Solicitors who conduct litigation are usually mindful of their professional duties to their client and their obligations to the court. However, it is easy for them to lose sight of their additional duty to act in good faith towards the other party and its solicitors and that breaching this duty can give rise to disputes.
This article explores the problems that can arise with particular reference to the decisions in Thames Trains Ltd v Adams (2006) and The Law Society v Sephton & Co (2004).
Thames Trains Ltd v Adams (2006)
The parties sought to settle following an admission of liability. Thames had paid US$9.3million into court and, following a representation by Thames' solicitor, Mr Rae-Reeves, that no further monies were available, Mr Adams' solicitor, Ms Christian, sent a fax offering to accept the monies in court subject to certain conditions. However, an error in Mr Rae-Reeves' fax system meant that there was a delay in the fax reaching him.