Temple continues to support claimants pursuing substantial professional negligence claims across a range of practice areas, including complex property transactions and family law proceedings. The following recent matters illustrate the breadth of cases in which Temple has provided After the Event insurance to mitigate adverse costs risk and enable meritorious claims to proceed.
Professional Negligence Case Study: Defective Exit Fee Drafting in £7.5m Property Finance Claim
A group of international property development companies has brought a £7.5 million professional negligence claim against its former solicitors following the defective drafting of an exit fee agreement (‘EFA’) linked to multiple lending facilities
The EFA was intended to allow the claimants to exit their facilities without exposure to early or forced exit fees, limiting any payment to a longstop date or a profitable sale of a Central London property. While these terms were agreed in principle, the solicitors failed to reflect them in the final documentation or advise on the associated risks.
As a result, a refinancing event triggered an unexpected exit fee, forcing the claimants to secure alternative funding at short notice in adverse market conditions, resulting in significant financial loss.
Temple issued an ATE policy to the claimants, enabling them to pursue a professional negligence claim against the Defendant without the risk of incurring adverse costs if the case was unsuccessful. Furthermore, the ATE policy included an anti-avoidance endorsement to satisfy the defendant’s security for costs application.
The Temple Perspective
Complex funding and property development transactions often depend on precise drafting and clear advice on risk allocation. Where those protections fail, the resulting losses can be substantial.
Temple supports claimants pursuing high-value commercial professional negligence claims by providing ATE cover that mitigates adverse costs exposure and assists in responding to security for costs challenges.
Matter value: £7,500,000.
Case status: ATE insurance policy issued, case ongoing.
Team members involved: Tom Watkins, Senior Underwriter and Matthew Pascall, Head of Legal.
Professional Negligence Case Study: Failed SPV Structuring Advice in £4m Property Investment Dispute
Two Middle Eastern investors have brought a professional negligence claim exceeding £4 million against their former solicitors following the collapse of a UK property investment.
The claim arises from the proposed acquisition of a mixed‑use building in Hull, intended to be held as a long‑term investment. The transaction was restructured from a direct property purchase into the acquisition of the sole share in a special purpose vehicle (‘SPV’) holding the lease, allegedly on the basis that this would provide tax advantages. The Claimants contend that they were not properly advised on the risks of this structure.
Under the share purchase agreement, substantial deposits were required to be paid in advance, with no effective protection in the event of non‑completion, seller insolvency, or failure to carry out refurbishment works.
By late 2020, more than £4 million had been advanced, including significant sums paid towards renovation works despite the absence of adequate security, a robust building contract, or guaranteed funding arrangements.
The Claimants allege that the Defendants failed to advise on the risks of the transaction, failed to secure appropriate contractual protections and permitted further payments to be made even as the seller’s financial position deteriorated.
Following the death of the Claimants’ sister and undisclosed changes to the ownership of the SPV, the seller treated the agreement as terminated, forfeiting the deposits before entering insolvency. Only a small fraction of the investment was recovered.
Temple issued an ATE policy to support the claim, protecting the claimants against adverse costs exposure while the matter proceeds.
The Temple Perspective
Professional negligence claims arising from transactional and corporate structuring advice frequently involve detailed analysis of documentation, risk allocation and causation. Early access to ATE insurance can provide reassurance to claimants facing substantial losses and support the pursuit of complex, document-heavy claims.
Matter value: £4,000,000.
Case status: ATE insurance policy issued, case ongoing.
Team members involved: Tom Watkins, Senior Underwriter.
Professional Negligence Case Study: Family Law Advice and Long-term Maintenance Claim (£770,000)
A former divorce client has brought a £770,000 professional negligence claim after her solicitors allegedly failed to protect her long‑term financial position despite clear evidence of her issues with her mental health.
The Claimant instructed the Defendant solicitors to act for her in divorce and ancillary relief proceedings. At the time, the Claimant suffered from significant and ongoing mental health conditions, which materially affected her earning capacity and ability to achieve financial independence.
The Claimant alleges that the Defendants failed to advise properly on interim and long‑term maintenance, failed to obtain and deploy appropriate medical evidence, and failed to present her case on the correct basis at a Financial Dispute Resolution hearing.
In particular, it is alleged that the Claimant was advised to accept a time‑limited spousal maintenance order, subject to a statutory bar preventing any future extension, despite her inability to increase her working hours without risking deterioration in her health.
The Claimant contends that, but for the Defendants’ negligence, she would have secured a significantly more advantageous maintenance outcome. As a result of the alleged failures, she suffered substantial financial loss and was deprived of the opportunity to obtain appropriate long‑term provision.
Temple issued an ATE policy to support the claim, mitigating adverse costs risk while the matter progresses.
The Temple Perspective
Professional negligence claims arising from family law advice often involve complex issues of causation, loss of chance, and expert evidence. Temple supports claimants pursuing high‑value professional negligence claims by providing ATE insurance solutions that mitigate adverse costs risk and enable meritorious claims to proceed with confidence.
Matter value: £770,000.
Case status: ATE insurance policy issued, case ongoing.
Team members involved: Tom Watkins, Senior Underwriter.
Tom Watkins
Senior Underwriter
Tom Watkins
Tom is a solicitor with expertise in litigation and employment law, having qualified at a top 100 law firm. He has extensive experience across commercial, construction, insolvency, and employment law, handling a wide range of complex disputes and providing practical, solutions-focused legal advice.
In 2025, Tom joined Temple’s commercial team as a Senior Underwriter. With his diverse background in litigation, he is dedicated to leveraging his legal knowledge to deliver innovative, market-leading products and services that support Temple’s customers.
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