If a UK law firm closes down while handling your ongoing matter – perhaps a Will, your house purchase, a family member’s probate or a litigation matter – it can be disruptive, stressful and upsetting. 

However you do still have options, and there are clear regulatory protections in place.

Beware scammers

First of all, a word of caution. Scams increase during firm closures and impersonation attempts are common, so do check all correspondence you receive relating to the closure and confirm contact details separately yourself. Do not rely on email alone for bank detail changes.

Check whether the closure is voluntary or a Solicitors Regulation Authority (SRA) intervention

Law firms may close voluntarily (eg a lone practitioner may decide to retire, or a firm may become insolvent) or they may be shut down suddenly by the Solicitors Regulation Authority (SRA).

Voluntary closures

You should be made aware of this well in advance so arrangements can be made for your files to be transferred along with any client funds held for you. Your firm should tell you where your files, or documents such as original Wills, will now be stored.

Sudden closures, abandonment

These trigger SRA involvement — they may intervene and take control of all client files and money, including client funds.

If you find out that your SRA-regulated firm has unexpectedly closed, please contact the SRA immediately to let them know.

The SRA may appoint an intervention agent to protect clients’ interests. The intervention agent takes control of the firm’s documents, safeguards client funds and may transfer documents to other solicitors.  

The SRA has information on firms it has closed down.

What happens to your file and any client funds?

The SRA or the intervention agent will normally contact you, but you can also proactively contact them.

Funds

Client funds are likely to be frozen initially so monies can be reconciled, with the intervention agent later releasing them to you.

If you have suffered a loss, consider making an application to the SRA Compensation Fund. You can find out more here about eligibility criteria and examples.

Fees already paid

If you paid in advance and the work has not been completed, check your contract regarding refunds. You can then contact the intervention agent to claim.

Files

Depending on the type of closure, an intervention agent my arrange the transfer of your files either to you or to a solicitor you appoint. (Be aware that all clients on the matter must agree to this.)

Beware deadlines

Bear in mind that even if your firm closes unexpectedly, property purchase completion deadlines, court dates etc remain. You should as a matter of priority find a new solicitor for your matter.

Appointing a new solicitor

If required, you should aim to do this as soon as possible. They can:

• Contact the intervention agent
• Request your file
• Check deadlines and stabilise your case
• Handle compensation fund applications if needed

Your action checklist

There’s quite a lot to think about, so consider working through this handy checklist, to make sure you are protected and deadlines are met:

• Check the SRA website for closure notices
• Contact the SRA or intervention agent to locate your file, and any funds
• Appoint a new solicitor
• Ensure deadlines are protected
• Verify all communications sent to you for fraud risks
• Retrieve funds or begin claims if required

At Mercers we understand how stressful it is having to find a new solicitor at short notice when your existing firm has closed. Contact us for assistance with residential property sales and purchases, Wills, trusts, probate and litigation.