A South Yorkshire law firm, which made headlines after taking a cut of miners’ compensation claims, has collapsed, with the loss of 36 jobs.
Raleys, which was based on Regent Street, Barnsley, has gone into administration.
A statement on the firm’s website said Nick Reed and Julian Pitts, of Begbies Traynor, have been appointed administrators.
A spokesman for Begbies Traynor said: “To ensure that their clients’ matters and interests are protected with the minimum of disruption and to maximise returns to creditors, the partners of Raleys have made arrangements for all ongoing clients’ files to be transferred to Ison Harrison solicitors in Leeds.”
Raleys represented many South Yorkshire miners in their claims for compensation over work-related injuries, but the firm was criticised for claiming back legal fees from miners whose fees had been paid by the Government.
Bassetlaw MP John Mann was one of several high profile figures to lead a campaign against Raleys and other solicitors over the fees.
In 2009, three partners at Raleys were suspended after the Solicitors Disciplinary Tribunal ruled they and three others took a ‘deliberate and calculated risk’ to breach their code of practice and showed conduct ‘unbefitting’ their profession.
In April last year the Court of Appeal opened the door for potentially thousands of former miners who suffered industrial injuries to claim against Raleys.
The firm failed to overturn a 2013 decision which found it acted negligently over the claim of miner Andrew Proctor. Mr Proctor’s compensation settlement of £11,141 failed to take into account a claim for services, such as gardening and car repairs, required as a consequence of his disability.