Five solicitors sanctioned by SDT for failing to close businesses properly

Law firms must have an exit strategy when winding down practices, lest they fall foul of closure procedures, the Solicitors Regulation Authority (SRA) has warned.

The advice comes following successful hearings against several solicitors at the Solicitors Disciplinary Tribunal (SDT). The tribunal sanctioned all five solicitors in April with fines totalling £12,000, plus costs of almost £42,000.

Solicitor David Alan Eager was fined £1,000 and ordered to pay £13,000 costs.

John Bryon Sampson and Angela Susan Marshall were fined £2,500 and £1,000 respectively and ordered to pay £11,000 costs.

In addition, Justin Philip Huntly Nelson was fined £2,500 and ordered to pay £5,200 costs.

Meanwhile, Ian Robert Gannicot received a £5,000 fine and was ordered to pay £12,770 costs.

All the cases were brought by the SRA where the firms failed to follow the correct process for closure.

Gordon Ramsay, SRA director for legal and enforcement, said: 'Firms have professional responsibilities, and those responsibilities remain when a firm is closing down. The need to think about the impact on clients becomes more important when the firm faces closure, voluntary or otherwise.

'This is not an issue about affording run-off cover or finding a successor practice, which we know can often be a problem for those looking to close down. It is about ensuring the interests of clients and others are fully protected.'

The SRA's guidance can be found here.

 

John van der Luit-Drummond is deputy editor for Solicitors Journaljohn.vanderluit@solicitorsjournal.co.uk | @JvdLD