safe Buyer Insurance from the Safe Buyer Scheme covers this scenario and would have paid out up to 120% of the purchase price to prevent the buyer taking Mishcon to court.
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Read the full article in the Law Society Gazette by visiting https://www.lawgazette.co.uk/practice/mishcons-1m-id-fraud-bill-sounds-alarm-bells-/5059582.article