In a judgment handed down on 5th January 2026, the Court of Appeal dismissed a substantial professional negligence claim in Afan Valley v Lupton Fawcett. The claim, brought by 43 insolvent property companies against a firm of solicitors, related to the collapse of a series of hotel, care home, and student accommodation investment schemes.
The claimants argued that Lupton Fawcett’s advice had been negligent, exposing them to potential liabilities under the Financial Services and Markets Act 2000.
The Court of Appeal upheld the High Court’s April 2024 decision to strike out the claim, ruling that even if the firm’s advice had been negligent as the claimants alleged, they could not demonstrate any recoverable loss falling within the scope of the solicitors’ duty of care.
The judgment confirms the principle that solicitors’ liability is limited to losses sufficiently connected with the legal advice they have given, and that solicitors will generally not be held responsible for the commercial success or failure of complex investment schemes.
Daniel Saoul KC and Pippa Manby of 4 New Square Chambers represented Lupton Fawcett, instructed by Reynolds Porter Chamberlain.
The full judgment in Afan Valley v Lupton Fawcett can be viewed here.
