The collapse of SSB Law sent shockwaves through the legal community, affecting thousands of clients and employees alike.
- Sheffield-based SSB Law entered administration in early 2024 due to financial misalignment with nearly 43,000 cases on its books.
- A staggering £200 million debt to six litigation funders brought the firm to its knees, forcing almost 200 staff out of work.
- Many former clients, mainly from West Yorkshire and Lancashire, now face unexpected legal bills averaging over £35,000.
- Calls for government intervention have heightened, as investigations by the Solicitors Regulation Authority (SRA) continue.
In early 2024, the Sheffield-based law firm SSB Law entered administration, a move that reverberated across the legal sector. The firm, which specialised in compensation claims on a ‘no win, no fee’ basis, found itself in a precarious financial position, ultimately collapsing under the weight of £200 million in debts. This collapse has led to major disruptions, particularly in West Yorkshire and Lancashire, where many of SSB Law’s clients reside.
The firm’s operational costs failed to align with its caseload, which included nearly 43,000 active cases. This financial mismanagement, compounded by failed cavity wall insulation (CWI) claims, resulted in significant financial strain. As the firm ceased operations, around 200 employees found themselves suddenly without work, prompting advisory firm FRP to assist these former workers in seeking aid from the Redundancy Payments Service.
Ex-clients of SSB Law now face unexpected and substantial legal bills. The law firm Hugh James has stepped in to represent these individuals, who are grappling with costs that average over £35,000, despite assurances of protection from adverse costs. This has left many former clients, some of whom are taxi drivers and other low-income workers, in financial turmoil. For instance, Jamil Zafar, a taxi driver from Halifax, received a bill for more than £18,900, leaving him financially and emotionally strained.
The psychological and financial toll on former clients is severe, with some individuals, like Qurrah Ahmed’s father, facing bills exceeding £13,000. Ahmed has been proactive in forming support groups for those affected, highlighting the dire circumstances many are facing. The anxiety and stress have reached a level where people are reportedly unable to sleep, severely impacting their mental health. These revelations have caught the attention of political figures, including Burnley MP Antony Higginbotham, who has raised concerns in Parliament.
In response to the growing crisis, the Solicitors Regulation Authority (SRA) has commenced an investigation. This move comes amid urgent pleas from those affected for swift intervention to alleviate their financial burdens. The SRA has acknowledged the widespread concerns and is actively investigating the issues.
Hugh James continues to assist former clients in managing their unexpected liabilities. Legal representative Erich Kurtz noted that clients were initially told they had insurance to cover adverse costs but are now left with significant bills. The firm is pursuing professional negligence claims against SSB Law’s insurers, seeking relief for the affected clients. Additionally, this situation has sparked a broader debate about the adequacy of regulatory frameworks governing consumer claims firms, with stakeholders calling for reforms to prevent future crises.
The collapse of SSB Law has highlighted critical gaps in consumer protection within the legal sector, necessitating urgent reforms.
