Stone Heritage Development Ltd and others V Davis Blank Furniss [electronic resource]

[2007] EWCA Civ 765, 24 July 2007. The appellant company (C) appealed against a decision that a loss they claimed was not caused by the negligence of their solicitors (D). A development agreement was made between C and the landowners (H). There was risk that the development would encroach onto adjacent local authority land, of which H was thought to have a possessory title. C instructed D that any problem would therefore be resolved by H's acquisition of this land. The local authority did complain of encroachment. H eventually acquired the land, and matters between C and H were concluded resulting in C's loss. C then made representation against D that they should have included a grant of rights between C and H that the development terms included any land that H might acquire. The judge accepted negligence on the part of D, but did not accept that this had caused C's loss. "Held": The conclusion of D's negligence had not been justified. D were not asked to advise on the commercial viability of the deal C negotiated with H. The limitations of C's instructions to D showed that D had not been in breach of their duty. Appeal dismissed.