Setback for Linklaters in multi-million dollar negligence suit

May 12, 2010 The Court of Appeal has dealt a blow to Linklaters in their ongoing dispute with Levicom, overturning a previous decision that saw the magic circle firm escape a multimillion-dollar payout for alleged negligence and awarded nominal damages. The firm now faces the prospect of liability for a multimillion-dollar settlement.

The negligence claim arises from advice Linklaters provided to Levicom in 2000 regarding a dispute with telecoms company Tele2 AB. Levicom claims that Linklaters' advice led to arbitration in 2004, and that the opportunity to negotiate a more advantageous settlement was lost. In a previous judgment it was ruled that Linklaters was in fact negligent in some respects, but that this negligence did not cause Levicom any loss. That judgment placed burden of proof on the claimants, but this latest decision has overturned that ruling.

Levicom is advised by Stewarts Law litigation partner Andrew Shaw along with 4 New Square's Justin Fenwick QC instructed as counsel. Linklaters is advised by Clyde & Co litigation partner Conrad Walker, with Fountain Court's Stephen Moriarty QC as counsel.

Linklaters has confirmed that they will seek leave to appeal to the Supreme Court.


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