Manchester firm shut owing £738,000 to unsecured creditors

Topics: Personal injury & clinical negligence

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  • SRA London

A personal injury firm has been shut down owing more than £560,000 to medical expert companies.

The Solicitors Regulation Authority intervened yesterday to close Manchester-based Mendell Solicitors Limited to protect the interests of clients or former clients. The intervention also applies to the firm’s sole shareholder, Barrie Mendell.

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The decision follows the company entering voluntary liquidation earlier this month, with its registered address becoming that of Lancashire insolvency firm Leonard Curtis.

A statement of the company’s affairs, published on 2 February, revealed the firm’s total outstanding debt was £738,000.

The two major creditors are medical diagnosis agencies Speed Medical Examination Services Limited and Tri Star Medicals Limited, owed £421,431 and £141,057 respectively.

Financial services firm the Wesleyan Assurance Society is owed £53,586, expert witness firm Laird Assessors is owed £34,516 and claims investigation company Ravenstone UK is owed £47,653. Four-figure sums are also owed to HM Revenue & Customs and Manchester City Council.

The statement says that total assets come to just £30,625, which will be made available for unsecured creditors.

According to a notice published on 8 February, a liquidation committee has been formed, with Speed Medical and Tri Star Medicals both sitting as members.

Readers' comments (26)

  • Another nail in the coffin of this erstwhile 'profession' (sic).

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  • "....The two major creditors were medical diagnosis agencies Speed Medical Examination Services Limited and Tri Star Medicals Limited, owed £421,431 and £141,057 respectively. .."

    How do (did?) the Courts ever take these Companies seriously with a straight face?

    When I did PI (as a Trainee as it should consider to be done by (allowing an entry in)), we took it very carefully to ensure that the right expert (absolute specialist), was instructed and cleared by the Defendant Insurer first (usually they then knew such report wouldn't be bogus) ...

    How far down the road of corruption many solicitors and the whole PI 'Industry' (the latter as some loosely defined 'lawyers' like to refer it), went.

    Though I do hope the employees of Slater and Gordon who were sucked in are ok.

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  • How long ago were you a trainee? Much of the way the examining expert is chosen has been dictated to Claimant Lawyers, very little free choice nowadays

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  • My question to the SRA would be:-

    Why have you "intervened" into a firm that no longer trades and is in liquidation?

    If the idea is to protect clients from disaster come the impending insolvency, it's a bit late to bother, given that is was one month ago that the formal decision was made to put the company into liquidation (26th January 2016).

    Or does "closing down" an already closed down company seem like a good use of resources?

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  • Raynor, keep blogging away, at least you show some interest in this 'profession' unlike tens of thousands of others. Some don't seem to like to hear how things were in Eastbourne 1973-76, but what the heck! Some don't find any pleasure in 'Dad's Army'. The sad thing is that they will never know what a joy, well relatively speaking anyway, it once was to practise in a profession.

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  • Yes, interesting Dominic. I thought that (ha ha .. no I didn't only joking ....) ...

    It is a good point though .....

    So just help me here, if its in liquidation, and no longer trading it has gone into the assigned risks pool and therefore was insured until actual cessation. So, clients are protected.

    Why did the Claims Handlers Regulatory Authority "go in"?

    If its only creditors..... pas de probleme?

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  • I agree, David. And I like your blogs as well.

    You are likely to always be taken seriously anyway. I can tell from the nature and content of your writing.

    Regards.

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  • @Dominic Cooper26 February 2016 09:34 am:

    "My question to the SRA would be:-

    ... does "closing down" an already closed down company seem like a good use of resources? .."

    Well you may ask Dominic, well you may ask. You do have a very wry ironic bent to your blogs though. I like them.....

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  • I have no idea what the specific circumstances of this firm are, but previously in this situation the 'closed down' company still has significant client balances to work through and resolve. If that is the case the SRA may have decided that the remaining management, if there is any, is incapable of dealing with that, or that client monies are otherwise at risk.

    Sometimes there is also the need to get hold of client papers and records if there is no provision for these to be stored securely.

    Given the significant costs of intervention there will be some issue of that nature.

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  • Anon 10.02
    Quite so. The SRA has powers to protect client money and papers which the liquidator does not. In fact, there will probably be circumstances where their respective duties very much conflict.

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