Negligence claims pile up against collapsed law firm


Kurtz: Loss of opportunity

National law firm Hugh James is acting for former clients of Sandstone Legal, which specialised in financial mis-selling claims, over potential professional negligence action.

It appeared that “a number of clients” had Plevin claims with real prospects of success that have now become “time-barred or otherwise prejudiced whilst they were with Sandstone Legal”.

This could mean negligence claims against its insurer for loss of opportunity.

Plevin claims concerned undisclosed commissions in the sale of payment protection insurance –

The now-defunct Manchester-based firm encountered significant financial and operational difficulties during late 2024 and early 2025.

Last year, a judge strongly criticised Sandstone’s boss, Andrew Settle, for giving false evidence and trying to force through a prepack administration sale in favour of his own newly incorporated company. He denied misleading the court.

Instead, Sandstone’s caseload was transferred to four law firms and its other assets sold to a litigation funder.

Hugh James said: “While those events are distinct from the merits of individual claims, they coincide with widespread concerns from former clients about delays, lack of progression, and missed opportunities to pursue claims.”

It is acting for clients whose claims became time-barred while with Sandstone Legal, or were otherwise affected by delays, inactivity, or lack of advice, and clients whose files were transferred mid-claim with no meaningful progression.

Partner Erich Kurtz said: “We are already assisting former Sandstone Legal clients who may have lost the opportunity to pursue financial mis-selling claims due to the way their cases were handled.

“Our focus is on providing clear, independent legal advice to individuals who are understandably uncertain about their position following Sandstone’s collapse. Where appropriate, we are assessing potential professional negligence claims on a loss of opportunity basis.”

We reported earlier this month that Mr Kurtz had settled the negligence claims of around 130 former clients of SSB Law against the collapsed law firm’s insurer.




Blog


How ELD NextGen will improve employers’ liability tracing

The Employers’ Liability Tracing Office is continuing work towards the launch of ELD NextGen, the next generation of the employers’ liability database, in early 2027.


Fifteen years on: Lessons from ABS reform

Fifteen years ago this month saw the very first alternative business structure. At the time, the prospect of non-lawyers owning law firms was dubbed ‘Tesco Law’.


Hybrid working and client money controls – be aware of the risks

For legal finance teams, remote working has changed how information moves, how approvals are obtained and how colleagues communicate.


Loading animation