The ability to recover premiums due on After the Event Insurance in insolvency claims, and the ability to recover the uplifted "success fee" under a Conditional Fee Agreement with a solicitor in insolvency claims, will no longer be available from the end of March 2016. Accordingly, Liquidators, Administrators and Trustees in Bankruptcy should ensure they review all cases, new or old, to ensure there are no potential claims sitting on their files which they will not be able to issue from April.
If a claim is issued now, or before the end of March at the latest, then the ability to recover these legal costs will be protected (and so creditors interests maximised). Accordingly it is vital that all Insolvency practitioners conduct a full review or audit of all of their insolvency files going back 6 years to ensure there are no potential claims that have sat on the side whilst the main asset recovery matters have been dealt with. A failure to do this could be criticised in the future, as legal funding in the future will provide a far smaller return to the insolvent estate.
At Francis Wilks & Jones we realise that such claims may not be immediately apparent to you or your colleagues, and often the prospects of a recovery of company monies (on an insolvency appointment) are overlooked or even ignored whilst the live matters are focused on. This can be a mistake and, to lift this burden from you we are prepared to offer, for a fixed fee of £500 plus VAT per case, a detailed review of your matter limited to 3 hours of a fee earner's time, which is a substantial reduction from our usual market rates.
For this fee we can provide advice on whether a claim exists, the legal aspects related to the proposed claim and our proposals to take the matter forward in order not to lose the ability to recover the additional legal funding (which may otherwise be payable out of the proceeds).
If you want to take up this offer please do not hesitate to contact me or any of the partners at FWJ.
Insolvency Practitioners have a very small period of time before this opportunity goes and it does take some time to draft the necessary documentation, apply for insurance and put together the claim, so it is vital you deal with this urgently. There are arrangements in place to deal with this anticipated demand quickly and if you would like to simply have a chat with me about this, or would liken to take up this offer, then please do not hesitate to call me at my office on 0207 841 0390.