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Has your solicitor ceased trading suddenly? Personal Injury expert, The sudden closure of a law firm is distressing for any client, but for those in the midst of a personal injury claim, it can be especially overwhelming. The recent and unexpected closure of PM Law has left its clients wondering what will happen to their cases, medical records, and the compensation they are owed.
If you have been affected by a firm ceasing trading without warning, it’s vital to act quickly to protect your claim. Here is my guide to the immediate steps you should take and the potential implications for your claim.
“I genuinely don’t know how I would have coped without all your help and support. You are not just a great solicitor, you are magnificent, and I cannot thank you enough.”
The role of the SRA and Law Society
The Solicitors Regulation Authority is the regulatory body responsible for solicitors in England and Wales, whereas the Law Society is effectively the solicitors’ profession’s union.
When a firm closes abruptly, the SRA steps in to protect clients’ interests. This is known as an “intervention.” The SRA will typically appoint an “intervention agent” (another law firm) to collect and safeguard the closed firm’s files and any funds held in the firm’s client account.
While the SRA ensures your documents are safe, the intervention agent is not necessarily there to progress your claim. They are a temporary custodian. Both the Law Society and the SRA advise that the priority for any affected client is to instruct a new solicitor as soon as possible.
Choosing the right successor
You are not obliged to stay with the firm the SRA appoints as an agent. In fact, this is an important opportunity to research and find a specialist firm that truly understands your needs. If your life has been derailed by your injuries or medical condition, you need to find a specialist firm.
For twenty years, our personal injury team at BLB Solicitors has specialised in complex cases involving chronic pain conditions such as Complex Regional Pain Syndrome (CRPS), Fibromyalgia (FM), and Functional Neurological Disorder (FND). These cases require a high level of expertise and a forensic approach that generalist high-street firms usually don’t possess.
PM Law
I have already been instructed by two individuals whose claims for CRPS and life-changing injuries have abruptly come to a halt as a result of PM Law ceasing to trade. We are already in the process of obtaining their files, collating documents, and contacting the Defendant’s representatives. Both have kindly commented that they have received more information and feedback in the past couple of weeks, and that I have shown more interest in their claims than PM Law has over several years.
Critical repercussions to consider
The closure of a firm like PM Law creates several urgent issues that require professional attention:
- Limitation periods: Every personal injury claim has a “limitation period” (usually three years from the date of the accident). If your solicitor closes shortly before this deadline and your claim hasn’t been issued in court, you could lose your right to compensation in the claim.
- Imminent court dates: If you have a trial, a CMC (case management conference), or an assessment of damages hearing scheduled, you need a new solicitor to apply to go on the court record immediately to avoid the risk of your case being struck out.
- Interim or final damages: If your previous solicitor was holding interim payments or final settlement funds when they ceased trading, these funds should be protected by the SRA. However, accessing them requires formal communication with the intervention agents.
- Expert evidence: If you are waiting for a medical report or have a Joint Settlement Meeting (JSM) planned, these milestones will stall. A new solicitor will need to contact the experts and the defendant’s insurers to maintain the momentum of the case.
- Funding and ATE insurance: Your “No Win, No Fee” agreement and any After the Event (ATE) insurance policies will need to be reviewed and, if necessary, transferred to ensure you remain protected against legal costs.
How to move forward
The first step is to contact a specialist firm of solicitors. They will help you sign a “Letter of Authority,” which authorises them to track down your file with the SRA or the intervention agents.
If you have been affected by the closure of PM Law or any other firm, don’t wait for the SRA to contact you – proactive action is the best way to ensure your claim remains on track.