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ARTICLE · 11 JULY 2002

Negligence in Regulatory Investigations

United KingdomLitigation, Mediation & Arbitration
James George
James George
Will circumstances ever arise where a regulated person is able to succeed in a negligence claim against a regulator? This issue was recently considered in the case of Miller v Law Society (The Times, 3 June 2002), in the context of an allegedly negligent investigation of a solicitor’s practice.

The decision in Miller v Law Society

Mr Miller was a solicitor in sole practice. In August 1996, the Law Society appointed an investigating accountant to inspect Mr Miller’s accounts. The accountant reported that the books did not comply with the Solicitors Accounts Rules.

In October 1997, the Law Society intervened in Mr Miller’s practice, with the result that his funds were vested in the Society and his practising certificate suspended. Under the Solicitors Act 1974, Mr Miller had 8 days in which to give the Society 48 hours’ notice and then issue an application in the High Court to

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