Limitation and Breach of Trust

  • FOIL

These proceedings were brought by former clients (the respondents) against solicitors (the appellants) who acted for them in the past. One of the partners stole money held in the firm's client account on behalf of the claimants. The other two partners were entirely innocent of, and in no way implicated in, the frauds. Some of the losses sued for arose from transactions more than six years before the commencement of the proceedings. The issue on the appeal was whether the innocent partners, who were otherwise undoubtedly liable for the clients' losses, could rely on a limitation defence in respect of those transactions, under S21 Limitation Act 1980.


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