This case concerns our Client’s successful professional negligence claim against a lawyer. It is a cautionary tale of the consequences of failing to follow a client’s instructions. Whilst the case concerns lawyers, it applies to professional advisers of any specialism.
In this case, the Court ruled in our Client’s favour, finding that the said lawyer owes both a contractual and tortious duty of care to our Client and decided that the said lawyer was liable to compensate our Client for the loss caused by his negligence and breach of duty of care. The Learned Judge further awarded General Damages, Exemplary and Punitive Damages with interest at 5% per annum on the judgment sums from the decision date until full settlement and costs to our Client.
The lawyer has appealed further against the decision of this court.
Case Background
Our Client, a Chartered Accountant and Malaysian citizen residing in the Netherlands, became involved in a legal dispute with a Kuala Lumpur-based company in 2020. To defend her in this civil suit, she engaged the services of the lawyer in question. Unfortunately, due to the lawyer’s mismanagement, our Client’s instructions were not followed, court mentions were missed, and the Court’s directions were ignored, resulting in a judgment entered against our Client for her “purported disobedience” to the Court’s instructions.
What makes this case particularly egregious is that our Client was not informed of the judgment that had been entered against her. Despite her efforts to obtain updates on her case, she received no response, leading her to believe the case was still ongoing. It wasn’t until the following year that our Client discovered she had lost by default—when her bank informed her that her account had been garnished and all funds seized by the opposing party. As a direct result of this professional negligence, our Client lost the opportunity to defend a claim with strong prospects of success, suffered financial losses, and endured damage to her credit rating.
How to Prove Professional Negligence?
To successfully claim professional negligence, three key elements must be established:
Duty of Care: A duty of care is typically established when a lawyer is instructed to act on a client’s behalf. This is often outlined in the retainer or terms of service, which define the agreed scope of work.
Breach of Duty: A lawyer is deemed to have breached their duty of care if their actions fall below the accepted standard. This can include failure to follow instructions, attend court, or comply with court orders.
Causation and Financial Loss: The claimant must demonstrate that the breach of duty directly caused financial loss. This is often assessed using the “but for” test—whether the loss would have occurred “but for” the lawyer’s negligence.
Quantifying the loss can be straightforward or may require detailed forensic analysis, depending on the circumstances. Additionally, it is important that the claimant has taken reasonable steps to mitigate their losses; damages cannot be recovered for losses that could have been avoided or are considered unreasonable.
Appeal and Final Judgment
The lawyer appealed the decision to the High Court of Shah Alam but was ultimately unsuccessful. The High Court affirmed the original judgment, solidifying our Client’s victory and the accountability of the negligent lawyer.
Speak to Us
If you believe you have a claim against a professional and are seeking expert legal advice, please contact us at +603 6419 9511 or email info@chernco.com.my. Our team will assess your case with the attention it deserves.
Note: This article is for informational purposes only and does not constitute legal advice. For more information, please reach out to our office.