BPE Solicitors and another v Hughes-Holland (Gabriel v Little)

March 22, 2017

The Supreme Court upheld the Court of Appeal’s decision in favour of BPE Solicitors in a landmark decision that awarded nil damages to a businessman who made a commercially unwise loan to his friend which would not have been made but for the solicitor’s negligence.

The Supreme Court held that where an adviser is not responsible for the decision on whether to enter into a transaction, they are only liable for the damages resulting from the fact that the information they provided negligently was not correct. This applies even where the correct information may have revealed an actual or potential fraud.

Mr Gabriel’s commercial misjudgement meant that even if the purpose of the loan had been correctly portrayed by BPE Solicitors, he would have suffered the same loss.

Read Imran Benson and Alicia Tew’s article here:

BPE Solicitors and another v Hughes-Holland (Gabriel v Little)