For decades mortgage fraud has cost British financial institutions hundreds of millions of pounds every year however with the recent buy to let boom and the subsequent sudden, unexpected financial crisis, losses due to mortgage fraud have started to be felt by private individuals who have invested money on the advice of mortgage brokers, investment […]
In the case of accountants professional negligence it should be noted that general complaints about an accountant’s behaviour or poor service are not usually matters that give rise to legal action for damages in a court of law. These matters should be addressed to the relevant professional body which operate well controlled and structured complaints procedures:-
Certified Accountants – Association of Certified Chartered Accountants (ACCA).
Chartered Accountant – Institute of Chartered Accountants (ICA)
Breach of the Duty of Care
A typical accountancy professional negligence claim alleges that an accountant’s work has fallen below the established standard of care that is to be expected, which must be met to prevent an unreasonable risk of harm. There are four key elements to recovery of damages in a professional negligence claim :-
The claimant must show that the accountant had a duty of care to the claimant. The normal accountant/client relationship is usually sufficient to establish this duty of care.
The accountant must be proved to have breached that duty of care in such a way that amounts to negligence. The accountant must have behaved in a way that was unreasonable such that no other body of accountants would have deliberately behaved in that way
The claimant must be able to show actual loss or anticipated loss.
It must be proved that the loss was a direct result of the negligent behaviour.
Typically these matters are complex legal issues that cannot be won in a court of law without a team of experts working towards the same goal. Solicitors regularly call upon the services of expert forensic accountants whose primary job is to provide evidence to assist in the prosecution of accountants professional negligence claims. A forensic experts is able to provide evidence on liability as well as quantum and they are well able to deal with the assessment of standards of professional competence. In addition where it is possible to reconcile the issues without recourse to a court of law they are able to assist at various stages of a dispute and have experience of alternative dispute resolution, including mediation and settlement negotiation.
Professional negligence solicitors deal with compensation claims against solicitors, barristers, accountants, architects, surveyors, valuers, estate agents, banks, insurance brokers and financial advisers. Most claimant solicitors will enter into a no win no fee agreement once initial enquiries have been made and they believe that on the balance of probabilities the claim will succeed. They will need to be satisfied that there is a duty of care in existence, the scope of that duty and thereafter establish the quality of the advice and the anticipated level of compensation after investigating the issue of causation and whether or not there was mitigation of loss by the potential claimant. For More Information Visit: Contested probate solicitors