Seth Lovis collapsed when its large roster of CFA-funded cases failed to settle as forecast.
Seth Lovis & Co Solicitors had specialised in conditional fee agreement cases based on damages claims, before the firm ceased trading in March. The closure resulted in all 45 fee-earning staff being made redundant.
According to a notice of administrator’s proposals filed with Companies House this week, the firm’s working capital requirements increased during 2017/18, largely due to so many cavity wall claims not settling. While some claims, where clients sought compensation for faulty insulation, were resolved, in the majority of cases the defendants did not admit liability and the firm was unable to recover any fees quickly enough.
See the full article – Claims firm folded when CFA delays choked off cash flow
By John Hyde 23 May 2019, The Law Society Gazette.