Intervention Q&A
Why might a solicitor's firm be the subject of an intervention?
There are a number of reasons why the SRA might decide to pass a Resolution to intervene into a firm of solicitors, among them being breach of Solicitors Accounts Rules (whether involving dishonesty or not); abandonment of the practice by the solicitor; bankruptcy of the solicitor; or death or mental incapacity of the solicitor.
What is Intervention?
Intervention involves the closure of the practice by the Intervention Agent on behalf of the SRA.
What actually happens in an Intervention?
Our Intervention Team attends at the premises of the intervened firm, and takes possession of all client files, practice records and financial documentation. From that moment, the intervened firm is closed down. We also take possession of all monies in the intervened firm's bank account(s)
What happens then?
We remove all documents from the intervened firm's premises to our own intervention premises as soon as possible. We write to all clients with ongoing matters informing them of the intervention and advising them to instruct new solicitors.
What about if there is an emergency matter on the day of intervention?
Emergency matters are defined as completions (where exchange of contracts has already taken place) or Court hearings on the day of intervention or immediately thereafter. In these circumstances, arrangements can usually be made to attend to the completion or obtain an adjournment of the Court hearing.
How can I or my new solicitors get hold of my file?
You or your new solicitors will need to write to us with a request for the file signed by you, enclosing a copy of an item of identification such as a passport of driving licence. Note that if there is more than one client we shall need a written request and ID from each.
It is my file and I produced ID to the intervened firm. Why do I need to produce it to you?
Because we need to make sure that we forward your file to you, and not to anyone else.
Are there any fees for forwarding my file to me?
No. Our fees are paid by the SRA.
I believe my case is very urgent. Can I collect my file from you in person?
Yes. You should contact us to make an appointment to attend at our intervention premises at 13 Vicarage Road in Hailsham East Sussex BN26 1BD. You will need to bring a) a request for the file signed by both yourself and any joint client(s) and b) ID for both yourself and any joint client(s).
The intervened firm acted for me in the Purchase of a property. I have now been informed that they failed to register me as the owner at the Land Registry. What should I do?
You are in an exposed position legally. You should therefore instruct new solicitors as quickly as possible to complete the registration on your behalf. You will be liable for their fees, but if you had already put the intervened firm in funds, then you may be able to make a claim on the Compensation Fund for reimbursement of additional expense to which you are put. Your new solicitor will be able to advise you on these aspects.
I believe the intervened firm was storing my Will and/or my Title Deeds. What should I do?
If the intervention is still live (see above), you should contact us. We will be able to confirm whether your Will or Title Deeds were among the documents taken into possession at intervention. If they were, we will request ID from you and will then forward your Will or Title Deeds to you. Please note that if your Title Deeds are in joint names, we will require a written request and ID from each joint owner. If the intervention has been completed, all documentation in our possession will have been sent to the SRA Archive Department. You should contact the SRA Archive Department for your documentation. Their address is given below.
The intervened firm made my Will for me. Is it still valid?
The fact of the intervention does not affect the validity of any Will.
The intervened firm made my Will and the partner or partners of that firm were appointed Executors. What should I do?
Your Will is still valid, although it is likely the the clause appointing Executors will fail. You would be well advised to instruct new solicitors to consider the situation, and they may well advise you to make a fresh Will.
I owe costs to the Intervened Solicitor. Are these still payable?
Any costs rightly due to the Intervened Solicitor are still payable, but under the terms of the Solicitors Act 1974 all monies payable for costs should be paid to our firm as Intervention Agent on behalf of the SRA.
Can the Intervened Solicitor still raise fresh bills after the intervention?
All costs matters remain matters for the Intervened Solicitor to deal with, and the Intervened Solicitor is therefore permitted to raise bills after the intervention for work carried out prior to the intervention.
I have received a bill from the Intervened Solicitor. I do not agree with the bill. What should I do?
As with any solicitor's bill which is disputed, you should first write to the Intervened Solicitors to try to reach agreement on the bill. If agreement cannot be reached, you should make a complaint to the Legal Complaints Service who will decide whether of not the bill is properly payable.
Do you carry on the cases in place of the intervened firm?
No. It is not our function to continue representing the clients of the intervened firm. Our client is the SRA, and their instructions to us are strictly limited. We will not take any steps in your case, and that is why you should instruct new solicitors as soon as possible. The only exception is where emergency action is required in your case within a matter of days of the intervention.
Are you able to recommend new solicitors?
We regret we are not permitted to recommend individual firms of solicitors. We advise you to consult the Law Society website for details of solicitors in your area or with the requisite specialism:
http://www.lawsociety.org.uk/choosingandusing/findasolicitor.law
Is Mayo Wynne Baxter prepared to act for me in succession to the intervened firm?
We may in certain circumstances be prepared to act for you in succession to the intervened firm, depending on the circumstances of you individual case just as you have an entirely free choice as to which solicitor's firm you wish to instruct, we also have an entirely free choice as to whether, if you request us, we will agree to act for you. If you wish to instruct as and we do agree to act, the appropriate Department of our firm will forward formal client care documentation to you, and you will not become a client of our firm until you sign that documentation. Your case will not be dealt with by the Intervention Department, but by the Department which is appropriate to your case.
What happens to the employees of the intervened firm?
Unfortunately as the firm no longer exists they will usually be made redundant by the Intervened Solicitor. Mayo Wynne Baxter is not permitted to re-employ any former employee of an intervened firm. They may have rights in employment law against their former employer, and would be well advised to seek legal advice.
What about trade creditors of the intervened firm?
It is not part of our function to deal with the trade debts of the intervened firm. We are not administrators or liquidators. Trade creditors' rights are against the firm of person with whom they have their contract.
The Intervened Solicitor's offices are now closed. Are you able to give me the home contact details of the Intervened Solicitor?
We are not permitted to give you contact details of the Intervened Solicitor, save with the Intervened Solicitor's constent.
I carried out work for the firm in relation to one of their cases, for which they owe me money. What is my position?
You may be for example a barrister or a medical expert who has provided a report. Your rights are against the intervened fim. However there are certain circumstances where you may have a further remedy, and we refer you to this link for more informaion:
http://www.sra.org.uk/consumers/problems/solicitor-owes-money/claiming-compensation.page (see the lower part of the page)
I was a client of the intervened firm and am dissatisfied with the level of service provided to me by them. What can I do?
It is open to you to make a complaint to the Legal Complaints Service (LCS). The LCS will investigate your complaint, and if it judges that it is well founded it has power to award compensation to you of up to £15,000. Any compensation which is awarded is payable by the intervened solictor.
I believe the intervened solicitor dealt with my case negligently and as a result I lost money. What should I do?
You should seek advice from a solicitor specialising in professional negligence matters. On written request from them indicating that you have a potentially valid claim we will be able to disclose to them the name and address of the intervened firm’s insurers at the date of intervention.
At the end of the Intervention, what happens to any undistributed files, wills or deeds?
They are sent to the SRA’s Archives Department, to whom you should make direct application for any document after the intervention has concluded. Their contact details are: SRA Archive Department, 8 Dormer Place, Leamington Spa,
Warwickshire CV32 5AE Tel: 024 763 39250 Fax: 024 763 39221
Email: interventionarchivefile@sra.org.uk
What happens to the client monies held by the intervened firm at Intervention?
The client account of the intervened firm ceases to exist at intervention, and its contents form what is called the Statutory Trust Fund to which the provisions of the Solicitors Act 1974 apply. The Statutory Trustee is the SRA. It is the Statutory Trustee’s duty (which we carry out on their behalf) to ascertain the contents of the trust and work out to whom the monies belong. This involves endeavouring to reconcile the firm’s bank records with client ledgers (if available) and with client files. The time this process will take can vary widely depending on such factors as the state of the intervened firm’s records and whether all money is there which should be there. Once we have finished our work, we make a Distribution Proposal Report to the Adjudicator at the SRA, who carries out an adjudication procedure and ultimately authorises release of the monies. Typically, the entire process will take from three to nine months, depending on the intervention.
I paid money to the intervened firm. Can I get it back?
As indicated above, we carry out a lengthy investigation. We will ask you to complete a Technical Services Claim Form which we will forward to you, and ask you to return it to us in order to make your claim. The entire process is a lengthy one because we have to establish the entitlements to monies in the Statutory Trust Fund of all former clients of the intervened firm before we can make a Distribution Proposal Report to the SRA.
I do not wish to wait for the conclusion of the adjudication process. Can I obtain my money earlier?
If the intervened firm was holding money on your behalf, you may be able to obtain your money more quickly by making an application to the Compensation Fund of the SRA. We can forward to you a Compensation Fund Application Form upon request. You should then complete and sign this and forward it direct to the Compensation Fund at the address shown on the front page of the form. You should then deal with the Compensation Fund direct over your claim. If the Compensation Fund makes a payment to you, then when the Statutory Trust Fund is finally released, we will pay your share to the Compensation Fund in reimbursement of what they have paid to you. You will not be entitled to the same amount from the Compensation Fund and from the Statutory Trust Fund.
What happens if after the adjudication process is completed, it is established that there were insufficient monies on client account to pay out all clients, in other words that there was a shortfall?
In these circumstances, we are normally instructed by the SRA to pay out pro rata. So, for example, if the total monies in client account at intervention were 80%, then we would pay out 80% of each client’s entitlement. Former clients of the intervened firm will then need to make a claim on the Compensation Fund for the balance due to them.
You have mentioned two different types of claim form. I am confused. Can you distinguish between them?
The two types of claim form are: 1) The Compensation Fund Application Form – this is to make a claim on the Compensation Fund and should be sent by you direct to the Compensation Fund who will deal with you direct on your claim. 2) The Technical Services Claim Form – this is a form to make a claim on the monies taken into possession at intervention (known as the Statutory Trust Fund). This form should be returned to us.
Technical Services Claim Form – this should be completed in all cases where the former clients feel monies are due to them. A Compensation Fund Application Form should only be completed where in addition you wish to make a claim on the Compensation Fund. For more information on claiming on the Compensation Fund, please refer to the paragraph above about claiming your money earlier.
Useful addresses
Compensation Fund:-
Solicitors Regulation Authority
Claims Management
8 Dormer Place
Leamington Spa
Warwickshire CV32 5AE
DX: 292321 Leamington Spa 4
Tel: 01926 487015
Fax: 01926 487062
E-mail: claims.management@sra.org.uk
SRA Archive Department
8 Dormer Place
Leamington Spa
Warwickshire CV32 5AE
DX: 292321 Leamington Spa 4
Tel: 024 763 39250
Fax: 024 763 39221
E-mail: interventionarchivefile@sra.org.uk
Legal Complaints Service
8 Dormer Place
Leamington Spa
Warwickshire CV32 5AE
DX: 292320 Leamington Spa 4
Tel: 01926 820082
Fax: 01926 431435
E-mail: enquiries@legalcomplaints.org.uk
