PII: Solicitor thought run-off cover sufficed
A solicitor who did not shut down his law firm properly, continuing to deal with client matters even though he was not insured, has been rebuked by the Solicitors Regulation Authority (SRA).
Gareth Walford Williams accepted the sanction in a regulatory settlement agreement with the regulator, saying he wrongly thought he was covered by run-off cover.
His former firm, Gareth Williams Solicitors in Birkenhead, failed to renew its professional indemnity insurance for 2022/23. This meant that, on 1 October 2022, the firm entered the extended policy period (EPP) and had to close before 29 December 2022 if it could not obtain insurance.
Mr Williams failed to do this but did not close the firm as required. He continued to deal with two live client matters after this date and also received seven payments of damages into the firm’s client account totalling £21,269, relating to four separate matters.
These were all eventually dealt with and the firm finally closed on 22 March 2023.
Mr Williams admitted breaches various rules and in mitigation said he “wrongly believed that the run-off cover which the firm had obtained would allow him to deal with live client files and monies after 29 December 2022”.
He added that the breaches were for a limited period of time and there were no adverse consequences for clients.
He had co-operated with the SRA and indicated that he intended to retire soon – he currently works at KLS Law in Warrington.
The SRA said a rebuke was appropriate. “The trust that the public places in solicitors and the provision of legal services would be undermined if they became aware that a solicitor continued to operate a firm without professional indemnity insurance.
“Mr Williams was an experienced solicitor and should have known that he was unable to deal with live client matters and client monies after the expiry of the EPP.”
