Africa’s largest law firm, Edward Nathan Sonnenbergs Inc (ENS), has been held liable for cyber attack on its email leading to financial losses.

The gist of the case as reported by Africa Legal was that a property buyer, Judith Hawarden, had deposited R5.5 million into what she believed was the firm’s trust account.

ENS was the solicitors to the seller of the property appointed to handle the transaction, with the authority to receive balance payment for the property. Hawarden had paid the deposit required under the sale agreement and thereafter chose to pay the balance of the purchase price of R5.5 million by way of electronic transfer of funds directly into ENS trust account (‘the ENS account’) for the benefit of the seller pending registration of transfer. Accordingly, ENS sent Hawarden an email accompanied by a PDF document confirming the firm’s banking details.

It then happened that the email was intercepted and had been hacked. The PDF had been altered to change the banking details to the one controlled by the fraudsters. Unknown to Hawarden, she paid the money by electronic transfer into the fraudster’s account instead of the firm’s account. The money was never recovered.

Aggrieved, Hawarden sued ENS at the High Court of South Africa, Gauteng Division, Johannesburg [(13849/2020) [2023] ZAGPJHC 14]. It was found that the relevant emails did not contain any warning regarding the prevalence of business email compromise (BEC) and that depositors must be circumspect by double-checking before making deposits. Hawarden contended that ENS owed her a duty of care.

However, ENS, on its part, denied any liability. The firm argued that Hawarden ought to have acted with more diligence and not be negligent.

The Judge, Phanuel Mudau, held that ENS failed to safely communicate its bank details using technical safety measures and that Hawarden depended on ENS to act professionally. According to the Judge:

I have no difficulty in finding that the defendant’s banking details were financially sensitive information regarding this matter and needed to be treated as such. I have no difficulty in concluding that the risk of BEC was foreseen by ENS. ENS is undoubtedly an experienced conveyancer, which understood the risks inherent in conveyancing transactions…

The Judge concluded that the interests of society demand that a legal duty is recognised in this case.

This case therefore serves as a lesson to all law firms and of course to everyone to be extremely careful with email communications. 



Introducing Law Practice as a Business

Dear friends, I’m happy to announce the publication of my latest book, Law Practice as a Business

Law Practice as a Business discusses a critical aspect of law-practice business—the business of making money in legal practice. It shares some of the vital business strategies and distinct ideas peculiar to the legal industry. The ideas are presented with clarity of thought and simplicity of language. Hopefully, this keeps you relaxed while activating your logical and innovative mind. 

In addition to my knowledge and personal experience, the fundamental business aspects of legal practice discussed in this book also draws from the ideas of well-accomplished legal practitioners and scholars, locally and internationally. Therefore, some of the opinions expressed in the book are authoritative. The ideas are not only authoritative but realistic, with proven degrees of success. 

This book is meant to be a source of information, inspiration, and motivation for all categories of lawyers—especially young lawyers—as well as the lay in law, including law students and people in service-based businesses.

ANNOUNCING ‘LAW PRACTICE AS A BUSINESS’, A NEW BOOK ON THE BUSINESS OF MAKING MONEY IN LEGAL PRACTICE

Book Price and How to Get a Copy

Law Practice as a Business is N7,000 (Seven Thousand Naira) only per copy, excluding delivery cost. To grab a copy or more for yourself and your learned friends, kindly make payment to any of the following account details: 

0033024933 

Azubuike Stephen Ifeanyi 

GTBANK 

OR

2025707577 

Azubuike Stephen Ifeanyi 

UBA 

You can share evidence of payment via email (siazubuike@gmail.com) or WhatsApp (+2348063868497) and provide your delivery address. 

You can also purchase the book at my online store, https://stephensbooks.net/.

NB: For law firms, legal departments, and other organisations, Law Practice as a Business is also available for bulk purchase and is deliverable to all locations. To place requests, please email siazubuike@gmail.com. You can also reach me via call/WhatsApp on +2348063868497.

The book is also available in Lagos and Abuja at the following locations:

1. Ikeja Bar Centre, Lagos High Court, Ikeja Division. 

2. Udom Emmanuel Book stand, Federal High Court, Ikoyi. 

3. Infusion Lawyers, Vibranium Valley, 42, Local Airport Road, Ikeja. 

4.  Mr. Alex, Federal High Court, Abuja, 08035991379. 

ANNOUNCING ‘LAW PRACTICE AS A BUSINESS’, A NEW BOOK ON THE BUSINESS OF MAKING MONEY IN LEGAL PRACTICE



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