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EMPLOYEE CLAIMS THREAT

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Individual employees are now vulnerable to claims brought against their employers, after a decision by the House of Lords.

The decision will affect any professional who has provided advice on behalf of an employer which then goes bust, or is underinsured. It will particularly hit professionals such as architects, surveyors, engineers and financial advisors. The ruling by the House of Lords Appeals Committee was given in the case of Merrett vs Babb, in which a surveyor and member of the RICS was held to be personally liable, after the insolvency of his employer, for a mortgage valuation he had carried out seven years earlier.

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