London HC enters £100,000 default judgment v Fox Mandal in professional negligence claim

Karat v Fox
Karat v Fox
Fox Mandal did not appear before court to respond to the claim that the firm gave negligent advice in a patent application.

Lawrence Karat v Fox Mandal & Co: Default judgment
Lawrence Karat v Fox Mandal & Co: Default judgment
The London high court has entered default judgment for over £100,000 (Rs 90 lakh) against Fox Mandal, which did not respond to the client’s claim that the law firm gave negligent advice in a patent application.

The Mercantile Court in the High Court of Justice in London awarded £104,885 in default plus costs against Fox and its London representative office.

The client, Lawrence Karat, who is the London-based director of The Movie Card People Company, which is based in Hong Kong.

Karat instructed Fox in a patent application after meeting managing partner Som Mandal in November 2008, who allegedly “represented that the defendant firm is one of the largest [law firms] in India and will be best law firm for claimant to instruct for his patent application in India for his latest invention”, according to the particulars of claim filed with the court.

However, Karat claimed that the case was not properly managed for four years in breach of the firm’s duty to “act with all proper skill, care diligence and competence as a patent attorney”, potentially resulting in the dismissal of his patent.

Mandal commented in a phone message: “We have no news about the matter except that our client sent us a mail recently. We are instructing solicitors in UK to apply for setting aside the default judgment.”

In the particulars of claim submitted to the court by the London office of Karat’s lawyers Singhania & Co, Karat alleged that the patent application was dealt with in an “unprofessional manner”. He also part-blamed the churn of lawyers and partners leaving FoxMandal Little, as it was then called, as reported by Legally India at the time. His case was therefore “handled by many lawyers in the firm over the period of time”.

Karat claimed that Fox could not retrieve his case files and a power of attorney was misplaced. A new power of attorney was executed by Karat but was allegedly notarised by Fox in India without Karat physically present, which in his view was illegal.

Furthermore, a “proof of right” deadline was missed in the Mumbai patent office, which could lead to a dismissal of the patent, according to Karat.

Karat agreed to limit his claim against Fox to £100,000 plus interest, which the high court awarded in default on 23 May 2013 because Fox did not appear before the court.

Karat said that he was considering a bar council complaint in India and further enforcement action for the default amounts.

Historically there have not been any reported cases of an Indian law firm getting sued by a client, whether in India or abroad. Nevertheless, interest in professional indemnity insurance has been increasing among law firms to a limited degree, Legally India reported last year.

Comments

grizzled veteran 26 Jul 2013, 11:53
+3 -2
firstly *facepalm*

second, I believe FM has malpractice insurance.

or so Mr Som Mandal used to claim.
Money Phatnagar 26 Jul 2013, 13:22
+3 -5
I am surprised! How can be an insurance against one's own malpractice? Dear Indian lawyers please enlighten me and rest of the world!
RightsAsia 26 Jul 2013, 16:55
+2 -0
mainly, there are four popular types of malpractice insurance policies... one, when others play it (malpractice) upon you, and you end up with a loss/injury... two, when your client faces a loss /injury due to your deficient guidance;... three, when a third party (client's customer) is in red due to your wrong advice to your client;... and four, when your own (in)competence is the cause of your loss/injury... moreover, it can be custom-weaved around your special needs/traits at attractive differential premiums... e.g. malpractice played upon you -by known threats / identifiable adversaries : at regular premium rates; -by unknowns / strangers : medium premium payments; policy against malpractices played upon you -by ones closest to you : highest premium rates apply !! Say what sir ji ?
Money Phatnagar 27 Jul 2013, 02:32
+1 -3
You have explained everything but not replied my question! Please read thebquestiin paper before putting pen to paper.
Really? 27 Jul 2013, 10:07
+1 -1
Are you a lawyer? Or have any legal knowledge?
@ Kian 29 Jul 2013, 06:05
+0 -0
Kian, one suggestion.

RightsAsia's comment and the following ones are all numbered "1.1 ..." Except the left margin indenting, it is not clear who is replying to which comment. This is a problem on all comments sections on LI.

Hope you can fix it.

Regards.
kianganz 29 Jul 2013, 11:26
+0 -0
We can actually make it have a long string of numbers, but were worried about the potential confusion by having 1.1.2.3.1 labelled comments...? Is the indent not clear enough?
@ Kian 30 Jul 2013, 05:45
+1 -0
Kian, thanks for your reply. As I acknowledged, the indenting is helpful. But it is the only "clue" and I have seen some instances of confusion due to lack of numbering. Maybe the indenting is not clear on certain browsers or phones? I don't know.

I am not sure why there should be any confusion with numbering when it comes to literate people, and lawyers at that! If comment 1's replies are marked 1.1, 1.2, 1.3 and so on and replies to 1.2 is marked 1.2.1 and 1.2.2 and so on, I don't think there will be any confusion. Demonstrated below (not sure if it will get posted the way I have typed it, but fingers crossed) -

1.
1.1
1.2
1.2.1
1.2.2
1.3

Please consider displaying the numbering, which is the best (and standard) way to identify who is replying to who! Thanks.
@ Kian 30 Jul 2013, 08:42
+0 -0
It seems that a numbering is on display now :)

Just a thought. It seems that there is a limit to the no. of characters that can be displayed in terms of numbering, e.g. Money Phatnagar's comment numbered 1.1(1).1 (in response to 1.1(1) Rights Asia) is the last comment on which the numbering is displayed in its entirety. Maybe remove the parenthesis, which uses 2 characters "(" and ")" to make it 1.1.1 instead of 1.1(1). Or even better, just increase the no. of characters the numbering field can take. It'll be good to have full numbers.

Cheers.
@ Money Phat 29 Jul 2013, 05:30
+1 -0
You must be stupid. RightsAsia has answerd your query by saying that there can be insurance coverage against one's own malpractice. The premium will be high for such insurance and obviously, there will be carveouts for fraud, intentional acts, etc.
@ Money Phat 27 Jul 2013, 07:28
+4 -0
Seriously? ROFL. Fyi, professional liability insurance is very common in the UK and the USA. It protects professional services and advisory firms from negligence claims. Malpractice insurance may not be the correct expression for a law firm, because malpractice insurance is purchased by physicians and hospitals, but it conveys the idea pretty well and is not an incorrect expression. If you have doubts, just Google and check!

Since you made a comment against Indian lawyers, which dark backward jurisdiction are you based in? I ask as you seem to be full of ignorance, but blissfully arrogant.

Indian lawyer.
Indian Lawyer 29 Jul 2013, 09:24
+1 -0
Don't have a like option here, unlike facebook!!
kianganz 29 Jul 2013, 11:27
+1 -0
The 'like' option is the Recommend text on the right hand side...
@ Kian 1 Aug 2013, 05:49
+0 -0
SInce this question keeps cropping up, maybe you can consider replacing "recommend" with "like". I don't think FB will object on grounds of IP violation!
No Entry 26 Jul 2013, 12:53
+26 -4
No foreign firms should be allowed. If they come, how will we take clients on a ride? How?
Momta Chamchakar 26 Jul 2013, 13:24
+5 -4
Actually, this client should be criminally prosecuted in India for such frivolous claims.
bunny banerjee 27 Jul 2013, 02:46
+3 -2
I fully agree. The award seem to hv been obtained by fraudulent means and the client and the counsels should be prosecuted in India. This NRI should not be alowed to come back to India. Our officers of the courts here Will help the poor firm like they did in other cases. We are not banana republic.
foreign judgment issues 26 Jul 2013, 13:35
+9 -0
Fox has closed his London office! So the claimant will have to come to India to recover the damages, which is unlikely. Courts in India, as elsewhere, hesitate in enforcing foreign judgments! But why would someone screw up a simple patent application? But Kian, excellent reporting!
Anon 26 Jul 2013, 14:06
+0 -0
[quote name="foreign judgment issues"]Fox has closed his London office! So the claimant will have to come to India to recover the damages, which is unlikely. Courts in India, as elsewhere, hesitate in enforcing foreign judgments! But why would someone screw up a simple patent application? But Kian, excellent reporting![/quote]
Excellent reporting. Will be interesting to see how this plays out.
kianganz 26 Jul 2013, 14:10
+0 -1
I believe they closed their big London office a while ago but they still have a smaller office somewhere in London...
s Chaterjee 26 Jul 2013, 15:05
+3 -0
What about those 3-4 houses in London which were bought with others' money?
Karma Killer 26 Jul 2013, 13:49
+2 -0
About time... just when I thought I had seen everything go wrong with this firm...
Baba Nirmal 26 Jul 2013, 15:02
+2 -0
I hope it is not the curse of those and thier children who lost everything working for someone
bobo 26 Jul 2013, 15:38
+0 -0
Kian pls give link to judgement
kianganz 26 Jul 2013, 15:41
+0 -0
That picture is the judgment - default orders, since they don't go into the facts of the case and are decided in default and because the other party didn't turn up, are generally just one-page affairs.
bobo 26 Jul 2013, 18:17
+0 -0
[quote name="kianganz"]That picture is the judgment - default orders, since they don't go into the facts of the case and are decided in default and because the other party didn't turn up, are generally just one-page affairs.[/quote]
ok then pls give link to suit or whatever. Am dying to know the lawyers involved.

[quote name="kianganz"]I believe they closed their big London office a while ago but they still have a smaller office somewhere in London...[/quote]
Moma Andal 26 Jul 2013, 16:46
+2 -0
Hon'ble judges of London HC should have thought twice before passing this order......How this guy will pay fine when he is not even able to pay his support staff on time. Paupers' appeal is on its away in UK SC. All the best Mr. M
bunny banerjee 27 Jul 2013, 02:52
+0 -9
I dont agree. Only those people are not paid who do not perform. PaY is directly linked to performance.
Moma Andal 27 Jul 2013, 08:28
+5 -2
If the salary is linked to performance then it doesn't look like anyone is performing in the firm.
Scooter 29 Jul 2013, 06:46
+0 -0
and it it is so, it is self admission of bad standards.
Old Hand 26 Jul 2013, 16:52
+2 -0
One Indian law firm of some size helping to sue another for negligence. Times are a changing!
La Legal 27 Jul 2013, 09:04
+4 -0
This happens when you hire people based on jugaad and not on merits. Fox Mandal is in famous for this.
Dazed and Confused 28 Jul 2013, 02:18
+3 -6
Singhania is pretty low for taking the case. It's a credit to the plaintiff that he was not put off entirely by Indian firms and was confident enough to turn to another one for help. But really, Singhania couldn't pick up the phone and work something out?

Malpractice cases are routine in developed markets, especially the US, but Singhania certainly seems comfortable spoiling the name of the profession abroad by taking up such a case. They must be really desperate or the social cost of the representation would have exceeded the fee. Maybe they just wanted to stick it to Foxy. Is there bad blood between them?
Anon 28 Jul 2013, 19:34
+4 -1
Pretty sure the one that was "spoiling the name of the profession abroad" was FM in their mishandling of the client's case!

Don't shoot the person who tries to enforce accountability in such a situation. This is why the legal profession has become the haven of incompetence - because holding lawyers accountable for their negligence/unethical practices is somehow perceived as being against the profession (even though it is quite the opposite).
Benjy 29 Jul 2013, 04:12
+26 -1
Unlucky Som Mandal, all he did was give some lousy advice and go slow on the matter. Whats a little bad advice by a C grade firm when the biggies like AMSS and AZB regularly confuse clients, make appalling drafting mistakes and issue opinions that are even less useful than toilet paper. I think Fox Mandal should enter a plea that they are no worse than any other law firm in India and therefore have lived upto the highest standards of indian legal profession. Jai Hind!
Dazed and Confused 30 Jul 2013, 02:23
+2 -0
This is a good substantive point. The standard of care is typically the standard of like professionals similarly situated. It's not an absolute standard. Benjy correctly suggests that the case would have exposed the appealing standards here.

FM is strategically correct to allow default and then defend it here. They're only engaging abroad now out of embarrassment, which is a strategic error.

This certainly looks like a case foisted by Snghania to embarrass FM, which needs very little outside assistance to do so.
Alumni 29 Jul 2013, 10:20
+1 -0
Non sense. These default judgments are probably not enforceable, there being no adjudication on merits. These only create news but of no substance.
Anon 29 Jul 2013, 11:20
+0 -1
It is sad to see people commenting negatively on one of the most respectable firms in India. FM had some brilliant people at a point in time and its IP department was one of the best amongst full-service law firms. Its just a case where the top management could not retain those people and not get equivalent replacements for them.
RightsAsia 29 Jul 2013, 11:52
+2 -0
@Anon & @Alumni, @Benjy, @bunny banerjee, @Money Phatnagar... i dont see no offence to SM or any particular class or nationality... Well, this whole debate invites us to view the wider canvas... the bigger issues. This [i]report[/i] will prove a milestone for the observers and watchdogs of quality standards in practice. The [i]judgment[/i] will be a blessing in disguise for the whole lot legal community,,, and the [i]debate[/i] is worth all the time spent. The allegations ([i]and acceptance of complacent attitude[/i]) are worth a serious introspection.The tips, if taken rightly, will certainly prove to be a big change agent and eye opener for all the players.. the iconic established ones and the rising stars alike... t,c. !
Lawyer 1 Aug 2013, 14:02
+1 -0
It is painful to see one of the good law firms going downhill. I believe this is only with the Delhi/Noida office of Fox. There are doing well in Kolkata and Bangalore, which appear to be separate partnerships. The negative publicity brought in by Fox in Delhi is likely to hurt Kolkata and Bangalore at least with the international mandates. PSU/Govt. mandates will keep coming with connections.

Wish they had given importance to talented individuals rather than chase big dreams in form of a stronger foothold in Mumbai with Little and the London outpost, both of which were badly timed. The matter could have been retrieved if rights steps had been taken way back in 2008, when the legal markets dipped. Unfortunately, the management did not pick up the signals in time. It does not take political contacts to come out on top in the legal industry, all it needs is a hardworking, sincere and talented team supervised by experienced partners with a hold on law and a knack for doing business.
ABC 29 Jul 2013, 13:50
+1 -3
It looks Page 3 type news. Two articles on LI on this issue wherein one talk about negligence in Patent matter and the other talks about Negligence in Trademark application. Instead of LI reporting the facts and people discussing the issues involved, looks like discussion is more on defaming and thrashing parties. LI should learn from blogs like Spicy IP which is changed the meaning of Legal/IP journalism.
RightsAsia 29 Jul 2013, 19:22
+3 -0
is Journalism not like a mirror to the community and the times? Shall we throw it away in a complete denial mode or try to fix and rectify the mirror image? if taken constructively, the UK [i]judgment[/i], this LI [i]report[/i] and the present comments [i]debate[/i] can prove to be the much required game changers.
Format 30 Jul 2013, 08:44
+0 -0
How does one post text in italics and bold on LI comments?
walk n watch 30 Jul 2013, 15:47
+1 -1
the answer lies in the workout... Lord Krishna said [i]Karma[/i] is the golden key..., first you [i]begin[/i] the task, then just [i]look[/i] around for whats on your mind and watch it pop itself up before your eyes...
[i]simple !![/i]
@ ABC 30 Jul 2013, 05:51
+3 -1
Dude, we don't want LI to become another Spicy IP. Appreciate your love for IP and agony over the confusion between trademark and patent, but is that the crux of the story? Fox Mandal goofed up an IP filing and that is pretty clear. Kian has clarified now that it was a patent matter.

RIP
ABC 31 Jul 2013, 03:43
+1 -2
I am not here to defend or defame anyone. I was expecting some sensible journalism and intellectual discussion however, i have been let down. Anyway, if you guys enjoy reading these kind of writings, good luck! There are plenty of other blogs/sites for people like me.
say what? 31 Jul 2013, 04:59
+1 -1
why're [i]You[/i] so important?
i) b'cause you, like all of us, have a right to criticise.
ii) "Criticism hurts for most, but given right,[s] it [/s] you can inspire both the critic and the critiqued"
iii) but... as they say "There's one thing you just can't [s]sweep under the carpet[/s] nay 'Ignore' and that is the missing roof" !!