Law firm forced to close as partners face disciplinary tribunal
AN established Black Country law firm has closed down after more than 40 years in business after claims that its partners were involved in a complex international investment that turned bad.
Sanders & Co, based in Hagley Road, Stourbridge, closed yesterday after 41 years in business.
A statement on the firm’s website said: “After over 41 years in Stourbridge, Sanders & Co. will cease trading on the 30th June 2016, which means we cannot take on any work or continue to act for clients.
“This closure is directly attributable to a dispute with our professional indemnity insurers.”
The dispute is thought to have arisen as a result of the firm getting involved in an overseas housing investment scheme that collapsed owing millions to investors.
Partners at the firm, Michael Davies and managing partner Clare Taman, together with fellow lawyers Charles Fraser-Macnamara and his daughter, Katherine, now face prosecution by the Solicitors Disciplinary Tribunal.
The Solicitors Regulation Authority said the Tribunal was satisfied there was a case to answer against the quartet, citing a conflict of interests.
It said the firm had acted for a client in relation to a “complex overseas investment and concurrently for individuals who invested in the scheme, in a situation where there was a conflict, or a significant risk of a conflict, between the interests of each individual investor and the interests of the firm and an individual”.
In relation to Ms Taman, it added she had involved herself and the firm in an investment scheme that was “outside her of the firm’s area of expertise and experience and where there was no legitimate need for the involvement of a firm of solicitors”.
Also, that she permitted payments into and transfers or withdrawals from the firm’s client account which “were not related to an underlying legal transaction or a service forming part of her normal regulated activities”.
It added that the allegations were as yet unproven.
“(The) Tribunal will reach its own decision after considering all the evidence. The Tribunal has certified that there is a case to answer in respect of (the) allegations,” adds the SRA.
The statement on the firm’s website concludes: “The partners at Sanders & Co are bitterly disappointed at this turn of events but unfortunately do not have the resources to continue any further litigation with its insurers therefore the closure is unavoidable.
“We wish to thank all our clients for their support over the last 41 years.”
Wills lodged with the firm have been transferred to rival Black Country law firm, George Green.
It said any deeds lodged with the firm would be returned to clients as soon as possible.
