Controversial miners’ compensation firm goes into administration


closed

End of the road for Raleys

Raleys, one of the law firms most strongly criticised for misconduct during the miners’ compensation scandal, has entered administration.

A notice on the firm’s website states that national corporate recovery specialist Begbies Traynor was appointed administrator last Friday, with Leeds law firm Ison Harrison handling all existing client matters.

Raleys, based in Barnsley, Yorkshire, had two partners, Carol Gill and John Welch, 14 ‘legal specialists’ and 22 support staff.

Ms Gill was one of six Raleys partners suspended or fined by the Solicitors Disciplinary Tribunal (SDT) in 2009 for misconduct in the way the firm handled claims from ex-miners suffering from vibration white finger under the government compensation scheme. Mr Welch did not become a partner until that year and was not involved.

The SDT suspended senior partner Ian Firth for four years, and his colleagues David Barber for two years and Jonathan Markham for six months.

Ms Gill, Jim Gladman and Katherine Richards, who had already retired, were fined £10,000 each.

The partners were ordered to pay the costs of the hearing, starting with an interim payment of £300,000 within 28 days. The regulator estimated its costs at over £800,000.

The tribunal said that Mr Firth had taken £9.9m as his share of profits from the firm between 2003 and 2005, and Mr Barber, the only other equity partner, £7.2m.

Chairman David Leverton said statements made by the partners were “argumentative and self-justifying and give an impression that the respondents cannot understand why anyone should think that they have done wrong.”

More recently, the Court of Appeal in May 2014 upheld a ruling that Raleys was negligent in its handling of a claim under the government compensation scheme.

It backed the decision the previous July by HHJ Gosnell in Leeds County Court that Ronald Barnaby had abandoned part of his otherwise successful claim as a result of negligent advice.

Tags:




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog


How could instant messaging transform your law firm?

The vast majority of law firms have no instant messaging capability. In what other sector is that the case? Most stick to traditional communications channels. In 2021 there’s no good reason for that.


From cost saving to revenue making – post-pandemic commercial success

Commercial success is the driving force for ambitious law firms and it should come as no surprise that many have a renewed determination to re-evaluate their businesses in the wake of Covid-19.


Success in-house – what people don’t tell you about how to get there

TV dramas have made many people think that the legal profession consists of heroes (or villains) in high-flying firms or public prosecution. In reality, nearly a quarter of solicitors work in-house.


Loading animation