Professional negligence involves the failure of a professional to act with reasonable care and skill towards their client. If this is the case, a client may have a legal right to claim compensation for financial loss against the professional. Professionals can include accountants, solicitors, doctors and engineers.
Common types of professional negligence
- Incorrect or misleading financial advice;
- Incorrect or misleading legal advice;
- Incorrect accounting, auditing or tax advice;
- Incorrect property evaluations;
- Engineering errors; or
- Failing to warn of medical risks.
What is required for a professional negligence claim?
In order to make a claim for professional negligence, it must be established that there was a duty of care, the professional breached the duty and as a result, the person suffered losses.
A breach of duty of care exists when:
- There was a substantial or ‘not insignificant’ risk of harm; and
- The professional knew, or ought to have known the risk of harm; and
- A reasonable person would have taken measures against the risk in the same circumstance.
- Advice on the breach of duty of care;
- Advice on claims;
- Alternative dispute resolution; and
- Identify suitable options.