PI cover absence strikes down the first Solicitors’ practice
Harris Cartier Administration is First of many
Harris Cartier, a well respected boutique legal firm in London, has become the highest profile Solicitors Firm to enter into Administration as a result of the Professional Indemnity renewal problem for the legal profession on 1 October.
They were one of the 175 firms known to the SRA for not having cover in place and had been having talks about an orderly wind down of their affairs. Thanks to Neil Hudgell and Gordon Dadds the clients of the firm were all provided with continuity of care by being transferred to their firms after they bought those cases through the Prepack Administration.
As the 90 day cover period for firms who did not, or could not, renew their PI cover at the start of October has begun its countdown, there could be a large number of law firm prepacks over the coming months.
Kevin Lucas of Lucas Johnson and Administrator of a number of law firms, including most notably Blakemores Solicitors, said “We are seeing a large number of firms continue to be in denial about the problems they are facing. Not only are they putting their financial future in jeopardy by not seeking early advice and preparing for either an orderly wind down or rationalisation of the business, which could help obtain PI cover, but they are seriously putting at risk their future in the profession as the SRA place a high expectation on solicitors in reporting their problems under their outcome focussed regime and dealing with those problems appropriately. Failure to do so can result in significant regulatory problems going forward”.
Whatever your specialism or whatever your situation, Lucas Johnson are specialists in protecting the financial and professional future of Solicitors and their practices, even if this involves an Insolvency procedure. Consulting us early can result in a much better outcome for all stakeholders of the firm, from clients to partners. Call us on 0161 929 8666 or 0151 236 1924 for a confidential discussion.