World’s Second Largest law Firm, Linklaters, Sees Off €50 Million Negligence Claim.
By: Ainsley Brown
Linklaters can now breath a huge sigh of relief has it got only what can be only called a light tap on the wrist – to say a slap would be too harsh- by being order to pay £5. That was not a type o, there are no zeros behind that 5.
A former client of the firm, Levicom, brought suit in the High Court in England claiming €50 million arising from the negligence of Linklaters. Levicom, a Baltic telecommunications company, claimed that Linklaters provided it with unrealistic and careless advise amounting to negligence in a dispute it had with a Swedish rival back in 2001. Specifically, Levicom alleged that Linklaters overstated its chances of winning against Tele2 in its dispute with that company over a joint venture that went awry. This in turn prompted Lecicom to take a hostile position rather an opting for early and amicable resolution of the dispute which would have led to much more favorable terms.
The €50 million claim was for substantial damages for financial loss stemming from the negligent advice from Linklaters. Mr. Justice Andrew Smith, sitting in the High Court, agreed but only in part. He agreed that Linklaters was only partially negligent but that this negligence did not cause Levicom any loss. However, Linklaters was in breach of contract, and thus liable to Levicom for nominal damages – the £5 tap on the wrist.
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