Clients previously with SSB Law face further turmoil as their cavity wall insulation claims are transferred once again, following the closure of the law firm that initially took over their cases.
In a recent development, JMR Solicitors, the law firm that inherited the cavity wall insulation (CWI) cases from the defunct SSB Law, has announced its decision to exit the sector. This decision has resulted in the transfer of these case files to Hugh James, leaving clients with merely two days to find alternative legal representation if desired.
The Solicitors Regulation Authority (SRA) acknowledged the distress caused by the abrupt notice from JMR, which was insufficient for making informed decisions regarding legal representation. However, it confirmed that despite these constraints, clients retain the right to retrieve their files and opt not to proceed with Hugh James.
The underlying issues trace back to the after-the-event (ATE) insurance policies related to failed CWI claims managed by SSB. These failures have resulted in successful defendants and insurers enforcing cost awards against the clients, many of whom find themselves unable to pay. This has drawn attention on a national level, with Members of Parliament raising concerns in the House of Commons.
Adding to the confusion, clients have received offers from an insurer to discontinue pursuing costs if the clients assign their claims against SSB. Despite previously expressing confidence in pursuing professional negligence claims, JMR has not provided a clear reason for its withdrawal from these cases.
Hugh James has communicated openly with former JMR clients, advising them to seek independent legal advice, especially with ongoing proceedings. It maintains that many of these clients have viable claims for professional negligence against SSB due to inadequate handling of their CWI cases. Their commitment is to assist clients in mitigating adverse cost liabilities and exploring legal avenues for compensation.
An open letter from a member of the SSB Law Victims Group highlighted the unreasonable time frame given to clients to make critical decisions about legal representation, reflecting a shared sentiment of panic and confusion among claimants. The lack of cost-benefit analysis and clear information on claim risks has left clients in an uncertain position about their legal standing.
The financial implications are significant, with SSB owing its funders over £200 million, including a substantial amount to Opportunity SA, the largest funder. The complexity of the financial and legal arrangements is apparent, as Opportunity seeks to enforce its rights to claim under the ATE policy and obtain case files without client consent.
The SSB Law Victims Group, gathering substantial public support with a petition, is urging the government to enact measures to restore homes affected by CWI issues and address the legal financial burdens on victims. Their demands also include a thorough investigation into the failure of trade and legal sectors in this matter, proposing regulatory changes to protect homeowners in the future.
The ongoing transfer of cavity wall claims highlights significant challenges within the legal system and brings attention to the need for regulatory reforms to protect vulnerable clients facing complex legal battles and financial burdens.
