Ailing personal injury firm hands over cases

A STOCKPORT personal injury law firm impacted by changes in legal funding and facing solvency problems, is handing over its 800 cases as part of an orderly wind-down of its business.

Cheadle-based Delta Legal, which says it has been hit by the Jackson Reforms, has struck a deal with legal consultancy PI-Solutions for it to run off its case load.

This will allow it to achieve almost 100% of the value of its work in progress (WIP) over the next three years.

Daren Ismay, managing partner at Delta Legal, said: “It’s very disappointing that the Jackson Reforms have resulted in such a draconian reduction in revenues. 

“Having recognised that the firm wasn’t going to be financially viable going forward, I decided to take immediate action.  By seeking professional advice early, I’ve been able to manage the process, which will improve the situation for creditors and clients alike.”

PI-Solutions, which is based in Surrey and has offices in Manchester and Glasgow, specialises in helping personal injury law firms considering their options in the market. It was approached by Delta Legal in January.

David Johnstone, a former lawyer who launched PI-Solutions last year said: “Delta Legal acted early and approached us as soon as it recognised there was trouble ahead.  At first, we directed the firm to other experts, including independent accountants and insolvency practitioners, who advised on a voluntary arrangement.  It was after Delta Legal sought expert advice that it then came back to appoint us.

“The whole process will last for three years with Delta Legal likely to see 40% of recovery value within the first year, 30% in the second year, 20% in the third and the remaining 10% is likely to be sold on a discounted basis.”

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