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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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NEWS
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Fraud claims are surging, with England and Wales increasingly the forum of choice for global disputes. Writing in NLJ this week, Jon Felce of Cooke, Young & Keidan reports claims have risen sharply, with fraud now a major share of litigation and costing billions worldwide
Litigators digesting Mazur are being urged to tighten oversight and compliance. In his latest 'Insider' column for NLJ this week, Professor Dominic Regan of City Law School provides a cut out and keep guide to the ruling’s core test: whether an unauthorised individual is ‘in truth acting on behalf of the authorised individual’
Conflicting county court rulings have left landlords uncertain over whether they can force entry after tenants refuse access. In this week's NLJ, Edward Blakeney and Ashpen Rajah of Falcon Chambers outline a split: some judges permit it under CPR 70.2A, others insist only Parliament can authorise such powers
A wave of scandals has reignited debate over misconduct in public office, criticised as unclear and inconsistently applied. Writing in NLJ this week, Alice Lepeuple of WilmerHale says the offence’s ‘vagueness, overbreadth & inconsistent deployment’ have undermined confidence
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