Cyprus lawyer successfully sued for negligence.

[Cornholio]

Landmark Supreme Court ruling means lawyers can be sued for negligence
By Stefanos Evripidou
Published on April 24, 2010

THE SUPREME Court has ordered a Paphos-based lawyer to pay around €120,000 to his former clients, a British couple, in compensation for money lost over a property contract prepared over a decade ago.

It is believed to be the first time that a Cypriot lawyer has been found professionally negligent by the highest court in the land and made to compensate for the money lost by their client. This raises the prospect of more negligence cases being filed against lawyers in property cases, ringing alarm bells within the legal community. Until now, lawyers have largely avoided or directly refused to take on their colleagues in any negligence lawsuit in Cyprus.

To fight their negligence case, the British couple hired the legal services of father and son, Antonis and Nicholas Georghiades, who run a small firm in Nicosia, advising among other things on the acquisition of immoveable property in Cyprus.

According to the three-judge panel of the Supreme Court on Wednesday, the defendant, Paphos lawyer Nicos Papakleovoulou - their original legal adviser - was liable to compensate the couple for the money they lost as a result of his negligence.

In 1999, the British couple chose to sell their property in England and move permanently to Cyprus to buy and live in their “dream house”. In November that year, they decided to buy land in Kinousa village in Paphos from a contractor on which he agreed to build them a three-bedroom villa.

The couple went to the defendant Papakleovoulou to prepare the necessary contracts which were then signed. It later transpired that the property had been mortgaged twice, an interest had been registered on the property, while the contractor went bankrupt. The couple lost all the money they had invested in the property and the chances of getting any back from the contractor were minimal.

They decided to sue their lawyer for negligence in the Paphos district court and lost. They appealed to the Supreme Court, which ruled in favour of the claimants.

The top court ruled that “lawyers do not have immunity”, noting that a lawyer, like any professional, was judged based on the level of care and skill expected from the average professional. This level was “neither that of the very talented professional nor one who possesses limited qualities”.

The Supreme Court judges set out the basic duties of a lawyer when delivering their services outside of the courtroom. These include that the lawyer advises his client with care, brings to his attention any problems, any inherent dangers, warns him of them and protects his interests. Despite the fact there is no legal obligation to do so, prudent lawyers should also aim to receive all instructions in writing, especially in cases of immoveable property.

The appeals court highlighted that the main aim of any property case was to acquire the relevant title deed.

“In the case of purchasing land, the ultimate aim is to secure, either immediately or in a time agreed upon, the title deeds for his client,” said the ruling.

The judges noted that where there was no title deed that could be immediately transferred, as in this case, the lawyer’s duties become more complicated, requiring expert knowledge and actions, “which is why the majority of buyers of immoveable property correctly turn to lawyers from whom they expect protection of their interests”.

The court employed a textbook check list for lawyers working on property cases. “The first issue the lawyer is obliged to investigate is the legality of the title deed of the intended vendor and that there are no registered charges or other legal impediments which could affect in future the transfer to his client of a title free of any encumbrances.”

On top of the duty to check for any charges registered against a property, lawyers will now be judged in future lawsuits on whether they fulfilled their duty “to warn his client of the dangers emanating from the possible insolvency of the vendor”.

In this case, it was deemed that the defendant had not met his duties, showing professional negligence. As a result he was ordered to compensate his former clients in a manner that they found themselves in the same position they would be in had the lawyer fulfilled his duties.

The judges concluded that compensation amounted to the money the plaintiffs paid to the vendors, which they would not have paid had they received the correct legal advice, amounting to around €120,000, included in which was €2,152 charged by the lawyer for preparing the contracts.

Landmark Supreme Court ruling means lawyers can be sued for negligence - Cyprus Mail

 

[Cornholio]

Persistence pays off............

‘We paid a heavy price for victory’
By Stefanos Evripidou
Published on May 1, 2010

A BRITISH woman yesterday recounted how an 11-year pursuit of justice, which won her and her former partner a landmark Supreme Court ruling had ultimately cost the couple their relationship and his health.

The Supreme Court’s decision last week to award the couple Muriel Beaumont, 73, and Clifford Sims, 78, around €120,000 as a result of their lawyer’s negligence in a property case marked a first in Cyprus.

And although they are thrilled with the outcome, there has been a heavy personal cost.

On hearing the judgement, neither Beaumont nor Sims could believe that justice had been served. “We couldn’t believe it. We both said it was wonderful but we were so surprised,” said Beaumont from Kinousa village in Paphos.

“In the back of our minds we thought we would lose. When we won it just overcame us. It was very emotional,” she added.

The legal victory came at a cost. The search for their “dream home” and the stress it caused led to a split in 2002, after 20 years together. Despite the break-up, the two agreed to continue their search for justice.

According to Beaumont, the property dispute also took its toll on Sims’ health, who heard about the victory from a hospital in England, where he underwent a triple bypass.

“We wanted a place to retire, it was supposed to be our dream house. We loved the country and the people, we still do, but unfortunately we got caught in this trap,” she said.

The couple, both from Gloucestershire, sued their Paphos lawyer Nicos Papakleovoulou for negligently handling a property contract in 1999, which led to them losing a significant amount of money while never getting the property.

The lawyer had failed to inform the couple that the property had been twice mortgaged and had a charge registered against it. The developer who signed the contract subsequently went bankrupt and never finished the house.

?We paid a heavy price for victory? - Cyprus Mail

 

[Cornholio]

Comment............

Our View: Now, lawyers can be taken to court
Published on May 1, 2010

THE SUPREME Court decision, by which a Paphos lawyer was made to pay €120,000 in compensation to a British couple for his professional negligence, was a victory for ordinary people. It was the first time that a lawyer had been found guilty of negligence by a Cyprus court, which sets an important legal precedent and paves the way for other people to take action against lawyers.

This is not to say there would be an avalanche of such cases as there are not many lawyers who would take on a case against a colleague. The professional solidarity that exists among doctors – which is why it is almost impossible to sue a doctor in Cyprus for malpractice or medical negligence – also exists among lawyers, and it was a big surprise that the British couple found someone to take on their case.

What makes matters worse is the fact that professional bodies in Cyprus operate more like trade unions, protecting members’ rights instead of ensuring that members always maintain high professional and ethical standards. Rarely is a member of the Bar Association or the Medical Association struck off the register for unethical behaviour or professional misconduct as is the case in many other countries. Need we mention the case of the doctor who was found guilty by a court of sexually assaulting a patient but who was allowed to carry on practising?

The disciplinary boards of these bodies are toothless and more concerned with shows of solidarity than ensuring the good professional standing of the profession. We do not know of a case of a lawyer being disbarred and this is not because the island’s lawyers maintain high professional and ethical standards at all times. On the contrary, stories of professional misconduct and unethical practices abound, but the Bar Association rarely deems it necessary to bring lawyers before its disciplinary board.

At least now, people with serious complaints against lawyers can go to the courts. It may be a long drawn-out and costly procedure but the Supreme Court ruling has shown that lawyers cannot always get away with sharp practices. Dishonest lawyers may think twice about deceiving clients or selling them short from now on. In other words, the ruling could raise professional standards and reduce sharp practices by lawyers, which is more than the Bar Association has ever done.

This is why the Supreme Court must be congratulated for its decision. But the biggest praise should go to the British couple who took on the lawyer, whose negligence had wrecked their lives, and did not give up the fight until justice was done. They set a glowing example for all of us.

Our View: Now, lawyers can be taken to court - Cyprus Mail

 

[Cornholio]

Update............

Bar Association to mull landmark ruling next week
Published on May 4, 2010

THE CYPRUS Bar Association will meet next week to discuss the implications of the first ever case of compensation awarded for a lawyer’s negligence by the Supreme Court last month.

Bar Association President Doros Ioannides said yesterday the association would meet on May 13 to decide what position to take on the matter. On April 21, the Supreme Court ruled that Paphos lawyer Nicos Papacleovoulou had negligently carried out his duties on behalf of a British couple in a property transaction in 1999. The top court ordered the lawyer to pay €120,000 to the couple for money lost as a result of the transaction.

Ioannides noted this was the first ever case involving a lawyer’s negligence and needed further examination by the association. It also marks a precedent in that a lawyer agreed to represent clients suing another lawyer for the first time while in its ruling, the Supreme Court laid down, again for the first time, the duties and obligations of a lawyer in property transactions.

The judgment has ruffled a few feathers in the legal profession as lawyers who dabbled in unsafe practices in the past, particularly regarding searches in property transactions, are now liable to similar charges of negligence.

Bar Association to mull landmark ruling next week - Cyprus Mail

 

[Cornholio]

Update............

Bar Association advises lawyers after landmark ruling
By Stefanos Evripidou
Published on May 16, 2010

THE BAR Association has decided to advise its members on the broader range of duties placed on legal practitioners following last month’s landmark Supreme Court ruling on legal negligence.
The Supreme Court awarded a British couple around €120,000 in compensation as a result of their Paphos lawyer’s negligence in a property case, marking a first in Cyprus.
Head of the Bar Association, Doros Ioannides, told the Sunday Mail yesterday that the landmark case was discussed during last Thursday’s monthly board meeting.
“We discussed what are the liabilities and extra duties of lawyers arising from the judgement from a legal point of view and also how to advise lawyers,” said Ioannides.
“We agreed to explain to lawyers the decision and what obligations, undertakings, liabilities arise as a result regarding out of court activities,” he said, noting that this involved all practices, not just property transactions.
Ioannides acknowledged that the Supreme Court decision widened the responsibilities and liabilities of lawyers.
“It’s a decision which puts some guidelines down so a lawyer has to be careful towards his client. What we will give is not binding, just advice.”
Ioannides noted that as of January 1, 2010, all lawyers are obliged to take professional indemnity or else they can not renew their practising lawyer’s licence.
“If a client wants to get compensation they can either go to court or sort it out with the insurance company in an out-of-court settlement.
Asked whether he agreed with the court decision, he replied: “I don’t disagree with the decision as a whole. There is professional negligence in every profession, whether you are a doctor, lawyer or driver.”
The decision is likely to have sent alarm bells ringing among those lawyers who may have been following unsafe practices, particularly on property issues.
The British couple involved in the landmark case sued their Paphos lawyer Nicos Papakleovoulou for negligently handling a property contract in 1999, which led to them losing a significant amount of money while never receiving the property.
The lawyer had failed to inform the couple that the property had been twice mortgaged and had a charge registered against it. The developer who signed the contract subsequently went bankrupt and never finished the house.
Following an 11-year pursuit of justice, which cost them their relationship and the man’s health, the British couple finally had their day in court last month when the top judges ordered the lawyer to pay full compensation to the couple for money lost as a result of his negligence.
The couple’s Nicosia-based lawyer, Nicholas Georghiades, the first lawyer in Cyprus to take on a colleague in a negligence case, described the ruling as “outstanding” and “the best case scenario” since “it set a very good precedent, fully explaining a lawyer’s duties”.
It was the first case of a lawyer’s negligence in Cyprus and the first time that the top court chose to lay out the duties and obligations of a lawyer vis-a-vis their clients, providing the basis for any future case against negligent lawyers, particularly on title deeds.
Speaking after the ruling, Georghiades explained there was no previous case law in Cyprus, meaning he had to rely on English authorities that might not necessarily be adopted. “In England, the law society has special rules on conveyancing practice. There’s no such thing in Cyprus,” he said.

Bar Association advises lawyers after landmark ruling - Cyprus Mail