SSB Law: Clients advised of 'best chance' to pay huge debts after Sheffield firm goes bust

Householders left owing thousands when Sheffield company SSB Law collapsed have been urged to launch 'no win no fee' claims for professional negligence.

Paul Daniel, of London-based Specters Solicitors, said it offered hundreds their best hope of clearing huge debts.

Specters is one of several law firms keen to launch claims against SSB's insurers.

He said: "SSB took a gamble by dealing with cavity wall claims which ultimately weren’t that good and they’ve gone bust and run away from it. For the clients receiving cost orders it must be horrendous."

SSB Law collapsed into administration last month with the loss of 192 jobs and debts of £205m. Scores of clients have been ordered to pay up to £30,000 in legal costs after claims for defective cavity wall insulation collapsed - despite being assured they were 'no win no fee'. 

Mr Daniel acknowledged some people might be wary of launching a second, similar action.

He added: "We wouldn’t use no win no fee agreements if we didn’t think there would be a valid claim. Ultimately people would have to put their trust in us."

SSB Law clients were told they had After The Event insurance to protect against losing. But Mr Daniel said it appeared ATE insurers weren’t updated on the progress of all cases and that made many policies invalid.

He added: "Some big law firms are run like a factory with thousands of cases and a lot of paralegals. It can be very difficult to supervise everything. It depends on the management, mistakes can happen."

Professional negligence cases could take up to three years, he warned. But a live claim could hold off the firms demanding money.

He said: "I can’t see how a court would allow an insurer to take a property if someone had literally done nothing wrong."

SSB client Amjad Ahmed says he was repeatedly told he would not have to pay whatever the outcome of his cavity wall insulation claim.

But an expert report found no damp at his Bradford home and the case was dropped - leaving him with an £11,880 bill.

M Ahmed believed SSB Law had organised 'after the event' insurance to protect against losing. But in April 2023, senior litigator Clare Jenkins wrote to say it did not apply 'where there are no prospects'.

In some cases SSB dropped a claim when a cavity wall insulation firm fought back. And when ATE insurance proved invalid, they demanded clients pay legal costs

SSB Law was based at Navigation House, South Quay Drive, Victoria Quays.

The Solicitors Regulation Authority is looking into the firm and has warned directors  could be hit with 'unlimited' fines if investigators prove misconduct over 'no win no fee' cases.

Administrators FRP Advisory says it sold 42,708 cases to other law firms. Manchester firm JMR Solicitors has taken on the cavity wall case files.