Solicitors' implied warranty of authority to act considered (Mr Aidiniantz v The Sherlock Holmes International Society)

Article summary

Dispute Resolution analysis: The Companies Court has considered the jurisdiction of the inference of the warranty given by solicitors acting in litigation that they have their client’s authority so to act, with reference to the leading authority in Jonge. One aspect of the rationale for the rule being the exposure to unrecoverable costs where a party is litigating in circumstances where there is no person or entity behind the unauthorised solicitors against whom to recover costs if awarded. The judge considered the possible defences to such a claim. He concluded that a claimant cannot recover damages for breach of warranty of authority where this would provide a better outcome for the claimant than had the warranty not been breached, ostensible authority may provide a defence if and to the extent that it puts the claimant into the same position as he would have enjoyed if there had been actual authority, and, in similar vein, section...