Kurtz: Broader issues still live
Around 130 former clients of SSB Law have settled their negligence claims against the collapsed law firm’s insurer, their solicitor has revealed.
The SSB Law Victims Support Group welcomed the news but said the fundamental issues around the firm remain unresolved.
Erich Kurtz, a partner in Hugh James’s Cardiff office, explained that the clients – all of whom had cavity wall insulation claims – had argued that SSB pursued their claim with no or insufficient merits from the outset, leading to adverse costs, and/or conducted the claim in such a way as to put client in breach of the after-the-event insurance which would have indemnified against those costs.
As a result, those clients alleged that they faced adverse costs orders, distress and inconvenience, and reputational damage caused by county court judgments against them and charging orders on homes.
Mr Kurtz said: “We can confirm that these claims have now settled. The terms of settlement are confidential.
“For our clients, this ends an extremely difficult and distressing chapter in their lives. It is important to remember that at the heart of this matter are individuals and families who placed their trust in the legal system.
“While this settlement concludes these claims, it does not diminish the broader issues that have been publicly identified, and which continue to affect others.”
In all, SSB had around 1,700 clients with cavity wall claims; other firms acting for them and contacted by Legal Futures have not yet commented on whether they too have settled claims.
A spokeswoman for the support group said the settlements were welcome.
“We understand the settlement agreements are confidential, so individuals are not permitted to discuss the terms. As a group, we cannot comment on the detail of outcomes, and it would be wrong to assume that these settlements resolve the wider issues.
“This represents only a fraction of those affected and it does not fix the homes. Thousands of former SSB clients remain in properties damaged by failed cavity wall insulation, facing ongoing uncertainty.
“While these settlements may address certain financial liabilities for some individuals, they do not amount to accountability, nor do they address the systemic regulatory failures identified in the Legal Services Board’s review or the remediation still required in thousands of homes.
“The underlying issues remain unresolved.”
It is understood that the Solicitors Regulation Authority has written to former SSB clients to seek evidence to support prosecutions of former SSB directors.
