I have been sent a letter by an ex client lawyer demanding…

Whether his claim has merit will depend on a precise view of what you told him and what the court determines was the nature of your role.. (i.e. whether you were acting as an adviser or as an agent may affect your duties with respect to due diligence and your obligation to warn him). It will be in your favour that he is a lawyer and you should arguably be able rely on his having an awareness of risks in this situation, and that therefore any warnings you might have offered should already have been within his knowledge.

As to what you should say in reply, you should simply write a letter making the following points:

1. You gave no undertakings as to the quality or reliability of this 'underwriter' and was not your role to do due diligence.

2. That as he advised he was a lawyer that he must have been aware of the risks of doing dealings with an overseas organisation such as this.

3. You are not liable for the criminal or unethical conduct of third parties.

4. You have received no payment for this work as you were providing your services on a success basis.

What you don't want to do is get into a discussion about who said what, as lawyers are quite good at obtaining implicit admissions and concessions in the course of such correspondence.

I trust the above assists.

Good luck and please click accept.