A Solicitor firm suffered a £2m loss from its client account due to fraud.
The insurers failed to indemnify the claim, citing concerns with continuing exposure to loss and potential liability on the part of the solicitor’s bank. The solicitor firm was threatened with intervention by the SRA. The solicitor firm’s client account was frozen by the SRA and its ability to transact business was severely compromised as a result. The solicitor firm was brought to the brink of collapse.
Brunel employed various tactics on behalf of the firm including:
- Representations with the insurers based on the SRA minimum terms and Participating Insurers agreement
- Liason with Law Society and SRA
- Liason with a number of other Participating Insurers regarding their reactions to similar situations/interpretation of cover under SRA minimum terms
- Liason with a leading market commentator and risk manager regarding the situation
- Daily consultation with the solicitor firm in relation to various statements & proposals made by insurer, proposed recovery action with client account bank, and the lateral efforts.
- Calling for adjudication between the solicitor firm and Participating Insurer
The insurers paid the claim.