SRA Returns £9M to PM Law Clients After Closure
After the recent closure of PM Law, £9 million has been returned to its former clients. The Solicitors Regulation Authority (SRA) stepped in to manage the firm’s affairs due to concerns over client funds and unresolved cases.
Overview of PM Law’s Closure
PM Law, headquartered in Sheffield, was shut down abruptly after it displayed closure signs at its offices across various regions including Yorkshire, Cumbria, Derbyshire, and Berkshire. The SRA intervened one month ago, and since then, over 250 compensation applications have been filed.
Compensation Details
- £9 million has been returned to clients.
- £5.6 million was disbursed from client money held by PM Law.
- £3.69 million came from the SRA’s compensation fund, supported by contributions from other law firms.
The SRA prioritized urgent cases, processing 38 payments primarily related to property transactions at risk of collapse.
Investigation and Client Outreach
A potential fraud investigation is underway, focusing on the misappropriation of client funds. The SRA has reached out to over 17,000 clients with instructions on how to proceed with their legal matters.
Clients’ legal issues range from residential conveyancing to personal injury, employment, matrimonial cases, and civil litigation. To date, more than 3,600 files have been released, but many clients are encouraged to seek new legal representation rather than wait for access to their original files.
Moving Forward
The SRA remains committed to managing the compensation process effectively. They emphasized the complexity of the situation and assured clients that all applications would be processed fairly. The authority requests patience as it navigates these challenging circumstances.
