Solicitors’ failure to advise on a secured loan

Our client engaged solicitors to advise him in relation to providing a substantial secured loan to another party. The solicitors failed to advise our client that the loan was incapable of being secured without seeking the consent of a prior charge holder. Our client’s charge to secure his loan was therefore ineffective and subsequently our client lost the entirety of his loan which would otherwise have been repaid.

The solicitors admitted breaching their duty to our client but denied that it had caused the loss claimed by our client. We negotiated a favourable settlement for our client at mediation, without the need to issue court proceedings.