Dreamvar v Mishcon de Reya appeal: Law Society seeks permission to intervene

Dreamvar v Mishcon de Reya appeal: Law Society seeks permission to intervene

The Law Society is looking to intervene in the forthcoming appeal of Dreamvar v Mishcon de Reya.

In a decision from the High Court last year, firm Mishcon de Reya was told it had to bear the losses of a client was tricked into purchasing a property. The ruling found that the breach of trust meant that the firm was liable.

Following a number of similar cases and in a climate of heightened risk, the decision caused a significant stir in the property industry, with the burden seeming to fall on the buyer’s solicitor.

In light of the fallout, Chancery Lane has decided to take action, seeking permission to intervene in the appeal case.

Commenting on the outcome of the case and questioning whether the loss should lie elsewhere was Joe Egan. The president of the Society stated: ‘The profession has high standards – particularly in conveyancing – and there are numerous regulatory requirements which are designed to make sure the risk of fraud is kept low,’ said Egan. ‘However, it is impossible to prevent all fraud. Fraudsters are becoming increasingly sophisticated and hard to detect. Fraud may occur, regrettably, even where solicitors on both sides have been scrupulous in complying with all due diligence requirements and best practice.

‘Where a solicitor has carried out his or her duties in full compliance with those requirements, we do not believe they should bear the loss on behalf of a defrauded purchaser.’

He went on to say that the case highlights the need to be alert to the signs of fraud in the buying and selling of residential property.

“We are always sympathetic to victims of heartless fraud.

“Every day new scams aimed at solicitors are created and we want to be proactive in our efforts to prevent fraud and reduce the risk it poses to law firms and their clients.

“Working with partners, including the National Cyber Security Centre, we are developing new cybersecurity and scam prevention resources for the legal sector. These will help firms detect early signs of fraud and block attempts to defraud clients and help the public understand how to keep protect themselves.”

The appeal is due to be heard in late February.

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