Negligent ancillary relief advice

Burke v Chapman and Chubb [2008] EWHC 341 (QB)

During ancillary relief proceedings, the wife’s solicitors became aware of a letter from the Inland Revenue to her husband, which stated that arrangements were being made for a statutory demand to be served which might lead to the filing of a bankruptcy petition. The petition was filed, but the husband failed to mention it at the final hearing in the ancillary relief proceedings. The final order included a property adjustment order in favour of the wife, but the following month, a bankruptcy order was made against the husband, with the result that the ancillary relief order was incapable of being met. The wife sued her solicitors for negligence in not informing her of the husband’s impending bankruptcy and its effect on the claim for ancillary relief. She further contended that previous advice given to defer her application for a decree absolute until financial matters had been settled was wrong, and the solicitors should have advised her of additional steps that should have been taken to safeguard her position with respect to her claim. She maintained that failure to take those steps amounted to breach of duty, and resulted in a loss of the opportunity to obtain a final settlement.