‘Clients to lose millions in fights over wills’ as Law Society orders estates business of broke law firm Ross Harper sold to highest bidder

CLIENTS, bereaved families & beneficiaries of wills & estates handled by the now closed Glasgow law firm of Ross Harper stand to lose huge amounts of money and face many years of battles to secure any remaining funds for payout after it was revealed earlier this week the Law Society of Scotland ordered the sale of Ross Harper’s estates & wills business ‘to the highest bidder’ in order to help pay the fees of the Judicial Factor appointed by the Law Society and monies owed by the law firm.

The ‘highest bidder’ in a secretive bidding process not published by the Law Society turned out to be another Glasgow based law firm, Mitchells Roberton, who claim on their website to be “a highly respected and trusted Scottish law firm and one of the oldest in the country”, matching almost a similar claim put forward by the now defunct firm of Ross Harper, who are now caught up in allegations large quantities of cash were plundered from client accounts.

While the Ross Harper website still urges consumers “to trust” the now shut down law firm with their wills & executries, no formal statement has been issued by the Law Society of Scotland on its website about the sale of the wills & estate business to another law firm.

As of this morning the Ross Harper website said : Trust Ross Harper to help handle your bereavement...

Our Wills & Executries Team can assist you with
Preparation of Wills
Administration of Estates
Executry disputes
Legal rights claims
Powers of Attorney
Establishing and administering Trusts

A legal insider speaking to Scottish Law Reporters this morning revealed that no clients, bereaved families or beneficiaries who were already dealing with Ross Harper over wills & related business were consulted by the Law Society who rushed through the sale to Mitchells Roberton.

He alleged the sale of the wills & estates business “was steamrolled through on Law Society orders in an effort to prevent further embarrassing headlines rather than protect what was left of any residual estates or cash from wills left in the Ross Harper client accounts”

The Herald newspaper has also reported on the sale of the wills & executry business of Ross Harper, noting that one client at least, managed to save himself from the bitter pill of having to fight the Law Society of Scotland for a decade to return any missing funds via the Society’s “Guarantee Fund” which itself is under scrutiny for decades long delays in payouts and the highest failure rate of claims of any insurance policy.

Scottish Law Reporter recently reported on experts claims that victims of fraud at Ross Harper face up to ten years of wait to recover any funds they have lost. Read more on that HERE. The original SLR report on Ross Harper which stirred up quite a bit of debate and input can be read HERE

The Herald reports :

Families face Ross Harper wills battle after sell-off

Alison Campsie
Senior News Reporter

FORMER employees of stricken law firm Ross Harper have criticised a decision to sell off the company's wills and estates business to the highest bidder in order to help pay its bills.

Some have claimed the move will add further stress to grieving families trying to secure funds from a relative's estate.

The wills and estates business will now be handled by Mitchells Roberton, with clients due to be informed of the development in writing over the coming days.

Some families will, however, have to fight to retrieve contents of an estate secured by Ross Harper before April 5 – the day when financial investigators were called in and the company bank accounts frozen.

They will have to apply to the Solicitors' Guarantee Fund to access the money owed to them, but some could still be left out of pocket, given that the fund does not always cover the full losses incurred.

One former Ross Harper employee said: "If it wasn't bad enough dealing with a family member dying, they have the added stress of not dealing with someone they had built up a relationship with, and trying to recover money – and they may not get all the money back.

"The judicial factor should have just passed the files to the solicitor who has moved on to another firm so he could continue to deal with his clients."

Ross Harper, which was in business for 50 years, was once considered one of Scotland's most successful high street law firms.

It ceased trading on April 30 after a financial investigator, appointed following Law Society of Scotland concerns over the use of client accounts, found there was not enough money available to pay wages and keep the business going.

Thousands of former clients of the firm are owed money, and it has also left a string of creditors. It is known that Ross Harper owed £50,000 in rent for one of its premises, with the firm owing substantially more on the lease for its main office in West Regent Street, Glasgow.

Interim judicial factor Ian Mitchell, of Henderson Loggie, could not confirm yesterday how many former clients of Ross Harper would be affected by the sale of the wills and estates business.

He defended the move to sell the accounts, given his job was to "achieve the best outcome" for Ross Harper, its former clients and creditors.

He said: "I considered offers from all interested parties and engaged in extensive negotiations in order to achieve the best outcome for the firm. Mitchells Roberton presented the best offer and successfully acquired the work."

Work is continuing to find a suitable buyer for the conveyancing and civil arm of the firm.

Experts used by the firm in court cases, such as forensic scientists, are known to be among those who have been left without payment.

A total of 23 staff have been made redundant at Ross Harper, while others jumped ship as the company started to unravel. Its four partners remain suspended from practice as the interim judicial factor's investigation continues. Mr Mitchell's appointment is due to be made permanent this week.

One former client of Ross Harper has spoken of his relief that he did not pay the contents of his mother's estate into its company account.

The man, who asked not to be named, turned to the solicitors for help in finalising his mother's personal affairs after her death.

He said: "I went with Ross Harper because they had been around for a long time and they were virtually a high street brand.

"They went to court to sort out some title deeds and they wanted me to transfer the money from the estate to them so they could administer it. That is something I declined. I am so happy now I didn't give them the estate."

Guarantee Fund payments to clients caught in ‘£300K client account looting’ at defunct law firm Ross Harper ‘may take years, or never’ say experts

Glasgow based Ross Harper shut down on Law Society orders as huge losses probed. CLIENTS of the now defunct law firm Ross Harper, shut down yesterday on instructions from the Law Society of Scotland after society insiders privately briefed selected media outlets claiming “.. it had become clear massive amounts of money have been plundered from the firm’s client accounts” now face an uncertain wait which may end up spanning FIVE OR MORE YEARS to find out if they are going to be compensated by the Law Society for spectacular disappearances of client cash at Ross Harper, now claimed by legal insiders to exceed THREE HUNDRED THOUSAND POUNDS, reported earlier by Scottish Law Reporter HERE.

While Law Society officials have been at pains to point out all day the Society operates a “Guarantee Fund” which is ‘supposed’ to compensate clients for losses incurred as a result of dishonesty, several solicitors and legal observers have pointed out the average time span of a claim to the Guarantee Fund is around FIVE YEARS at present with around 60% of claims failing, while the average payout can be a remarkable “less than TEN PERCENT of the original loss”

Earlier today, a legal insider backed up claims the Guarantee Fund was operating on a lengthy claim basis by revealing to Scottish Law Reporter the details of a claim to the Guarantee Fund made by a client in 2005 for a sum of £125K embezzled from his solicitor’s client account. Papers shown to journalists documented a vast file of correspondence with the client containing many delays on the part of the Law Society to advance matters and claims from the client his legal representation “had been interfered with by Law Society officials”. Papers within the file indicate three law firms ceased to represent the client and he ended up unable to secure any further legal representation to assist his claim to the Guarantee Fund.

A perusal of the large file of papers reveals the 2005 claim has only recently been settled with the victim receiving much less than 10% resulting in a payout of £9,000 compared to the amount actually embezzled by the solicitor which came to around £125K.

Speaking to Scottish Law Reporter earlier today, a senior solicitor alleged clients of Ross Harper who have lost money “…may end up whistling in the wind for ever and a day while they wait on the Guarantee Fund making a payout.”

A legal expert who specialises in dealings with Guarantee Fund payments has told Scottish Law Reporter : “Any clients who have suffered losses in connection with the Ross Harper collapse should prepare themselves for years of letter writing and a final Guarantee Fund pay-off falling far short of their original loss.”

A former employee of an Edinburgh law firm where client accounts were looted to the time of HALF A MILLION POUNDS, much of which remains to be repaid to victims after bitter years of wrangling with the Law Society, has today described the Guarantee Fund as “corrupt” and “aggressively anti-client”. The employee, who lost her job after blowing the whistle on wholesale theft of funds from client accounts said she doubted anyone would receive what they were owed in the Ross Harper debacle.

£300K client fund loss ? Law firm Ross Harper ceases trading as Law Society declares ‘warning shot’ to GBA membership, dissent ‘a success’

THE Law Society of Scotland have today confirmed the complete closure of Glasgow law firm Ross Harper after reports were featured in the media of politics at play and sizeable financial inconsistencies in client accounts at the Glasgow based law firm, who were raided by the Law Society earlier this month over “accounting irregularities” which saw a Law Society controlled Judicial Factor appointed to take charge of the now defunct firm. Coincidentally, just prior to the Law Society's raid, Ross Harper had decided to join the Glasgow Bar Association, who are known to heavily oppose the dictates & policies of what many non Edinburgh solicitors brand the “East coast mafia” of the Law Society’s Edinburgh based Drumsheugh Gardens HQ.

A short announcement from the Law Society of Scotland today reports :

Ross Harper Update - Firm to cease trading

The Judicial Factor appointed to Ross Harper has today announced that the legal firm will cease trading today (Monday 30 April). Any affected clients with questions can contact the Judicial Factor, Henderson Loggie directly on 01382 200 055.

Any solicitors impacted by today's announcement and wishing support or advice can contact the Law Society of Scotland professional practice and support team on 0131 226 7411.

Lorna Jack, chief executive of the Law Society of Scotland, said: "Ross Harper has been operating for some 50 years and is one of Scotland’s best known legal firms. The decision by the judicial factor to cease the firm’s trading therefore marks the end of an era within the Scottish legal profession.

"It is however an important part of our role to protect client interests and seek the appointment of a judicial factor whenever we have concerns that client money is missing or, because the accounting records are so poor, we cannot tell if client funds are missing. This was why was applied to the Court of Session for the appointment of a factor in the case of Ross Harper."

The Scottish Legal Aid Board’s statistics for 2010-2011 reveal that Ross Harper Solicitors had been paid the sixth highest amount of taxpayer funded legal aid criminal fees at a whopping £1.3m. Two years before, Ross Harper were paid around £1.5m and £1.7m in legal aid fees.

Media reports suggest all employees of Ross Harper have lost their jobs, and all partners practising certificates remain suspended. A discussion of the scandal and accusations relating to goings on at the firm featured in the comments section of Scottish Law Reporter’s previous report of the Ross Harper closure, which can be viewed HERE

A legal source tonight accused the Law Society of “playing a game of dirty tricks against law firms who disobey the society’s demands”. The source identified another law firm based in Glasgow who are also now under investigation for alleged “accounting irregularities”, again by coincidence, a law firm which also appears to have disagreements with policy from the Law Society’s Edinburgh Drumsheugh Gardens HQ.

Earlier this month a Law Society insider told journalists for Scottish Law Reporter there were rumours of a THREE HUNDRED THOUSAND POUND deficit in the Ross Harper client accounts, however no one from the Law Society would officially confirm or deny the figures.

Politics at play or money worries ? Ross Harper solicitors shut down by Law Society over ‘accounting concerns’ in ‘highly public’ swoop on law firm

THE Law Society of Scotland has, dramatically, shut down the Glasgow based law firm ROSS HARPER, suspending all of the firm’s solicitors practising certificates and appointing a Judicial Factor after an audit & investigation, apparently initiated as a result of “complaints”, revealed “substantial inconsistencies” in the firm’s client accounts. The move, which came after an application made in the Court of Session yesterday, has been highly publicised today after Law Society media team & senior officials put out a wide variety of leaks, statements & comments to the wider media to ensure the move was well publicised, purely on the basis of “concerns over the safety of client funds.”

The Glasgow based law firm at the centre of the story, founded in 1961 by Professor Ross Harper who was a past president of the Law Society of Scotland itself, has been regular finalists in the annual law awards for “Law firm of the year” & “Criminal law firm of the year” and celebrated its 50th Anniversary in 2011. However, the firm has endured a difficult period with the loss of many of its high earning partners such as Cameron Fyfe, Professor Alan Susskind, Harvey Diamond and Richard Freeman after disputes over how the firm was being run.

The Law Society of Scotland released a statement today : The Law Society of Scotland, as part of its regulatory function, has asked the Court of Session to appoint a Judicial Factor to legal firm Ross Harper. The interim factor, Ian Mitchell from Henderson Loggie Chartered Accountants, was appointed by the court today, Thursday, 5 April 2012.

The application was made to the court to protect the clients' interests after the Law Society inspected the firm's books and became concerned about the accounting records. The appointment means that the practising certificates of the firm's partners have been suspended.

The firm has five offices based in Glasgow, Hamilton and East Kilbride. Any clients of the firm who have concerns can contact the Henderson Loggie office in Dundee on 01382 207060. Henderson Loggie will be contacting all of the firm's staff to inform them. Solicitors and trainees at the firm can also contact the Society's professional practice helpline during office hours: 0131 226 7411.

However, a Glasgow solicitor speaking to Scottish Law Reporter this morning alleged there is more to the Law Society’s “heavy handed approach” to Ross Harper, citing recent events which led to the firm joining the Glasgow Bar Association, which was reported in the Herald newspaper HERE

The solicitor, who does not wish to be named said : “I think you will find there are a great deal of politics wrapped up in the Law Society’s handling of Ross Harper rather than simply the reasons stated in the Law Society’s press statement.”

He went on : “It may well be there are anomalies in Ross Harper’s accounts however I understand from well placed sources this highly public move is more about the Law Society teaching the Glasgow end of Scotland’s legal profession a lesson after recent arguments between the Glasgow Bar Association and the Edinburgh based Law Society, who many solicitors now thing has definitely had its day.”

A former Law Society Council Member appeared to corroborate the claims from the unnamed solicitor, telling journalists from Scottish Law Reporter the Law Society are “growing concerned for their position” in the wake of dissent from within the legal profession particularly from Glasgow solicitors who now feel the Law Society can no longer represent the legal profession interests or those of the public.

The Law Society were keen to point out in their Press Release their duties regarding their alleged protection of client funds, stating : “The Law Society of Scotland's compliance team carries out regular inspections of all solicitor firms in Scotland to ensure that they comply with rules on dealing with clients' money. If an inspector suspects that client money is missing or the accounting records are so poor they cannot tell if client money is missing, the Law Society of Scotland can request the Court of Session to appoint a Judicial Factor to that firm to protect the public and other solicitors. The decision to make the appointment is for the Court.”

On occasions, it is found that a firm's accounting records have not been kept properly. Rarely, it may be suspected that client money is missing. To protect clients, the Society asks the Court of Session to appoint the Judicial Factor to examine the firm's records. The Judicial Factor will reassure clients that business is ongoing and, where necessary, try to put them in touch with other solicitors. You can find out more from the Law Society’s information sheet on judicial factors (pdf)

In reality however, the Law Society of Scotland and now the Scottish Legal Complaints Commission have failed on almost every occasion to guarantee the protection of client funds from law firms who continue to see their clients as “easy targets” for theft, either by way of deliberate overcharging for fees or via embezzlement & other types of frauds, both now sharply on the rise.

The Herald newspaper reports on the difficulties at law firm Ross Harper : Law firm in crisis over client funds

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