Issue:
8124
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Categories:
Features
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Profession
,
Risk management
,
Insurance / reinsurance
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Professional negligence
Law firm mergers can lead to expensive cases of mistaken identity, write Clare Hughes-Williams & James Gardiner
- Naming the wrong defendant in negligence claims—especially after law firm mergers—can lead to claims being struck out.
- Leggett v AIG clarified that liability doesn’t automatically transfer to successor firms unless there’s a clear novation agreement.
- Claimants must identify the correct liable entity before issuing proceedings, or risk losing valid claims entirely.
Pursuing a claim against the wrong defendant can often lead to an early strike-out of the claim. Mergers and changes to partnerships are common, and the newly merged entity will often trade under a similar name and be a successor practice from a professional indemnity perspective. But this does not mean that legal liability will rest with them. Some of the recent decisions relating to negligence claims against law firms have highlighted the risks and consequences for claimants who confuse insurance and legal liability.
When a claim form names the wrong defendant, the claim is liable
