Liverpool based Consumer Claims firm McDermott Smith Law collapsed last week leaving clients unsure of their claim’s future.
Litigation funder Fenchurch Legal instigated the proceedings, leading to the joint appointment of administration firms Quantuma Advisory and RSM UK Restructuring Advisory. The latest abbreviated accounts for the year to 31st March 2023, showing funds due to creditors upwards of £37.5 million.
The SRA, who carried out the intervention, has appointed Stephensons Solicitors LLP as Intervention Agents in this case. Their role is to attend and collect all client files, paperwork, and electronic files from the premises for safe keeping.
About McDermott Smith Law
McDermott Smith handled a number of consumer claim matters, including business energy, mis-sold motor vehicle finance (PCP Claims), personal injury and housing disrepair.
Their Motor Finance claims were financed by Katch Fund Solutions, who were recently in the news having another of their funded firms, SSB, collapse in January leading to almost 200 redundancies. Katch had provided £63 in funding and made a deal with the administrators to buy the cases it was funding.
What will happen to McDermott’s cases?
Although appointed by the SRA in the above capacity, Stephensons has no responsibility to creditors of McDermott Smith, nor will they be managing client cases following the firm’s collapse.
Any clients who have housing disrepair or motor finance cases ongoing with McDermott Smith are free to choose new representation, and provided authorisation is given Stephensons will forward whatever files are recovered.
When a firm ceases trading at short notice it can be a disaster for former employees and clients alike. If you have been caught up in this collapse and are in need of immediate representation, contact us on 0161 840 1035 today, or complete the quick contact form below for a no-obligation chat.
