Debt collection referral for 16 year old Judgment leads to negligence claim against country Solicitor and fast recovery for client.
A debt collection agent referred a client seeking to enforce a Victorian District Court Judgment debt of approximately $120,000 (including interest) that was 16 years old. The client had made unsuccessful attempts to enforce the Judgment over the years and most recently sought the assistance of a Country NSW Solicitor.
The Solicitor had failed to clarify the terms of his retainer and/or had agreed to act on a contingency cost basis.
The Solicitor failed to take any real action to enforce the Judgment or advise the client that a limitation period of 15 years applied to enforcement of the Judgment. The limitation period expired while the Solicitor was still acting.
Roberts Legal quickly identified the applicable limitation period and professional negligence on the part of the Solicitor.
Roberts Legal issued a detailed letter of demand that was promptly referred to the Solicitor’s Professional Indemnity insurer, LawCover.
The claim was quickly settled by LawCover with the client receiving $100,000.00 within only 10 weeks of the letter of demand being sent.