In what circumstances is a claims consultant liable for defective professional advice?
Yes. A consultant may be liable where the retainer imposes the relevant duty, the advice falls below the required professional standard and that breach causes recoverable client loss.
Incorrect advice creates liability only where it breaches the retained duty and causes proven loss
Start with the written appointment: scope, exclusions, standard of care, responsibility for deadlines, liability cap and notification terms. A consultant does not warrant that every claim will succeed, but must exercise the skill and care reasonably expected for the work undertaken. Missed time bars, incorrect contract interpretation or failure to warn may amount to breach. The client must still prove what would probably have happened with competent advice, quantify the lost opportunity and account for its own conduct.
| Issue | Position |
|---|---|
| Retainer | Defines the task and responsibility assumed |
| Standard of care | Reasonably competent performance, not guaranteed success |
| Breach | Advice or omission below that standard |
| Causation | Competent advice would probably have produced a better result |
| Loss and limitation | Quantify recoverable loss and apply contractual limits |
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