Bloxham are facing €10m claim for 'negligent advice'

Tim Healy

Various partners in Bloxham stockbrokers are facing court claims for almost €10m.

The claims arise from allegedly negligent advice to invest in a bond, which later fell by more than 97pc in value.

Two leading solicitors yesterday said they had suffered combined losses of more than €1.4m over investment in the bond.

Their claims come after the Solicitors' Mutual Defence Fund (SMDF) -- the main insurance body for the country's 3,500 solicitors -- last month brought proceedings against Bloxham over the same bond.

It alleged its ability to indemnify lawyers had been affected by more than €8m losses suffered after the bond's value fell.

Yesterday, Mr Justice Peter Kelly transferred the two separate proceedings to the Commercial Court list.


They were brought by LK Shields Solicitors, and by Maurice Curran -- a retired solicitor and former chairman of the SMDF -- and his wife Noelle.

The various actions over the bond are to run together.

The judge was told some of the Bloxham defendants are seeking indemnity on grounds they were not partners at the time of the alleged negligent advice in 2005.

In the Shields action, the firm claimed it relied on advice from the brokers when deciding in January 2005 to invest €1m in the bond.

In the Currans' action, Mr Curran claims, relying on advice from Bloxham, he and his wife invested €400,000 in the bond in January 2005.

It later emerged the bond was not suitable for their investment requirements.

Mr Justice Kelly was told last month that Bloxham is suing Morgan Stanley in Britain for breach of contract relating to the bond, but that claim is limited to €42.75 for every €100 invested in the bond.