Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Happy Rayna Stephany, Andin Aditya Rahman
The well known and respected Indonesian law firm, Ali Budiarjo Nugroho Reksodiputro (ABNR), one of Indonesia’s oldest law firms, is currently facing a court case and a claim of USD 4 million in damages filed by a client, Sumatra Partners LLC, a United States-based financing company.
In the lawsuit Sumatra Partners claims that ABNR was negligent in providing information to Sumatra Partners LLC due to a failure to properly confirm whether or not 12 trucks were registered on behalf of another creditor under a secured loan arrangement on which ABNR advised.
Sumatra Partners is also arguing that the ABNR attorneys should have ensured the authenticity and lawfulness of a bank guarantee that was part of the transaction.
Erman Rajagukguk, an economics law professor at the Law Faculty of the University of Indonesia commented that one measure against claims by dissatisfied clients is to have professional indemnity insurance for legal consultants.
Many common law countries including the United Kingdom make such insurance compulsory and a prerequisite for the issue of practising certificates for lawyers.
As a consequence, the fees charged by lawyers in such jurisdictions are generally costly in order to cover what is a business cost that must be covered through income generated through the provision of legal services.
“So, don’t be astonished to find that British lawyers are very expensive because they insure their lawyer’s legal opinions,” he stated at a Hukumonline seminar earlier this year.
Responding to this issue, Mega Manurung of PT. AIG Insurance Indonesia, stated that insurance to protect legal consultants is available in Indonesia.
Although the company’s product offers protection for law firms from claims by dissatisfied clients, Mega explained that currently only 10 law firms hold polices for this kind of insurance with her company.
While not revealing any names or details, Mega commented that one of those firms has filed a USD 4 million claim with her company.
Also responding to the issue, Asrul Sani, a regular arbitrator in the United Kingdom, stated that insurance covering legal opinions is of great importance, considering Indonesia’s legal circumstance are generally surrounded by uncertainty.
“This ABNR case is not the first. For a country in which legal certainty is low, this insurance is needed,” stated Asrul when contacted by Hukumonline last Friday.
Commenting further, Asrul notes that insurance for legal services has been implemented in both Australia and United Kingdom for some years.
In Australia, it came to the forefront in 1995 when Australian lawyers were often sued by clients over their legal services. In the United Kingdom, insurance schemes for legal professionals started earlier in the 1980s.
Legal service insurance, however, is limited to corporate lawyers and is not available for litigators. This reflects the uncertainty outcomes in litigation within court systems.
“Litigation is hard because a win or a loss cannot be guaranteed,” he explained.
Asrul affirmed Erman’s view that British lawyers are indeed very costly because the legal service insurance payment obligations are passed onto clients in-line with the income levels of British lawyers.
Fresh graduates working for renowned law firms in the United Kingdom are generally paid GBP 32 thousand per year and senior lawyers may charge up to GBP 1000 per hour.
“Automatically they are very expensive because there is a premium for this,” he concluded.
(hot/kc)
Happy Rayna Stephany, Andin Aditya Rahman
The well known and respected Indonesian law firm, Ali Budiarjo Nugroho Reksodiputro (ABNR), one of Indonesia’s oldest law firms, is currently facing a court case and a claim of USD 4 million in damages filed by a client, Sumatra Partners LLC, a United States-based financing company.
In the lawsuit Sumatra Partners claims that ABNR was negligent in providing information to Sumatra Partners LLC due to a failure to properly confirm whether or not 12 trucks were registered on behalf of another creditor under a secured loan arrangement on which ABNR advised.
Sumatra Partners is also arguing that the ABNR attorneys should have ensured the authenticity and lawfulness of a bank guarantee that was part of the transaction.
Erman Rajagukguk, an economics law professor at the Law Faculty of the University of Indonesia commented that one measure against claims by dissatisfied clients is to have professional indemnity insurance for legal consultants.
Many common law countries including the United Kingdom make such insurance compulsory and a prerequisite for the issue of practising certificates for lawyers.
As a consequence, the fees charged by lawyers in such jurisdictions are generally costly in order to cover what is a business cost that must be covered through income generated through the provision of legal services.
“So, don’t be astonished to find that British lawyers are very expensive because they insure their lawyer’s legal opinions,” he stated at a Hukumonline seminar earlier this year.
Responding to this issue, Mega Manurung of PT. AIG Insurance Indonesia, stated that insurance to protect legal consultants is available in Indonesia.
Although the company’s product offers protection for law firms from claims by dissatisfied clients, Mega explained that currently only 10 law firms hold polices for this kind of insurance with her company.
While not revealing any names or details, Mega commented that one of those firms has filed a USD 4 million claim with her company.
Also responding to the issue, Asrul Sani, a regular arbitrator in the United Kingdom, stated that insurance covering legal opinions is of great importance, considering Indonesia’s legal circumstance are generally surrounded by uncertainty.
“This ABNR case is not the first. For a country in which legal certainty is low, this insurance is needed,” stated Asrul when contacted by Hukumonline last Friday.
Commenting further, Asrul notes that insurance for legal services has been implemented in both Australia and United Kingdom for some years.
In Australia, it came to the forefront in 1995 when Australian lawyers were often sued by clients over their legal services. In the United Kingdom, insurance schemes for legal professionals started earlier in the 1980s.
Legal service insurance, however, is limited to corporate lawyers and is not available for litigators. This reflects the uncertainty outcomes in litigation within court systems.
“Litigation is hard because a win or a loss cannot be guaranteed,” he explained.
Asrul affirmed Erman’s view that British lawyers are indeed very costly because the legal service insurance payment obligations are passed onto clients in-line with the income levels of British lawyers.
Fresh graduates working for renowned law firms in the United Kingdom are generally paid GBP 32 thousand per year and senior lawyers may charge up to GBP 1000 per hour.
“Automatically they are very expensive because there is a premium for this,” he concluded.
(hot/kc)