Solicitor's professional indemnity (PI) rates could be radically overhauled if a High Court ruling goes against a group of insurers tomorrow. According to market sources, the case, Nationwide Football League vs Hammonds, could result in "the biggest PI claim against a law firm for years".
Nationwide Football League has challenged law firm Hammonds over advice given on its deal with failed digital broadcaster, ITV Digital. The media provider collapsed in March 2002 with £180m still owed to the Football League.
It is understood that Ace led the group of PI providers for Hammonds. The group could be forced to cover the £100m claim, sending reverberations through the market.
Frank Maher, head of PI for Legal Risk, said traditionally PI insurance rates have been low, but "a radical review of pricing is likely if this case is won."
Maher said: "Lawyers are there to advise on law, not business decisions...this was a decision by businessmen and they should have made their own minds up".
Ace declined to comment on the outcome of the case.