Michelle Weir was appointed as joint liquidator for Thornleys Solicitors Limited on 15 October 2013.  Her appointment is indicative of the severe problems facing many legal practices at the moment.  Extensive regulation, while its intentions are clear and proper, cause many small and niche practices significant problems.  Also changes in Legal Aid have caused significant problems for some criminal law practices.

Michelle Weir commented, “Insolvency processes for law firms can sometimes lead to an intervention from the Solicitors Regulation Authority (“SRA”) in circumstances where it has concerns.  I am pleased to say, we have been able to ensure the SRA is satisfied and there has been no intervention”

The Practice had been working towards a merger or acquisition but was ultimately unable to secure a deal.  Managing director, Tony Pearce, has cited increased competition and changes to the legal profession generally as the main reasons for the downturn in the practice’s fortunes.

Some of the Practice’s staff were retained for several weeks to ensure client files and money held in client accounts have been dealt with in line with the SRA’s compliance plan.  All live client files have now been transferred to alternative local firms and client money has been reconciled.  The Practice’s staff have assisted with this process diligently even though they were losing their jobs.

The 4,000 – 5,000 wills and deeds which Thornleys held were transferred to another local firm just before liquidators’ were appointed.  Anyone who stored such documents with Thornleys can expect to be contacted in due course by Wolferstans Solicitors.

Julian Brailey from Lameys’ Plymouth office commented, “Law practices should have secured professional indemnity insurance at the beginning of October.  Those (like Thornleys) which did not, have a further 90 days to do so, or cease trading.  The clock is ticking and, unfortunately, I fear the writing is on the wall for some practices in the region.  The key to a successful outcome, compliance with the SRA and ensuring more options are available is to speak to an insolvency practitioner early and before things become terminal.”