Jacqueline Frances Gomes & Anor v AMG Financial Management Limited & Ors

Facts

Mrs Gomes lent money to Mr Bowdery, a property developer, under a series of unsecured facility agreements: an agreement of 24 September 2015 for £500,000, a restated agreement made on 20 April 2016 consolidating the lending at £1.1 million, and a final agreement dated 13 August 2020 rolling up a redemption amount of £1,959,760. The loans were arranged through the Claimants' financial advisers, AMG Financial Management Limited and its managing director Mr Grey. Mr Mandelli, a solicitor engaged intermittently by AMG as a consultant, drafted loan documentation; clause 7 of the April 2016 agreement provided for £3,000 to cover the lender's legal costs of preparing the agreement, and Mr Gomes paid £3,000 to Mr Mandelli on 9 May 2016. The loans were not repaid. The Claimants sued Mr Bowdery for repayment and AMG, Mr Grey and Mr Mandelli for negligent advice. The claims against the advisers were stayed by successive consent orders while the Claimants pursued Mr Bowdery, obtaining judgment against him which proved unenforceable. When the stay ended, Mr Mandelli refused a further extension and applied to strike out and for summary judgment; the Claimants applied to extend time for Particulars of Claim, which were served only on the morning of the hearing.