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21 May 2009 / Allan Reason , Ben Fairhead
Issue: 7370 / Categories: Features , Costs , Commercial
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Don't get wasted!

Allan Reason & Ben Fairhead highlight the dangers of acting without requisite authority

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The need to ensure that a corporate client provides proper authority to a firm of solicitors to act in proceedings is a point that can be easily overlooked, despite it being of crucial importance. A recent application for costs serves as a powerful illustration of what can happen when a firm acts without establishing the existence of that authority.

Recent scenario

The story starts in 2001 when a company (Company JV), until that point controlled exclusively by an individual (Mr K) at board and shareholder level, became a joint venture company. This followed the sale by one of the other companies controlled by Mr K (Company A) of its shareholding in Company JV to a separate company (Company B). Company B was a member of a different group of companies managed by a Mr D. Mr K and Mr D became the

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MOVERS & SHAKERS

Thackray Williams—Lucy Zhu

Thackray Williams—Lucy Zhu

Dual-qualified partner joins as head of commercial property department

Morgan Lewis—David A. McManus

Morgan Lewis—David A. McManus

Firm announces appointment of next chair

Burges Salmon—Rebecca Wilsker

Burges Salmon—Rebecca Wilsker

Director joins corporate team from the US

NEWS
What safeguards apply when trust corporations are appointed as deputy by the Court of Protection? 
Disputing parties are expected to take part in alternative dispute resolution (ADR), where this is suitable for their case. At what point, however, does refusing to participate cross the threshold of ‘unreasonable’ and attract adverse costs consequences?
When it comes to free legal advice, demand massively outweighs supply. 'Millions of people are excluded from access to justice as they don’t have anywhere to turn for free advice—or don’t know that they can ask for help,' Bhavini Bhatt, development director at the Access to Justice Foundation, writes in this week's NLJ
When an ex-couple is deciding who gets what in the divorce or civil partnership dissolution, when is it appropriate for a third party to intervene? David Burrows, NLJ columnist and solicitor advocate, considers this thorny issue in this week’s NLJ
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
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