Frequently Asked Questions

Who are Recovery First and what type of law firms do you work with?

Recovery First is a facilitator  and project management team, coordinating a network of panel firms to seamlessly take on work from our client firms. The panel law firms are established practices with the expertise and capacity to take on new work without the need for change management. Our client firms are those seeking to exit a specific practice area they have previously serviced, to fully retire from the legal market or if unfortunately facing an insolvency process.

Can Recovery First work with other professionals supporting a law firm?

The large proportion  of our work comes through expert referrals, from restructuring organisations, accounting firms, and mergers and acquisitions specialists. We are often engaged when these professionals have a law firm client and want an informed perspective on the best way to achieve their client’s desired outcome.

Our involvement spans a wide range of situations. This may include assisting a retiring lawyer in maximising the value of their work in progress, supporting a firm navigating a complex merger or acquisition where specific issues require focused attention or when a firm is entering into a form of insolvency. There are numerous situations where our expertise complements that of other legal professionals, enabling seamless collaboration and optimal results.

Is Recovery First limited to working with personal injury firms?

No, Recovery First is not limited to working with personal injury firms. It works with a broad range of law firms across different practice areas. Our focus is on assisting firms that are looking to exit a particular area of practice or retire, and on coordinating panel firms that have the capacity to take on new work. This means we can support firms in all areas – not just personal injury.

How does Recovery First maximise value from work in progress?

The key to preserving the value of work in progress lies in our approach of distributing work across multiple firms, each selected for their expertise in that specific area. Importantly, all parties interests– including Recovery First’s – are economically aligned to the  ultimate conclusion of client matters.

Unless special arrangements are made, no cash changes hands at the outset. From the start, the focus is on identifying and realising the actual value of the work in progress and fixed fees. This value is then fairly apportioned among the parties. By taking this approach, panel firms are not required to heavily discount the anticipated WIP value based on estimates. Instead, apportionment is based on the confirmed value at the conclusion of the matter, ensuring that each firm’s share accurately reflects the true worth of the work undertaken.

Does Recovery First work with both solvent and insolvent firms?

Yes, Recovery First works with both solvent and insolvent firms. While there is a misconception that we only collaborate with the restructuring profession, this stems from our early work, which focused on restructuring projects where our approach significantly improved recoverable value.

Today, our work is evenly spread. We support solvent firms looking to retire or restructure specific departments, as well as cases involving some level of financial distress, often working alongside insolvency practitioners.

How does Recovery First handle clients of firms that are closing down?

When a law firm is closing, Recovery First does not contact the firm’s clients directly. With the benefit of templates provided by Recovery First, the client firm  informs their clients about the closure, outlining their options and next steps. They introduce the client to the relevant panel law firm who then contact the client to introduce themselves directly, reassure the client  and explain the ongoing process.

Whenever possible, informed consent from the client is obtained to the transfer. But in situations there is an urgent need to protect the clients’ position and time is of the essence, the file may be transferred with implied consent , with the panel firm acting as custodian. Recovery First does not hold client files; the panel firm takes responsibility and seeks instructions directly from the client.. Clients are always free to choose whichever law firm they prefer, though the recommendation is made based on the panel firm’s specialist expertise to best meet the client’s needs.

What are the main strengths of Recovery First’s approach?

The main strengths of Recovery First’s approach lie in both value preservation and client-focused service. Firstly, the full value of the recovered work in progress is always attributed to the firm that generated it, ensuring that no value is lost in the transition. Secondly, clients benefit from being matched with a panel firm specifically selected for their relevant specialisations, ensuring their needs are met with precision.

By distributing work across multiple panel firms with existing capacity, we remove the need for extensive change management and allow files to be handled immediately and efficiently. This creates a seamless experience for clients, even during periods of significant transition or change.

What is the process for running off files using the Recovery First model?

The Recovery First model for running off files involves allocating a firm’s files to our panel firms, who then manage each matter through to conclusion. The panel firm engages with the client, obtains instructions, and works the file to completion. Once the outcome is achieved, the actual value of the work is determined.

An independent allocation process then takes place, distributing the realised value between the exiting firm, the client firm, and the panel firm. Recovery First, being economically aligned with our client firms, handles all accounting at the conclusion of each case. Separate client accounting ensures that each firm’s entitlements are protected, with recoveries transferred on agreed dates. This provides certainty and allows exiting firms to move on confidently, knowing their work in progress is properly managed and valued.