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Professional negligence – Matthew Arnold & Baldwin to appeal against dismissal of £10m claim against Watson Farley

Matthew Arnold & Baldwin has said its client plans to appeal against the High Court’s decision last week to dismiss a £10m professional negligence claim against Watson, Farley & Williams.

In a case heard in London’s High Court last Friday (31 January), Mr Justice Silber dismissed a counterclaim from former Watson Farley client Itzhak Ostrovizky, who sought damages on the basis of negligence and/or breach of duty of Greek-qualified corporate partner Virginia Murray in the Athens office of the top 40 firm.

Matthew Arnold & Baldwin partner Jonathan Sachs instructed Hailsham Chambers’ Michael Pooles QC and Selborne Chambers’ Gary Blaker, while Watson Farley is being represented by rated Clyde & Co disputes partner Sarah Clover, who instructed 4 New Square’s Ben Hubble QC and Pippa Manby.

Ostrovizky alleged that Murray’s drafting of three share purchase agreements concerning investments made or about to be made in a solar electricity project Greek Photovoltaic Park caused him to suffer substantial lost profits and wasted expenditure investments made in the solar electricity market in Greece.

However, Justice Silber on Friday dismissed the allegations and instead found that Ostrovizky’s alleged losses were caused by other factors, such as the credit crunch, and ordered him to pay costs to the firm.

Today, South East firm Matthew Arnold told Legal Business that it ‘considers the decision to be wrong, and that the client has given us instructions to appeal.’

A spokesperson for Watson Farley said: ‘We are satisfied that the court made the right decision but we have no further comment.’