Welcome to the 4 New Square Chambers’ Spring Recap; a collection of articles from our barristers with their insights into developments in professional liability, coverage and regulation.
One of the hot topics we’ve seen re-emerge in recent months has been loss of a chance. Perhaps the most controversial area where the courts had declined to apply the Allied Maples approach was in brokers’ negligence claims. Our article on Norman Hay Plc v Marsh Ltd [2025] EWHC Civ 58 looks at the Court of Appeal’s recent treatment of these causation principles. In particular it explains whether claimants have to prove as against their brokers that insurers would have paid out if a policy had been put in place, or whether it is enough to show that there was a real and substantial chance of this occurring.
Loss of a chance was also one of the core issues in Barrowfen Properties v Patel [2025] EWCA Civ 39. As our article explains, this claim against directors and solicitors explored the thorny issue of when credit has to be given for benefits as well as the proper approach to loss of a chance where there are cumulative counterfactuals.
Turning to fiduciary duties, in the landmark case of Rukhadze v Recovery Partners GP Ltd [2025] UKSC 10, the Supreme Court clarified when and why fiduciaries are liable to account for profits. We set out why “but for” causation has no role to play and explain that the core enquiry is whether the profits owed their existence to the fiduciary relationship.
The article on Solicitors’ Duties- Five Key Principles provides a helpful summary of the boundaries of solicitors’ duties and isolates some of the core touchstones and recent cases- including in relation to inexperienced and vulnerable clients, and “reasonably incidental” matters.
On the coverage front, Leggett & Ors v American International Group UK Ltd [2025] EWHC 278 involved insurers challenging not one but two prior decisions of the High Court in the same litigation. As our article sets out, the case concerns the perennial problem of successor practices- not only in the context of picking the right defendant but also understanding the insurance arrangements.
Finally, turning to solicitors’ regulation, we consider the importance of the recent High Court judgment in SRA v Dentons UK & Middle East LLP [2025] EWHC 353, which recognised a form of “strict liability” for such failures. We explain why money laundering has been such a tricky area for the SRA and solicitors alike, and how far the “strict liability” principle is likely to apply given legislative and regulatory changes. We also look ahead to the new fining regime for economic crime and the outcome of the SRA’s consultation.
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Norman Hay Plc (in Member’s Voluntary Liquidation) v Marsh Ltd
One of the hot topics we’ve seen re-emerge in recent months has been loss of a chance. Nicholas Broomfield and Diarmuid Laffan’s article on Norman Hay Plc v Marsh Ltd [2025] EWHC Civ 58 looks at the Court of Appeal’s recent treatment of causation principles in professional liability claims against insurance brokers.
Barrowfen Properties Limited v Patel
Loss of a chance was also one of the core issues in Barrowfen Properties v Patel [2025] EWCA Civ 39. As our article explains, this claim against a director and solicitors explored the thorny issue of when credit has to be given for benefits as well as the proper approach to loss of a chance where there are different counterfactuals in play.
Shail Patel KC and John Williams explain the operation of loss of a chance, and how credits are accounted for, in a claim brought by a development company against its former director and solicitors. 4 New Square Chambers’ Roger Stewart KC acted for the solicitor defendants in the Court of Appeal
The no-profit rule and but-for causation: Rukhadze v Recovery Partners GP Ltd
David Halpern KC offers his observations on the approach to the Supreme Court to the liability of fiduciaries to account for profits. He explains why the liability is strict, and what link is needed between the fiduciary duty and the profits.
Solicitors’ Duties: Five Key Principles
Melody Hadfield considers some of the core principles underpinning solicitors’ duties, including recent case law on what’s “reasonably incidental”, duties to advise on non-legal matters and dealing with inexperienced or vulnerable clients.
Leggett & Others v American International Group UK Limited
Amanda Savage KC and Ed Grigg explain what happened in the coverage dispute arising from the long running Giambrone litigation. They explain why the decision is a good reminder of the need to “pick your defendant” and explain how the insurer came to challenge not one but two prior High Court decisions in the same litigation. 4 New Square Chambers’ Carl Troman acted for the successful insurer.
What does SRA v Dentons tell us about the role of solicitors in preventing money laundering and what approach the SRA is now likely to take towards any shortcomings?
Helen Evans KC, Will Birch and Alex Forzani unpack the High Court’s decision on the interplay between the AML regime and solicitors’ misconduct in SRA v Dentons. They consider how worried solicitors should be about the spectre of “strict liability”, why such cases have run into trouble, and what lies in store in light of the SRA’s new powers to impose unlimited fines on firms and individuals for AML breaches.
