“A firm of solicitors which erroneously advised a bank that municipalities would not be acting ultra vires if they entered into a swap arrangement with the bank was not liable for the losses resulting from the municipalities’ inability to make restitution once the void nature of the swap agreement came to light. Despite their negligence in relation to the vires of the municipalities, the solicitors had taken no responsibility for their creditworthiness or good faith or for the fact that the bank could not lawfully obtain execution against them when they defaulted on the arrangement.”
WLR Daily, 31st January 2011
Source: www.lawreports.co.uk
Please note once a case has been fully reported in one of the ICLR series the corresponding wLR Daily summary is removed.
