The economic downturn has led to some businesses becoming aware of problems which were not previously obvious, and in some cases questioning the quality of advice received years earlier. A recent case in the commercial court illustrates that it is vital to act quickly if you have suffered, or are likely to suffer, losses as a result of poor quality advice.
It dealt with the question of whether or not a claim for negligence was ‘out of time’. The normal time limit for bringing a claim is six years after the loss is suffered. The claimant argued that it had suffered the loss several years after receiving the allegedly negligent advice and that the time limit for making a claim ran from when the loss was crystallised. The defendant firm argued that the time limit must run from the time that the potential for loss was first discovered.
The defendant won – thereby avoiding a £20 million payout in compensation.
The moral of the story is that if you have relied on advice given which was negligent, you should take advice about bringing a claim as soon as you can see that a loss may occur: leaving it until the loss becomes actual, as opposed to latent, may cost you your right to claim.