Lawyer messed up
Discussion
Approximately 7 years ago, I sold my share of a business to my business partner and the contract of sale that when they decided to sell the business, I would be given first refusal and the price based on the same formula based on ebit as originally sold. My lawyer who represented me at the time was the person who wrote that contract and advised me personally and wholly.
The ex business partner wrote to me to say as per the contract, I can buy the business at the agreed ebit formula and that I had 4 weeks to complete. It was a bit rich for me so I needed more time to raise the required amount. So I decided to contact my original lawyer who didn’t respond for 10 days despite me chasing them. He came back to me this week saying full disclosure, he had forgotten that he had written the original contract and that he advised me at the time but he has been advising my ex-business partner. The solicitor admits he should have remembered, and not represented my ex-partner but he has already given them advice which they’ve used. He said he will “report himself” to his line manager/hr and will come back to me in a couple of days.
What should I do? Is this illegal or just an oversight? Should the lawyer have checked his files more diligently, remembered the case? Can I report him to the law society if it doesn’t go my way?
First time I’ve encountered anything like this
The ex business partner wrote to me to say as per the contract, I can buy the business at the agreed ebit formula and that I had 4 weeks to complete. It was a bit rich for me so I needed more time to raise the required amount. So I decided to contact my original lawyer who didn’t respond for 10 days despite me chasing them. He came back to me this week saying full disclosure, he had forgotten that he had written the original contract and that he advised me at the time but he has been advising my ex-business partner. The solicitor admits he should have remembered, and not represented my ex-partner but he has already given them advice which they’ve used. He said he will “report himself” to his line manager/hr and will come back to me in a couple of days.
What should I do? Is this illegal or just an oversight? Should the lawyer have checked his files more diligently, remembered the case? Can I report him to the law society if it doesn’t go my way?
First time I’ve encountered anything like this
Your ex- lawyer should have carried out a “conflict check”. Large firms have processes where they check key terms against old files - and will have an electronic database of clients and matters..
Has your ex lawyer advised your business partner about the sale to you now? If so, that is very likely a conflict. It might be different if the ex-lawyer advised the company first time round, but your post says it was you personally that he was advising.
What to do? I would get a new lawyer to represent you now, suggest old lawyer steps away and is replaced. He probably needs to report himself to the regulator … but I would wait and see what their explanation is.
I would have thought your main interest is in doing the deal on the business and the rest is a side show (commercially) unless ex-lawyer has info from acting for you that helps the ex business partner. Is it cock up or conspiracy?
Has your ex lawyer advised your business partner about the sale to you now? If so, that is very likely a conflict. It might be different if the ex-lawyer advised the company first time round, but your post says it was you personally that he was advising.
What to do? I would get a new lawyer to represent you now, suggest old lawyer steps away and is replaced. He probably needs to report himself to the regulator … but I would wait and see what their explanation is.
I would have thought your main interest is in doing the deal on the business and the rest is a side show (commercially) unless ex-lawyer has info from acting for you that helps the ex business partner. Is it cock up or conspiracy?
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