Thu, 17 Mar 2016 | ADMINISTRATION
A Yorkshire-based law firm that was heavily criticised for misconduct during the miners’ compensation scandal has gone into administration.
Raleys was mired in controversy in 2009 when several partners were either fined or suspended by the Solicitors Disciplinary Tribunal (SDT) for misconduct. The case made the national media and concerned the firm’s handling of claims from ex-miners suffering from vibration white finger under the government compensation scheme.
The law firm’s partners were found guilty of breaching their professional code of conduct for their monetary gain by taking on around 19,000 cases from a so-called ‘claims farm’ Zuko Legal. It was subsequently revealed that the firm had collected around £32 million in fees from miners’ compensation claims.
In May 2014, the Court of Appeal upheld a ruling stating that staff at Raleys were negligent in their handling of claims under the government compensation scheme.
Now a simple notice on the distressed business’s website says that representatives from Begbies Traynor have been appointed as administrators. A law firm based in Leeds has taken over all of Raleys remaining client matters.
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