Appeal deadline looms for partners in Ross Harper over judicial factor appointment

THE partners in collapsed law firm Ross Harper have their final opportunity this week to appeal against the decision to appoint a judicial factor to run its affairs.

The deadline for appeal passes on Thursday, and it seems inevitable a Court of Session hearing soon afterwards will confirm Ian Mitchell of accountants Henderson Loggie as a permanent judicial factor. Mr Mitchell announced a week ago that the 50-year-old firm was to cease trading amid an investigation into its finances and the use of clients’ funds.

His appointment by the Law Society of Scotland followed concerns that clients’ money could not be accounted for in the company’s books.

A spokesman for Henderson Loggie said Mr Mitchell could make no further comment about what he has uncovered.

Four Ross Harper partners – Alan Miller, Jim Price, Joseph Mullen and Paul McHolland – had their practising certificates suspended while the investigation is carried out. Other solicitors in the firm can continue practising and it is understood a number have found work.

Henderson Loggie said 23 staff were paid off last week and a skeleton staff remained at Ross Harper’s office in West Regent Street, Glasgow, to assist the judicial factor.

The firm’s spokeswoman added: “We cannot go into much detail as the partners have until 10 May to ask questions or appeal against the appointment of the judicial factor. The factor is having initial discussions with other firms about taking on board some of Ross Harper’s cases. He is looking for the best outcome for Ross Harper and the clients. If clients have funds with Ross Harper, they are in a protected position.”

It is understood a small number of Ross Harper clients have applied to the Law Society of Scotland’s guarantee fund, which exists to protect clients in cases such as this. Funded by the profession, the fund would expect significant claims if Mr Mitchell is this week appointed as permanent judicial factor.

Mr Mitchell said last week he had taken “all reasonable steps to continue trading”, but added: “There were a number of factors that have exacerbated the difficult conditions that led to us deciding that, even though I had the power to continue trading, in the circumstances it was more appropriate to cease trading in the immediate time.”

The appointment of a judicial factor is rare, although one was appointed earlier this year to examine Highland Law Practice in Wick, which led to all its client files being transferred to Georgesons Solicitors.

A legal source said: “That was a relatively small case – Ross Harper is the biggest judicial factor case for about 20 years.”

At its height, Ross Harper had 12 offices in Scotland and was a specialist in personal injury claims, criminal and family law. It lost a number of senior partners in 2010, including Cameron Fyfe and Professor Alan Susskind.

Clients affected by the decision to cease trading can contact Henderson Loggie on 01382 200055. For Law Society information on judicial factors, see: Judicial Factor (PDF)