Alleged negligent advice puts solicitors’ defence fund in jeopardy

THE main insurance body for solicitors in Ireland has claimed its ability effectively to indemnify solicitors has been affected by more than €8 million losses allegedly resulting from negligent advice by Bloxham Stockbrokers about investing in atotally unsuitable bond which fell 97% in value.

News of the losses had come as a “profound shock” to the Solicitors Mutual Defence Fund, which has some 3,500 members, and had invested one third of its investment portfolio in the bond, fund chairman Laurence Shields said in an affidavit to the Commercial Court.

When admitting the case to the court yesterday, Mr Justice Peter Kelly was told by John Gordon SC, for the fund, other legal actions have been initiated over the same investment. Bloxham’s has itself sued Morgan Stanley in Britain for breach of contract relating to the bond, but that claim is limited to €42.75 for every €100 invested in the bond.