The liquidator of claims handler and legal expenses insurer Invaro is set to begin a bid to recover more than £50 million it alleges is owed by solicitors' firms.

Accountancy firm Smith & Williamson said it is about to issue proceedings against four law firms that it claims owe money to Invaro.


All four firms will be sued for at least £1 million, with one firm to be sued for £15 million. It will then consider action against a host of other firms.


Tony Murphy, head of corporate recovery at Smith & Williamson, said the debts have arisen from solicitors' failure to make repayments to Invaro when cases it had referred and funded reached a successful conclusion.


Mr Murphy declined to name the firms involved until a writ has been issued against them, likely to be later this week.


He said: 'We do not sue solicitors lightly. But we are well-funded and our advice is very strong. We are disappointed that we have not managed to negotiate a settlement.'


Peter Levaggi, the partner at City firm Charles Russell's Guildford office, who is acting for the liquidator, said: 'There are lots of other law firms that owe money, and some of them are probably waiting to see if there is an appetite to proceed with litigation. My instructions are that there is an appetite.'


Invaro went into liquidation last June, making 70 staff redundant. Shortly before, the company said it was handling 80,000 claims.