You may be in the middle of buying a property, dealing with a court case, applying for a visa, or completing another important legal matter when you suddenly learn that your solicitor’s firm has been closed by the Solicitors Regulation Authority.
This is called an intervention. It can happen with little warning. Your solicitor may stop replying, the office may close, and you may be left unsure about your case, your documents, and any money held for you.
Unfortunately, given the current economic climate, closures of law firms and SRA interventions are becoming more frequent, meaning more clients are finding themselves in this unexpected situation. The situation can be alarming, but it does not mean that your legal matter has disappeared. You should act promptly to protect your position.
Written by Paul Cheuk, Solicitor
What Is an SRA Intervention?
The Solicitors Regulation Authority, known as the SRA, regulates solicitors and law firms in England and Wales. It may intervene in a firm where urgent action is considered necessary to protect clients, client money, or the public.
An intervention normally means that the firm must stop acting for its clients immediately. The SRA takes control of the firm’s client files, documents, and money. It will usually appoint another law firm, known as an intervention agent, to assist with the process.
An intervention is a protective measure. It does not necessarily mean that the SRA has already made a final finding of dishonesty or misconduct against the firm or its solicitors.
Who Does What After an Intervention?
One of the biggest sources of confusion after an intervention is understanding who is responsible for what. Several different organisations may become involved, but they each have a different role.
The SRA is the regulator. It is responsible for carrying out the intervention, protecting clients’ interests, taking control of files and money, and appointing an intervention agent. The SRA does not become your solicitor and does not continue your legal matter.
The intervention agent is the law firm appointed by the SRA to secure the former firm’s files and money. It acts for the SRA, not for you. It may help identify your file and arrange for it to be released, but it will not normally advise you, attend hearings, complete your transaction, or continue your case.
You will usually need to appoint your own new solicitor. Your new solicitor can review your case, obtain your file, advise you on your position, and continue the work. If your matter is urgent, the new solicitor may also contact the court, the other parties, and the intervention agent on your behalf.
If you have suffered financial loss because of the former firm’s negligence, there may also be a role for the former firm’s professional indemnity insurer. A claim against the insurer is separate from the SRA intervention and will depend on the circumstances of your case.
Check Your Deadlines Immediately
The most urgent issue is often not the intervention itself, but what is happening in your underlying legal matter.
You may have a court hearing approaching. You may need to file evidence, complete a property transaction, respond to the Home Office, or comply with another legal deadline. These deadlines do not automatically stop because your solicitor’s firm has closed.
If you are already involved in court proceedings, you should notify the court as soon as possible that your former solicitors have been intervened in by the SRA. You should also notify the other parties that you are looking for a new solicitor.
Where necessary, you may ask the court for an extension of time so that your new solicitor can obtain the file and prepare your case. However, an extension is not automatic. You should act quickly and explain the position clearly.
You should gather any correspondence, court orders, contracts, or notices that show upcoming deadlines. Tell the intervention agent if your matter is urgent, and contact a new solicitor without delay.
What Happens to Your File?
The SRA takes possession of the closed firm’s client files and documents. The intervention agent will normally identify the files and arrange for them to be returned to clients or transferred to newly appointed solicitors.
You may need to complete a request form and provide proof of identity. You should give as much information as possible, including the name of your former solicitor, the firm’s file reference, the type of matter, and any urgent dates.
This process can take time, particularly if the firm had many clients or its records were poorly maintained. You should not wait for the complete file before seeking advice if your matter is urgent. A new solicitor may be able to begin protecting your position using the documents already available to you.
What Happens to Your Money?
The SRA also takes control of money held by the firm, including money in its client accounts. It will examine the accounting records and try to identify who the money belongs to.
You should gather evidence of every payment you made to the firm. This may include bank statements, receipts, invoices, completion statements, and emails explaining why the money was paid.
If the records are clear and sufficient money remains available, the money may be returned. However, the process can become more difficult if the records are incomplete or there is less money in the account than should have been held.
Can You Claim From the SRA Compensation Fund?
If your money cannot be returned, you may be able to apply to the SRA Compensation Fund. The fund may assist where money has been taken, misused, or not properly accounted for by a regulated solicitor or firm.
Payment from the fund is not automatic. The fund is discretionary, and eligibility rules, evidence requirements, time limits, and financial limits apply.
The fund also does not cover every type of loss. For example, it may not compensate you for all losses caused by delay, inconvenience, or the need to instruct another solicitor.
You should keep clear evidence of the amount paid, the reason for the payment, and the loss you have suffered.
What If You Have Suffered Further Loss?
The loss of money held in a client account is not the only possible problem. You may also suffer loss because the former firm missed a deadline, failed to complete work properly, or gave incorrect advice.
In those circumstances, you may need to consider a professional negligence claim against the former firm. The claim may be dealt with by the firm’s professional indemnity insurer.
You will need to show what the former firm did wrong, what should have happened instead, and what financial loss was caused. The fact that the SRA intervened does not by itself prove that the firm was negligent in your particular matter.
Independent legal advice may therefore be needed to assess whether such a claim has reasonable prospects.
Will You Have to Pay Again?
In some cases, the new solicitor may need to repeat work because the original file is incomplete or has not yet been released. This can lead to further legal costs.
Whether those costs can be recovered will depend on why the additional work became necessary. There may be a potential claim against the former firm or its insurer, but this will require separate assessment.
You should ask the new solicitor to identify what work has already been completed and what must now be done again. This can help avoid unnecessary expense.
Final Thoughts
Learning that your solicitor’s firm has been closed can be extremely unsettling. You may be worried about your case, your money, and important documents. The most important thing is not to remain passive.
Check your deadlines, notify the court and the other parties where necessary, contact the intervention agent, gather your own records, and appoint a new solicitor if your matter is continuing.
At Lisa’s Law, we assist clients whose legal matters have been disrupted by the closure of another firm. We can assess the urgency of your case, contact the relevant intervention agent, help recover your file, and take steps to protect your position while the transfer is being arranged.
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