The headliners in the recent Court of Appeal Potter judgment (a win for PPI2 claimants and the Plevin litigators and CMCs representing them) are powerful and many. The judgment is also expected to impact other credit product claims (more…)
Increasing pressure from the FCA and the news that large CMCs will not renew their regulator licence will impact the Plevin litigation market in the coming months. CMCs will have to act fast to instruct law firms before the inevitable court backlog starts.
On the back of a successful year, thanks to growing demand for our litigation funding products, we are recruiting for three new roles to expand our auditing, investment book and IT departments. (more…)
Potter has the potential to impact on all types of credit claims, not just PPI, when the case lands in the Court of Appeal in January 2021 – but what does it mean for law firms handling Plevin litigation now? (more…)
We have collaborated with the Alliance of Claims Companies (ACC) to create a sustainably funded and resourced ‘Plevin Panel’ to offer a powerful solution for CMCs pursuing Plevin through litigation. (more…)
Headlines of law firm redundancies are rife and are set to dominate when the Job Protection Scheme ends. Funding is also big news as firms look beyond CBILS Loans to access cash, quickly. (more…)
The consumer press has this week championed successful case studies covering new settlements for PPI consumers, achieved by law firms that are leading the way in Plevin litigation. (more…)
Our third Plevin Forum was held in July 2020 and was the largest event we’ve held to date. The Forums give claimant firms the opportunity to share and discuss the latest market intelligence on Plevin litigation.
It’s almost a year since the FCA’s much publicised PPI deadline of August 29th which was intended to bring an end to PPI misselling claims. (more…)
COVID-19 has presented significant challenges in the way we all must conduct business, and the practice of law is no exception. (more…)
Covid-19 is impacting businesses across the globe. We wish to assure you that SpectraLegal remains open for business and committed to maintaining the unparalleled standard of service to which our clients are accustomed.
To our Friends, Partners and Investors,
These are unprecedented times indeed, Spectralegal sincerely hope you, your colleagues and family are safe and well.
SpectraLegal are launching 2 new products which provide solutions to the common challenges faced by all litigation practices.
The SpectraLegal Finance Group is very pleased to announce it has entered into a transaction with Waterfall Asset Management, LLC to provide £100 million in finance for its European legal finance business (more…)
The recent Court of Appeal ruling in Budana v Leeds Teaching Hospital NHS Trust was greeted with a large sigh of relief and has been widely welcomed by solicitors in the claimant PI sector. (more…)
Thanks to a consultation curve ball over the way the Personal Injury Discount Rate is set, claimant practitioners (who, only weeks ago were celebrating the new rate of -0.75%) are increasingly finding themselves in a settlement limbo that has consequences for both the client and the firm: a lack of cash flow.
We recently chaired a roundtable debate bringing together some of the leading lights in the industry to discuss the various challenges that firms currently face and what firms can do to help build towards a sustainable future.
Show your practices the same care you devote to your clients, warns Matthew Gwynne
Matthew Gwynne: amazed how often solicitors overlook these dangers.
Setting and keeping costs budgets are a good discipline, even where this isn’t mandatory and however unclear the rules may be, says Matthew Gwynne.
Our Business Development Director, Matthew Gwynne, discusses the recent NHSLA report.
With spiralling court fees in particular, it is no surprise that there is more demand than ever for disbursement funding. But can you recover the interest and charges under the loan from the losing defendant? (more…)
The recent news that directors of a collapsed law firm admitted to allowing its client account to be used as a banking facility leaving creditors with a £14m shortfall, highlights the very great challenges faced by PI law firms.
Unpredictability, particularly when it comes to cash flow, is often the only thing that seems certain in the world of PI. However, no matter how bad things get it is absolutely crucial for firms to adhere to the rule that client money is not the firm’s money and under no circumstance is it a financing option, not even for the short term. This includes unpaid professional disbursements received, which must be transferred to the client account if they are not paid. They cannot be left in the office account and used to fund the business.
Difficult as it might be, PI firms have to trade with the funds they have available and hold their nerve under pressure.
Of course, it is completely understandable why some firms get tempted when money is tight but in our experience the worst thing they can do is focus solely on cash collection through any means. A situation whereby the money comes first and the client comes second often leads to cases being settled too soon and at a lower value. Such an approach only sacrifices profit for cash and builds a significant professional negligence risk in the business.
A major problem for claimant PI firms is identifying in advance the appropriate amount of working capital they need to fund the business and this is often the cause of cash flow pressures. It is not a straightforward process and needs a thorough understanding of how different case types and litigation strategies impact cash flow and working capital requirements. In our experience, those firms that proactively analyse their past cases and use these insights to predict future performance tend to be more successful at navigating the cash flow uncertainty of running PI cases. After all, knowledge is power.
Most firms have some sort of case management system in place and so already have the ability at their fingertips to better understand their case load and make accurate predictions around future performance and cash availability. Yet, failure to keep accurate, detailed and consistent records is a common problem.
We try to help the firms we work with to gain real-time clarity on the current state of all their cases, no matter how big the volume. Only once you have this information can you know the real value in your business and make accurate future predictions.
Those with expertise in PI will know that there is no easy way to value WIP without first knowing what lies beneath. Factors such as work type, hourly rates applied and recovered, proportionality, risk assessment, case length, quality of expert witnesses and likely fee income to be derived are all crucial factors in assessing the value of past WIP and future potential, and go into the melting pot of cash flow prediction and profit management in a PI business.
Banks, insurers and funders continue to be active in supporting PI law firms in straightened times, yet in a market when the focus is increasingly on fixed-costs and with future uncertainty over the small claims limit and a general damages ban for soft-tissue injuries lurking, PI firms will increasingly be expected to demonstrate a thorough understanding of the value in their own businesses and have an ability to model the impact on cash flow and profitability that these changes may bring at their fingertips
Steve Carter is COO of SpectraLegal