Law Firm In Handover of 800 Personal Injury Cases

A renowned personal injury law firm based in Stockport has decided to hand over 800 of its cases; as an attempt to wind-down its business in an orderly way. Facing grave solvency problems and deeply impacted by the change in legal funding procedures, Delta Legal has cut out a deal with PI-Solutions—a legal consultancy firm, for the act.

Delta Legal is based in Cheadle and boasts of an established team of solicitors dedicated to the cause of personal injury work and other associated client services. It has been badly hit by the clauses of the Jackson Reforms and has no other option left than to wash its hands off its case load.

The firm had approached PI-Solutions in January, when Daren Ismay, its managing partner, was troubled by various solvency issues coming his way. Delta Legal, which had ceased to accept new cases in the month of March, has delegated PI-Solutions to aid it’s winding down procedures and take care of approximately 800 pending personal injury cases on its books.

The decision is expected to help Delta Legal achieve almost 100 percent of the total value of the work in progress (WIP)—across the next 3 years. Speaking on behalf of Delta Legal, Daren Ismay had stated that it was indeed disappointing that Jackson Reforms had led to such draconian reductions in their revenues. He had further opined that having understood that it would not be financially viable to take the firm forward, he had decided upon taking immediate actions for the cause. He had sought professional advice at an early stage to manage the process in a more effective manner and gain help in bringing about positive improvements in the situation-- for clients and creditors alike.

A former lawyer, David Johnstone, who had launched PI-Solutions in the year gone by, had stated that Delta Legal had acted at an early stage and had approached them as soon as it started sensing trouble. He added that in the initial stages, they had directed the ailing firm to other experienced professionals, including insolvency practitioners and independent accountants. These experts had advised them on a voluntary arrangement. It was only after Delta Legal had sought expert advice that they came back to sign on the bottom line with PI-Solutions.

The entire process of winding up is expected to take three years. Delta Legal is to witness 40 percent of recovery value in the 1st year itself, while 30 percent and 20 percent of the value should come their way in the next two years respectively. The remaining 10 percent is likely to be taken care of at a discounted rate.

Delta Legal represents clients from all regions of the UK and ranks high among pre-eminent personal injury firm in the North West areas of England. The firm has varied experts on its team and has been successful in handling the claims of thousands of clients in the past.

PI-Solutions, with its head office in Surrey and branches in Glasgow and Manchester, is well equipped in aiding personal injury law firms, which are considering diverse options in the market

David Brason is a close source to Tylers Solicitors and likes to write about the latest news and updates within the personal injury sector.