The law firm
Hill Dickinson LLP avoided paying substantial damages, despite being liable
for professional negligence.
Businessman
Michael Hirtenstein purchased a £3.6m yacht, relying on an assurance as to the
condition of the yacht from its previous owner. Within an hour
of its purchase, the yacht suffered a major engine failure 12 miles offshore,
and Mr Hirtenstein subsequently spent £360,000 on repairs.
Hill Dickinson, wrongly had advised Mr Hirtenstein that Christian
Candy had personally guaranteed the condition of the yacht, when no such
guarantee existed. As a result Hill Dickinson accepted they were negligent in advising Mr Hirtenstein that a personal guarantee had been obtained.
However,
Hill Dickinson avoided paying substantial damages to Mr
Hirtenstein. Mr Hirtenstein purchased the yacht for approximately £3.6m, when the
initial asking price was €17m. The High Court held he would have gone
ahead with the favourable purchase anyway, whether a personal guarantee as to
the yacht’s condition existed or not. Hill Dickinson’s negligence had not caused
loss to Mr Hirtenstein, and as such only nominal damages were awarded.