Perry v. Raleys Solicitors, [2019] UKSC 5

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Brenda engaged a team of accountants to assist with restructuring her small business to maximize available tax advantages. They overlooked an important statutory relief that applied to the transfer of intangible assets, resulting in Brenda missing the deadline to claim a potentially valuable deduction. She asserts that, had she been informed of the relief, she would have promptly completed the necessary filings and received a substantial financial benefit. The accountants dispute whether Brenda genuinely would have pursued this relief and claim her alleged loss is purely speculative. Faced with a lawsuit for professional negligence, Brenda must demonstrate that her lost opportunity to secure the deduction was more than just a remote or hypothetical possibility.


Which of the following statements best reflects the burden Brenda must satisfy to recover damages for her alleged lost chance?

Introduction

The case of Perry v Raleys Solicitors [2019] UKSC 5 represents a significant development in the legal principles governing professional negligence claims, particularly in the context of lost chances. The UK Supreme Court addressed the burden placed on claimants to demonstrate that the lost opportunity was both real and substantial. This judgment clarified the application of the "loss of chance" doctrine, which allows claimants to recover damages for missed opportunities caused by professional negligence, provided they can establish that the chance was more than merely speculative.

The court emphasized that claimants must present sufficient evidence to prove, on the balance of probabilities, that the lost chance had a real and substantial value. This requirement ensures that claims are grounded in factual and evidential foundations, rather than hypothetical or speculative scenarios. The judgment also confirmed the distinction between causation and quantification of damages, highlighting the need for claimants to demonstrate a causal link between the professional's negligence and the lost opportunity.

This article examines the legal principles established in Perry v Raleys Solicitors, focusing on the burden of proof, the evidentiary requirements, and the implications for professional negligence claims. By analyzing the court's reasoning and its application of established case law, this discussion provides a comprehensive understanding of the judgment's significance in the field of tort law.

The Legal Framework of Lost Chance Claims

The doctrine of lost chance in professional negligence claims allows claimants to recover damages for opportunities that were lost due to the defendant's breach of duty. This principle is particularly relevant in cases where the claimant cannot prove with certainty that they would have achieved a specific outcome but can demonstrate that there was a real and substantial chance of doing so.

In Perry v Raleys Solicitors, the claimant alleged that the defendant solicitors had negligently failed to advise him about a potential claim for services rendered during his employment. The claimant argued that, had he been properly advised, he would have pursued a claim for compensation, resulting in a financial benefit. The court's task was to determine whether the claimant had lost a real and substantial chance of obtaining that benefit.

The judgment reaffirmed the principles established in Allied Maples Group Ltd v Simmons & Simmons [1995] 1 WLR 1602, which set out the framework for assessing lost chance claims. The court must consider two key questions: first, whether the claimant would have taken the necessary steps to pursue the opportunity, and second, whether those steps would have resulted in a favorable outcome. Both questions require the claimant to provide sufficient evidence to satisfy the burden of proof.

Burden of Proof in Lost Chance Claims

A central issue in Perry v Raleys Solicitors was the burden of proof placed on the claimant to establish that the lost chance was real and substantial. The court emphasized that claimants must demonstrate, on the balance of probabilities, that the opportunity had a measurable value. This requirement ensures that claims are not based on speculative or hypothetical scenarios.

The claimant in Perry argued that he would have pursued a claim for compensation had he been properly advised. However, the court found that the evidence presented was insufficient to establish a real and substantial chance of success. The claimant's assertions were deemed speculative, as they lacked the necessary factual and evidential support.

This aspect of the judgment highlights the importance of robust evidence in lost chance claims. Claimants must provide detailed and credible evidence to demonstrate both the existence of the opportunity and its potential value. The court's approach in Perry emphasizes the need for a rigorous assessment of the evidence, ensuring that claims are grounded in factual realities rather than mere possibilities.

Distinction Between Causation and Quantification

The judgment in Perry v Raleys Solicitors also clarified the distinction between causation and quantification in lost chance claims. Causation refers to the link between the defendant's negligence and the claimant's loss, while quantification involves assessing the value of the lost opportunity.

The court held that claimants must first establish causation by proving that the defendant's breach of duty caused the loss of a real and substantial chance. Once causation is established, the court must then quantify the value of the lost chance, taking into account the likelihood of the claimant achieving the desired outcome.

This distinction is important in ensuring that claims are assessed in a structured and logical manner. By separating the issues of causation and quantification, the court can avoid conflating the two and ensure that each is addressed on its own merits. This approach also provides clarity for claimants and defendants alike, as it sets out a clear framework for assessing lost chance claims.

Implications for Professional Negligence Claims

The judgment in Perry v Raleys Solicitors has significant implications for professional negligence claims, particularly those involving lost chances. The court's emphasis on the burden of proof and the need for robust evidence highlights the importance of thorough preparation and presentation of claims.

Claimants must ensure that they provide detailed and credible evidence to support their claims, demonstrating both the existence of the lost opportunity and its potential value. This requirement may increase the complexity and cost of pursuing such claims, as claimants will need to invest time and resources in gathering and presenting the necessary evidence.

For defendants, the judgment provides a degree of protection against speculative or unfounded claims. By requiring claimants to meet a high evidentiary standard, the court reduces the risk of defendants being held liable for losses that are not causally linked to their actions.

Conclusion

The judgment in Perry v Raleys Solicitors [2019] UKSC 5 represents a significant development in the legal principles governing lost chance claims in professional negligence cases. The court's emphasis on the burden of proof and the need for robust evidence ensures that claims are grounded in factual realities rather than speculative scenarios.

By clarifying the distinction between causation and quantification, the judgment provides a structured framework for assessing lost chance claims. This approach improves the clarity and predictability of the legal process, benefiting both claimants and defendants.

The principles established in Perry v Raleys Solicitors will continue to shape the development of professional negligence law, providing guidance for future cases involving lost chances. As such, this judgment represents a key reference point for legal practitioners and scholars in the field of tort law.

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Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal