Liability towards clients

A solicitor’s liability in conveyancing lies in both contract and in tort. The solicitor is under a contractual duty to consult his client on all questions of doubt which do not fall within the express and implied discretion left to him, and to keep his client informed to such extent as may be necessary. The solicitor is liable in tort because at common law, the relationship of solicitor and client gives rise to an obligation on the part of the solicitor to be skilful and careful and to a duty not to injure his client by failing to do that which he has undertaken to do. (See Yong & Co. v Wee Hood Teck Development Corporation [1984] 2 MLJ 39).

Numerous court decisions have highlighted the hazardous nature of conveyancing work in particular relating to forgery and fraud. In Lau Tek Sen @ Lau Beng Chong & 3 Ors v. S K Song [1995] 2 CLJ 425, a solicitor acting for a vendor was held liable to refund to the purchaser the purchase price paid, the broker fees and the legal fees and disbursements paid by the plaintiffs to their solicitor when it was discovered that the vendor’s identity card was forged. The High Court held that by acting for the vendor, the solicitor had represented that the vendor was the actual registered proprietor.

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