We recently acted for a client in a professional negligence claim against their former solicitor, securing a successful settlement and helping the client recover a significant proportion of their losses. The matter is a useful reminder of a point that is sometimes underestimated: settlement agreements must be drafted with precision, and ambiguity can be expensive.
Background: Settlement Discussions and a Key Concern
The underlying dispute involved ongoing settlement negotiations. As part of the process, a proposed settlement agreement was circulated for approval. Our client carefully reviewed the draft and raised concerns about the wording of several provisions. In particular, they highlighted that certain terms were unclear and could lead to uncertainty about what had been agreed and how the agreement would operate in practice.
Our client requested that the solicitor revise the drafting to tighten the language and remove ambiguity. Clear settlement terms are not simply a matter of style they are essential to ensure the agreement is enforceable and to reduce the risk of future disputes.
Unfortunately, the solicitor refused to amend the wording.
The Consequence: Ambiguity That Proved Costly
That refusal had serious consequences. When the agreement later came under scrutiny, the court found the settlement to be void due to ambiguity. In effect, the lack of clarity meant the agreement could not be relied upon as a binding resolution of the dispute.
As a result, our client was left exposed to substantial legal costs and procedural fallout, costs that could likely have been avoided with careful drafting and appropriate professional input at the time the settlement agreement was being finalised.
Taking Action: A Letter of Claim for Professional Negligence
Following the court’s decision, we moved quickly. We prepared and issued a detailed letter of claim against the former solicitor, setting out:
- the drafting issues and the concerns raised at the time
- the solicitor’s refusal to address those concerns
- how the ambiguity affected enforceability
- the losses incurred as a direct result
The claim was resolved shortly thereafter by way of settlement, achieving a positive result for our client and enabling them to recover a substantial portion of the losses they had sustained.
Key Takeaways
This case highlights several important lessons for clients and professionals alike:
- Settlement agreements must be clear and enforceable. If key provisions are ambiguous, the agreement may not achieve its purpose—and in the worst cases may be found void.
- Legal drafting is risk management. Precision reduces the scope for disputes, avoids unnecessary litigation, and protects clients from avoidable cost exposure.
- Raising concerns early matters. If you flag a problem and it is not addressed, it may be important evidence later when assessing whether professional standards were met.
- Prompt action can improve outcomes. Professional negligence claims are often fact-sensitive and time-critical. Moving decisively can help preserve evidence and position a claim for early resolution.
Concerned You May Have a Claim?
If you believe you may have suffered loss due to poor legal advice, errors in drafting, missed deadlines, or mishandled litigation, our team can provide clear, practical guidance on your options. We will review the circumstances carefully, explain the strengths and risks, and support you throughout the process—from early assessment through to resolution.
If you would like to discuss a potential professional negligence claim, please get in touch.
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