
Dover: Current market not delivering access to justice
A law firm funder with £25m in the market has launched its own alternative business structure (ABS) focused on consumer claims and also acquired data breach law firm Hayes Connor.
Heirloom Fair Legal said Hayes Connor, as well as receiving growth capital, will act as a platform to launch HFL Law, a new ABS licensed by the Solicitors Regulation Authority.
HFL Law’s goal is to make the resolution of disputes quicker and cheaper through technology and by bringing legal advice, disbursement funding and after-the-event insurance under one roof.
Heirloom Fair Legal, founded by Canadian entrepreneur Geoff Dover and Canadian lawyer Beth Hirshfeld, has provided more than £25m of funding to UK law firms since 2022 but said the long-term vision was to create a more efficient and equitable claims process for consumers.
The company will continue to provide funding to law firms and their clients and has plans to make its after-the-event insurance available to other law firms this year.
In the longer term, it intends to “close the loop” by creating an adjudication process for claims too.
Warrington-based Hayes Connor has four directors and 14 other staff. It has settled over 1,900 data breach claims since its launch in 2018, including cases against TFL, the Ministry of Justice and Tesco. It will retain its branding and offices.
Dan Thompson, director of Hayes Connor, said: “The support and infrastructure of Heirloom Fair Legal means that we can focus on implementing our strategic plans, while helping them to develop their dynamic model for consumer claims.”
HFL Law, which already has 10 staff of its own, is targeting cases involving undisclosed motor vehicle finance commissions, housing disrepair, irresponsible lending, business interruption insurance and various other undisclosed commission claims.
It said that consumers with small claims often received only 50% of the damages award, after legal fees, insurance and funding costs, but expected to increase this to 75% as a result of efficiency savings.
These included “more aligned structures for the entire claims ecosystem”, agreeing with work introducers that they would receive the majority of their compensation only if claims succeeded – “a very unusual arrangement in the market”.
HFL said it was also “working towards eradicating the common practice of kickbacks and rebates between all of those involved in claims – which the consumer ultimately pays for”.
The combination of finance and insurance would also help it reduce the onboarding time for clients by 70%, a service it would offer to other law firms too.
HFL Law said it has invested in upfront triage to weed out weaker cases, along with bespoke case management, administration and data processing tools that help lawyers to focus more of their time on advising clients.
Mr Dover, HFL Law’s managing director, said: “The current claims market demonstrates a lack of efficiency, misalignment and a high degree of complexity. It is not delivering the access to justice that people need. We are working with our originator, solicitor, insurance, expert and counsel partners to drive positive change.
“The opportunity is there for everyone to have appropriately profitable businesses while operating ethically, driving down costs, risk and complexity for the claimants, the defendants and the system as a whole. There is a better way.”
He added: “Key to this is ensuring that all parties involved are aligned in a quest to get appropriate justice for aggrieved consumers.”
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