PM Law closure: Solicitors Regulation Authority starts to make emergency payments
The Solicitors Regulation Authority has begun making emergency payments for “those with the most urgent need” following the unexpected closure of a Yorkshire-based law firm.
On February 2, clients of the Sheffield-headquartered PM Law group found that its offices across Yorkshire and Cumbria had been shut without warning. According to a recent post on Linkedin, PM Law Group, which was formed in 1990, had grown to a combined group of more than 600 people across a number of specialist businesses.
The SRA said in a statement: “We were alerted to the unexpected closure of PM Law Ltd and associated firms on Monday 2 February. We understand that this is concerning and distressing news for all involved, not least those that had on-going matters with the firm. We launched an immediate investigation into PM Law on 2 February and contacted the firm to make sure client interests are protected properly. As a result of our initial investigation, we took the decision on 4 February to intervene into the group of firms.”
So far the SRA has attended 24 offices belonging to PM Law in Yorkshire, Cumbria, Berkshire and Derbyshire and appointed Gordons LLP as its intervention agent.
"We have taken possession of all files and money (including client’s funds) held by the firm. This includes accessing their case management systems, which has identified tens of thousands of live cases. We have contacted clients relating to more than 100 urgent matters, primarily relating to litigation and conveyancing cases.”
The SRA has started reviewing more than 50 applications to its compensation fund and has begun making emergency payments for those with the most urgent need. It has notified more than 100 courts across the country about the firm’s closure and the impact this could have on potentially urgent litigation matters.
Paul Hastings, SRA Director of Client Protection, said: ‘We have been working hard to protect the people impacted by the closure of PM Law.
"Our intervention agent has identified tens of thousands of live cases, many of which involve sensitive and important matters such as personal injury claims, house sales, and probate issues.
‘We appreciate that this may be a stressful time. Clients can rest assured that our agents are diligently working through these files to identify and contact them.
‘Our goal is to get to everyone as soon as possible, prioritising those in most urgent need. We have, for example, made several emergency grants to allow clients to move house when they had already exchanged contracts.
"Our investigation into PM Law continues. We are unable to disclose information about an on-going investigation but are working quickly to gather all the relevant information.”
The statement added: “We encourage those who had on-going matters with PM Law and its affiliates to access further information and support on a dedicated part of Gordon LLP’s website. We have also provided initial guidance for those impacted.”
More information can be found at: https://www.gordonsllp.com/pmlaw/ with further guidance at https://www.sra.org.uk/news/news/pm-law-clients/.