Professional Documents
Culture Documents
NOIDA
By,
Rohit Dhankhar A3211113062
Vashistha Vibhuti Parashar A321113026
Anrag Kundlia A3211113001
To,
Ms. Mahima Bhardwaj
TABLE OF CONTENTS
1. Introduction
2. Contractual Liability of Lawyers
3. Exclusion of Lawyer’s Liability by Agreement
4. Tortious liability of lawyers
5. Avoidance of liability for negligence by lawyers
6. Remedies for deficiency in legal services
7. Critical Evaluation
Bibliography
INTRODUCTION
Professional liability for negligence is a cryptic branch of the law relating to negligence. It exists on a
fundamentally different plane. There is a fine distinction between professions and other occupations
for the reason that professionals operate in spheres where success depends upon factors beyond
the professional man’s control.
The position has come to be established that the professional man owes to his client a duty in tort as
well as in contract to exercise reasonable care in giving advice or performing services. In the event of
their failure to exercise reasonable skill and care, they can be sued for negligence.
This paper attempts to analyse the application of the above law to advocates and how the fallouts
adversely affect the criminal administration of justice.
It is important, at the outset, to make a distinction between civil and criminal proceedings.
Lawyers like doctors practice a learned profession. As one learned in the law, they render
professional services to their clients with respect to both litigious and non-litigious matters. They
ought to render services in conformity with prescribed standards. Failure in this regard gives rise to
liability.
A lawyer when renders services with respect to litigious matters owes a primary duty of assisting the
court in the administration of justice. It supersedes the duty he owes to the client. Therefore his
liability for deficiency in service must be determined without ignoring such primary duty. Apart from
that a lawyer can invoke certain defences to claim exoneration from liability. Like doctors the liability
of lawyers can be based either on contract or on tort law. However cases decided under civil law for
negligence of lawyers are very few in India. In consumer courts also only limited number of
complaints are filed. Hence the position of lawyers’ liability is examined mainly in the light of cases
decided by courts in other jurisdictions. Wherever Indian decisions are available, they are also
incorporated in the study.
Contractual Liability of Lawyers
The extent of lawyer’s obligation towards his client for the breach of contract depends upon
the terms of the contract. ‘Generally a lawyer is retained to render services on legal matters.
Obligation with respect to business matters can also arise if the lawyer accepts such
unequivocal instructions by the client. It follows that nothing prevents a lawyer from
contracting to render advice on a business question.
Some obligations of lawyers have to be discharged within the strict time limits imposed by
the circumstances of the client. It gives an inference that in such a situation time is the
essence of the retainer. Any failure to discharge the contractual obligation within the
stipulated time attracts liability.
The first plaintiff instructed the lawyers to transfer two farms to a trust with the object of
reducing the estate duty on her death. The Inland Revenue Authority agreed for a particular
valuation provided the transfers were effected before a specified date. But the lawyers failed
to effect the transfer within the stipulated time. As a result the valuation increased. The court
held that there was a breach of contract on the part of the lawyers.
At times a client seeks advice of a lawyer on a future transaction in advance. If the advice is
tendered, the duty ceases. No duty is imposed on a lawyer to remind the client’s memory or
repeat the advice, unless he is requested to do so and he has accepted it unqualifiedly. There
is an implied obligation on every lawyer to be skilful and careful. Under the U.S. law this
obligation is assessed through the negligence standard.
A lawyer can terminate the retainer for justifiable causes. If he gives reasonable notice, he
will not incur any liability. But unjustifiable termination attracts liability. A client can also
terminate the retainer if a lawyer fails to discharge his obligations. On such an eventuality a
lawyer has to be blamed for the termination of the relation and accordingly he will be held
liable.
Exclusion of Lawyer’s Liability by Agreement
A question arises whether a lawyer can exclude or restrict his liability through exclusion
clauses. Divergent legal positions exist in various jurisdictions. In some jurisdictions such
agreements eliminating or limiting liability are declared as void. Some jurisdictions allow
exclusion of liability for minor negligence. But exclusion is not allowed for gross negligence
or deliberate default. Some countries allow reasonable limitations on liability up to the
amount of insurance, though such agreement is seen as inconsistent with the professional
duties of a solicitor.
English law recognises exclusion clauses provided a lawyer ensures that (a) an express
contractual term is incorporated into the retainer (bi) if a notice is relied upon, client’s
attention is drawn to it before execution of the retainer (c) the words used are sufficiently
clear. But the reasonableness of such clauses are subjected to judicial scrutiny if any dispute
arises.
Tortious liability of lawyers
The liability of a lawyer arises independent of a contract. In tort liability is mainly based on
professional negligence. A lawyer is bound to exercise such care and skill which is expected
from a reasonably competent lawyer. Accordingly a lawyer is not under an obligation to
know all the laws.
“No attorney is bound to know all the law. God forbid that it should be imagined that an
attorney or a counsel or even a judge is bound to know all the law”. But he is bound to know
certain statutes and laws that a reasonably competent and knowledgeable lawyer ought to
have known.
A client instructed the lawyer to initiate an action against the local authority for personal
injury. He omitted to do so within the period of limitation prescribed by the Public
Authorities Protection Act, 1893. It was held that he was negligent for not initiating the
action within the period of limitation and bound to pay compensation to the client.
It follows that a lawyer is held liable for the consequences of ignorance or non-observance of
the procedural laws and rules of practice pertaining to his department of profession.” A
lawyer may be in fact ignorant of a point of law. But he should take step to inform himself of
it. He ought to know generally, where and how to find the law concerning his sphere of
practice. Unless it is shown that the circumstances are such that would have alerted a
reasonably competent practitioner to make research on a particular point involved, his
conduct cannot be considered as one falling below the standard of a reasonably competent
practitioner
Lawyers failed to appreciate that an option was a clog on the equity of redemption. This
topic was dealt in all the text books on real property. The court held that the facts of the case
were such that they would not have alerted any average lawyer to the necessity of referring to
a text book on that point. There is an exception to the above rule. If a lawyer holds himself
out as a specialist in a particular field of law, a client can expect a higher standard than that of
a reasonably competent lawyer.
Giving wrong advice
A lawyer in the course of representing the client may gather a bulk of information which all
are not relevant to his engagement. An obligation is imposed on a lawyer to locate matters,
which are important to the client and to bring them to his notice.
A lawyer is bound to inform the progress of the transactions, which he is handling on behalf
of the client. In addition to informing the progress, wherever expedient, he shall seek further
instructions from the client.
In, Stinchcombe &. Cooper Ltd. v. Addison. Cooper, Jessen & Co.
The lawyers were acting for the purchasers of land from the local authority. The contract
provided that the local authority was entitled to set aside the contract if the purchasers did not
commence building on the land within twelve months. At the time of exchange of contracts
the purchasers were not informed of this condition. On expiry of 12 months the local
authority set aside the contract. The purchasers sustained loss. The lapse on the part of the
lawyers was held to be negligent.
Sometimes failure to inform the progress of the transaction may expose the client to criminal
liability.
In adverserial system of administration of justice the parties disputing a cause are placed in
rival camps attacking each other’s weakness to win the claim. They hire the services of
lawyers. A duty is imposed on the latter to conduct the litigation with reasonable care and
skill. In the following circumstances their conduct amounts to breach of duty.
The liability imposed on a lawyer is not absolute and strict. He is allowed to avoid the
liability on several grounds.
a) Contributory negligence
Where the client’s contributory negligence is the real cause of harm, a solicitor cannot be
held liable. If the client is an educated person and is able to understand the contents of a
settlement deed solicitor will not be held liable for negligence. But if an illiterate person
relying on the advice of the attorney puts his thumb impression or an uneducated person
signs the document the question of contributory negligence does not arise. If the
document consists of legal technicalities, it is doubtful whether an educated person, even
though he reads the document, he will understand the contents. There he relies more on
the advice of his attorney. In this context the test of reasonable client shall be applied to
ascertain whether he ought to have understood the contents. Accordingly the plea of
contributory negligence becomes relevant.
b) Error of judgement
Error of judgement either in matters of law or fact do not constitute negligence. Thus a
lawyer may err in interpreting doubtful and difficult areas of law in spite of reasonable
care.
In, Lucas v. Hamm.
A lawyer drafted a will. The bequest made in the will became void, as it hit the rule
against perpetuities and the intended beneficiary was deprived of the bequest. The court
of first instance held the lawyer negligent on the ground that even though the law against
perpetuities was difficult, a general practitioner in law could and should tum to the expert
when faced with a problem beyond his capabilities.
On appeal the decision was set aside for the reason that a lawyer of ordinary skill acting
under the same circumstances might failed to recognise the danger.
It is true that there are legal concepts which are most confusing and difficult. A general
practitioner should make reasonable efforts to find out the law. If it is beyond his
competency, he shall take advice of a specialist in that area, and consult texts and
commentaries on the subject. So long as a practitioner does this the question of liability
does not arise. Construction of a law and ignorance are two different concepts. A lawyer
should be held liable only where the error is a result of negligence in not undertaking
reasonable efforts.” The object of law in imposing civil liability is to improve the quality
of legal services and to create professional competence.
c) Practical advice
Often a lawyer is called to give practical advice. The nature of such advice is that legal
considerations constitute only a part of such advice. In such a situation the advice so
tendered is not substantially of legal nature. Hence it is not likely to consider any mistake
as negligence. If the advice given is plainly wrong then the lawyer will be held liable.
In, Bryant v. Goodrich.
A lawyer was held liable for wrongly advising a client to leave the matrimonial home
after her marriage broke down.
Remedies for deficiency in legal services
Measure of damages:
The fundamental principle governing the measure of damages is to place the client in the
same position in which he would have been, had the lawyer discharged his duty. The
courts are called upon to speculate as to what would have happened had the lawyer
discharged his duties properly.
The measure of damages depends upon the nature of loss. The damages for loss of
opportunity to acquire or renew an interest in the property is usually quantified by the
difference between the values of the property which the client intended to purchase minus
the price for which he would have bought it. In the case of diminution in value of
property the normal measure of damages is the difference between the price paid by the
client and the actual value of the property on the date of purchase. In the case of loss of
opportunity due to failure to bring the suit with in the limitation period, it is difficult to
decide whether the plaintiff would have won the case. Hence the courts allow recovery of
actual loss only.
If due to the negligence of the lawyer, a client is unable to recoup a loan, he is allowed to
recoup from the former. Similarly if a client is forced to sell his property for a lesser price
owing to the negligence of the lawyer, he is entitled to recover the difference between
what he would have received under normal circumstances and what he has actually
received. For loss of earning, a lawyer is not held liable generally. But an unusual case
may attract liability.
The client is allowed to recover the cost of rectification where a lawyer’s mistake can be
rectified.
At times the transaction of a client may become abortive as a result of his lawyer’s
negligence. In that case he is entitled to recover the whole of the expenditure except the
anticipated gains from the transaction. He has to opt either the wasted expenditure or
anticipated gains to avoid double compensation. He can also recover damages for the
physical inconvenience, discomfort and distress caused by negligence of his lawyer.
Liability for deficiency in legal services: A critical evaluation:
Lawyers render legal services to the needy. Because of the complexity of law a layman is
not in a position to understand them. Since ignorance of law is not excused people hire
legal services.
A lawyer like any other professional is accountable for deficient service. The contractual
liability depends upon the terms of the contract, of which the obligation to exercise
reasonable care and skill is implied one. The breach of such obligation or standard
resulting in failure to discharge the duties specifically contemplated in the retainer attracts
liability. The law does not expect a lawyer to give guarantee of success in a litigation. If
he contracts so, notwithstanding that he has exercised reasonable care, he attracts liability
for breach of contract.
The liability of a lawyer arises independent of contract, under tort law. Here also the duty
is to exercise reasonable care and skill. The standard of care expected is that of a
reasonably competent lawyer. As legal profession is not stratified one, it does not set
different standards on the basis of experience of a lawyers. It is immaterial whether a
lawyer is a beginner or one having a very long experience in the bar. But it appears where
a lawyer holds himself out as a specialist a higher standard is expected.
A lawyer is supposed to know the laws concerning his sphere of practice. He should
know the legal provisions, which are frequently referred.
A lawyer who acts without consent of the client, attracts liability for fraud or
misrepresentation as the case may be. It is an absolute requirement. In case of minors and
mentally incompetent persons their guardians consent shall be obtained. Usually consent
is inferred from the retainer.
The requirement of informed consent is recognised in the practice of law also. Such
requirement is wider and strict. A lawyer is not exposed to any constraints and tension
like a doctor. Accordingly he cannot claim the exceptions contemplated in the case of a
doctor. The information disclosed by him will not expose the client to any physical or
psychological harm. It follows that a lawyer shall divulge all information that a prudent
client would expect from him.
Generally lawyer is liable only to his clients. In certain cases persons who are directly
injured by his acts or omissions can also bring an action against him. Many questions
relating to third party liability frequently arise in connection with carelessly drafted wills.
A lawyer’s liability to the disappointed beneficiary is recognised in many jurisdictions.
Law does not allow a lawyer to contract out liability for negligence. The prohibition
against contracting out protects the clients from unscrupulous lawyers. But a total
prohibition is not needed to protect the interests of clients. Therefore it is submitted that
the parties shall be given the freedom of limiting liability at a reasonable level. The courts
can review the limitation clauses, to see that they are reasonable.
The liability of a lawyer must be examined in the light of his primary duty towards the
court. He is expected to assist the court in administering justice in an impartial way. If a
lawyer does any act in pursuance of the above duty he cannot be subjected to liability.
The study reveals that the civil liability of lawyers and doctors is almost identical. The
basis of obligation, nature of liability and duties to the client exhibit close similarity