Sheffield-based SSB Law’s administration has triggered a widespread legal and financial crisis.
- The firm, specialising in ‘no win, no fee’ claims, was hit by significant financial woes.
- Thousands of former clients now face substantial legal bills due to failed claims.
- The Solicitors Regulation Authority has launched an investigation into the firm’s operations.
- Calls for government intervention have intensified amidst fears of severe financial impacts on affected clients.
In early January, SSB Law, a prominent Sheffield law firm, ceased operations and entered administration, creating shockwaves across the West Yorkshire and Lancashire regions. The firm, which focused on compensation claims under a ‘no win, no fee’ arrangement, operated in multiple areas, including defective cavity wall insulation (CWI), medical malpractice, personal injury, and data security breaches. SSB Law’s collapse came after several CWI claims failed, leaving former clients with unexpected legal bills and sparking national concern.
Recent reports reveal that SSB Law accumulated debts nearing £200 million owed to six litigation funders. FRP, the advisory firm overseeing the administration, noted the firm’s ‘financial challenges’ and confirmed its cessation of trading. Despite handling approximately 43,000 cases, SSB Law’s operational expenses were disproportionate to its caseload, resulting in financial turmoil. As a consequence, nearly 200 employees were made redundant, and former SSB Law staff were assisted by FRP in applying to the Redundancy Payments Service.
The human impact of SSB Law’s crisis is profound. A spokesperson from Hugh James, a law firm now representing many of SSB Law’s former clients, stated that these individuals face significant legal bills due to cases being lost, struck out, or withdrawn without fault on their part. With over 1,500 failed CWI claims, ex-clients are now burdened with legal costs averaging £35,000, well above the regional median salary. One former client, Jamil Zafar, expressed his distress, stating, “Being a taxi driver, how do I pay this amount of money? It has broken me from inside.”
The situation has prompted individuals like Qurrah Ahmed to take action; Ahmed set up a support group for victims, highlighting on social media how SSB Law seemingly targeted vulnerable clients. The mental health impact on these individuals is severe, with many experiencing anxiety and distress over their financial predicament. Burnley MP Antony Higginbotham has raised these concerns in Parliament, urging for swift action to alleviate the affected clients’ financial burdens.
In response to the crisis, the Solicitors Regulation Authority (SRA) has initiated an investigation into SSB Law’s operations. The SRA aims to address the growing concerns regarding the regulatory framework governing consumer claims firms, and whether current safeguards are sufficient to protect clients from similar outcomes in the future. Erich Kurtz from Hugh James’s financial mis-selling team highlighted the firm’s process to assist affected clients in negotiating reduction of adverse costs and pursuing professional negligence claims against SSB Law’s indemnity insurers.
Efforts to address regulatory failings and provide relief to those impacted by SSB Law’s downfall are crucial to preventing future crises.
