PR under fire — what happens when clients sue?

Like all businesses, public relations (PR) firms and consultants face a wide range of potential claims. Client complaints are often the first sign of trouble. Many stay low level — for example, fee‑related disputes where a client doesn’t want to pay and uses a ‘complaint’ as leverage. In those cases, the issue is often little more than a debt‑collection exercise.

However, not all complaints stay that way. When concerns escalate or when a client feels let down, misinformed or exposed, those early grumbles can quickly develop into something more serious and PR firms can find themselves facing allegations that go well beyond dissatisfaction with fees.

Here, Glyn Lancefield from our litigation team explores the key types of claims that can follow when an initial complaint begins to escalate and outlines some practical steps that PR firms can take to manage the risks.

Professional negligence & breach of contract claims 

Professional negligence claims are usually thought of as being against professionals providing more ‘traditional’ services such as lawyers, accountants and surveyors. However, just like other service providers, PR firms owe a duty of care to their clients. They may therefore be subject to a professional negligence claim if their work falls below the standard that could be expected from a ‘reasonably competent’ PR firm.

It may be hard for a court to assess that standard in a PR setting because the advice that PR firms provide is often more nuanced, subjective and subject to open textured considerations than in other sectors. On the face of it, this means that whatever advice was given could fall within the scope of reasonable competence. However, in reality, the legal risks may be higher for PR firms because PR advice may be more at risk of differing views about where the line of reasonableness should be drawn. Faced with any given PR crisis, experts sometimes disagree.

The relationship between a PR firm and its client is contractual and may also give rise to express obligations as well as an implied duty to provide services with reasonable care and skill. PR firms therefore face a breach of contract claim if their work falls below that standard, such as if an error or omission in the drafting of a press release leads to loss or damage. For example, should a statement actually have been given to a journalist making enquiries? The answer may not be as straightforward as it first appears. 

Client dissatisfaction & crisis management risks

Disgruntled clients can sometimes instruct lawyers to send letters if the client’s profile isn’t improved as much as they were hoping for or, even worse, if they feel that a reputation crisis has deepened due to ‘bad’ PR advice. The client’s own involvement or culpability can be conveniently overlooked.

Crisis management usually requires ‘on the spot’ advice to deal with an immediate and still evolving situation, so the risk of mistakes happening is high. While risk registers and plans can be important, the real issues are often unexpected. The risk is also increased by the environment in which PR advisers are working, a landscape that’s constantly changing to reflect the trends of social media and meet the appetite of the 24-hours a day news cycle. 

Data protection & breach of confidence claims

PR firms also often handle their clients’ most sensitive commercial and personal information, giving rise to the risk of a data breach or breach of confidence claim if that information isn’t robustly protected or is used in ways that the client may not anticipate.

Alternative routes for complaints

Clients may choose to reduce their own legal spend and avoid a risk of adverse costs by pursuing a grievance through a regulator or trade association rather than through the courts. Doing so may even give a client a ‘dry run’ to obtain an initial opinion on their dispute before they decide whether to refine their arguments in a court claim where the costs and risks are higher.

Practical tips for PR firms

1. Agree and record the retainer at the outset of the relationship with the client so that the scope of work being carried out is clear and expectations are managed.
2. Keep contemporaneous records of advice and the reasons for it — even in a fast‑paced environment, good notes are essential in any dispute.
3. Involve lawyers where needed, whether to draft contracts, update terms and conditions or advise on media strategy and crisis management to ensure that all legal bases are covered.
4. Try to avoid disputes escalating if possible. Having a complaint policy (and following it) helps to manage client concerns, control legal threats and avoid situations where you might accidentally make admissions, offer settlement too early or weaken any potential defence.
5. Remember that letters of claim must meet certain legal requirements — not all do.
6. Maintain appropriate professional indemnity insurance. Whether a client’s complaint needs to be reported will depend on the terms of the policy. 

Talk to us

Our award‑winning litigation team supports PR firms at every stage of the complaints and claims process. We help clients to put the right measures in place to reduce the risk of disputes arising, manage complaints before they escalate and defend any claims that may ultimately be brought.

Talk to us by giving us a call on 0333 004 4488, sending us an email at hello@brabners.com or completing the contact form below.