When the lawyer's conduct fell below the standard of the reasonable lawyer and that failure caused you a loss. An error of judgment made after proper inquiry is not enough, and neither is a disappointing result. The practical test is whether a competent lawyer in the same position would have acted differently, and whether you would have been better off had he done so.
It means that the court reconstructs the original matter in order to decide what would have happened had the lawyer acted properly. If the underlying case would have failed in any event, the negligence caused no loss. Where the original outcome cannot be reconstructed with confidence, damages may instead reflect the chance that was destroyed.
The ordinary limitation period is seven years. In claims against lawyers the discovery rule frequently postpones the start of that period to the moment the client learned, or ought to have learned, of the failure. Because the calculation is often disputed, the sensible course is to take advice early rather than to rely on it.
Formally the lawyer, but in practice most Israeli lawyers carry professional indemnity cover and the negotiation is conducted with the insurer. The terms of the policy, and in particular the basis on which it responds to a claim, often matter as much as the merits.
Report the matter to your insurer immediately, in accordance with the policy, because late notification is itself a ground on which cover is refused. Preserve the file as it stands and do not reorganise it. Do not answer the substance of the allegation before the insurer has responded, since an early letter written in irritation tends to become the central exhibit.
Where no written agreement exists and no oral agreement is proved, payment is set by reference to the economic value of the work actually performed. The court weighs the scope and complexity of the work, the seniority of the lawyer and the standing of the firm. The absence of a written agreement generally operates against the lawyer, who carries the burden of proof.
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