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Levicom International Holdings BV & Anr v Linklaters, 11/5/10, [2010] EWCA Civ 494

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Where a client is given positive legal advice as to the prospects of his claim it would be expected that the client relied on that advice in continuing his claim and the evidential burden of disproving a causative effect should shift to the law firm to disprove it. The advice given by the law firm was overly optimistic on facts of the case particularly in the context of an arbitration and the difficulty of challenging a decision of arbitrators on the construction of a clause by way of appeal. Accordingly the client was allowed to recover its losses for not having compromised the dispute at an earlier stage.

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