Law firm administration: Over £4.8M recovered in Seth Lovis project

In the complex arena of law firm administration, the efficient management of a law firm’s dissolution is vital. Recovery First assisted in the administration of Seth Lovis & Co Solicitors. This project was undertaken alongside Evelyn Partners, two funders and the Bank. Using the Recovery First method, Evelyn Partners recovered more than £4.8 million into the estate and there is still more to come.

Project overview

The administration of Seth Lovis & Co Solicitors presented a unique challenge, characterised by its involvement with two funders alongside the Bank and a wide array of legal matters. The areas of law Seth Lovis & Co offered prior to their administration included:

• Military claims
• Personal injury
• Clinical negligence
• Family law
• Cavity wall insulation claims
• Timeshare disputes
• Professional negligence
• Property litigation
• Debt collection
• Contested probate
• Wills & probate
• Consumer debt litigation

Given the diversity and complexity of the cases involved, Recovery First was tasked with ensuring the seamless transition of legal files while preserving the value of the work in progress.

Strategy and implementation

Recovery First’s approach was methodical and multifaceted. They focused on the immediate placement of critical personnel and the strategic management of case files. Key accomplishments include:

• Partner and team placement: Recovery First successfully placed two of the partners and several of their teams with two of their panel firms. This strategic move ensured that the expertise and knowledge of the original team were retained and provided future employment for loyal staff
• Case file management: Recovery First also acted swiftly in their transfer of active case files to  approved law firms within their panel. This action was crucial in maintaining the integrity of each client’s case while also preserving the insolvent firm’s work in progress.

Results

Recovery First achieved a great outcome on this project. Key achievements included:

• Financial recovery: The project is on track to achieve a recovery of approximately £5 million upon conclusion,  surpassing initial expectations.
• Case assignment: In a final push to conclude the administration effectively after five years, Recovery First will acquire  the few remaining cases. This step is aimed at ensuring a thorough and efficient conclusion to the administration process.

Testimonial

The success of Recovery First’s involvement has been summed up by a testimonial, highlighting their critical role:

“Recovery First’s expertise has proven invaluable on the matter of Seth Lovis & Co Solicitors – In Administration, allowing us to recover in excess of £4.5 million into the estate due to their swift action in placing active case files with an approved law firm within their respected panel, so as to protect the integrity of the client’s case, whilst maximising the value of work in progress of the insolvent party.” – Finbarr O’Connell, Evelyn Partners

Using the Recovery First model for law firm administration

Recovery First’s adept handling of the Seth Lovis & Co Solicitors’ administration highlights their expertise and experience in managing complex legal and financial recoveries.

Recovery First offers a specialised service that assists law firms in England and Wales, particularly those looking to restructure, retire, or exit specific sectors of the legal market.

We offer a positive solution for those who are exiting the legal market due to insolvency.

The Recovery First process involves discreetly selling a firm’s cases to multiple purchasers on their panel of solicitors, covering all areas of law.

The Recovery First model mitigates the risks to the buying firms and results in a higher value for the work in progress being recovered and provides the exiting firm with a share of any success fee, whilst ensuring SRA compliance.

The Recovery First team manage the whole process from planning the project and transferring files to appropriately qualified panel firms suited to deal with your unique client matters through, to collection and management of costs at conclusion. Fees are only payable as a proportion of what you recover, so there is no risk to the exiting firm.

Exiting firms receive 100% of their recoverable WIP, plus their allocated entitlement to deductions from damages and paid disbursements, anecdotally returning significantly higher value than a traditional WIP sale.

Get in touch

If you would like to find out more about Recovery First’s process, feel free to get in touch with our team today using the details below and we will contact you to discuss the process.