Request for assistance regarding Solicitors Compensation Fund
Request for assistance regarding Solicitors Compensation Fund from PNLA member David Wingate contact: email@example.com Direct Dial : 0161 683 3155.
Dear PNLA members
I would be extremely grateful for any experience members may have had of Compensation Fund applications. My client has a judgment in respect of a professional negligence claim, his solicitors having long since entered insolvency. Not only is he missing out on compensation for loss of chance, but also in respect of adverse costs orders that his solicitor has left him with. Sadly for him, the firm was insured by Balva, who are also in liquidation. The client does not qualify for FSCS protection, so he has made an application to the Compensation Fund under Rule 5.1:-
“A grant may be made to provide compensation for loss suffered as a result of the civil liability of a defaulting practitioner or a defaulting practitioner's employee or manager who in accordance with the SRA Indemnity Insurance Rules should have had, but did not have, in place a policy of qualifying insurance against which a claim could be made in respect of such civil liability.”
Key to my question is the phrase “should have had, but did not have, in place a policy of qualifying insurance against which a claim could be made. This could be interpreted as:-
1. If there was insurance, then no claim can be made; or
2. If there is insurance but you cannot claim against it, then you can apply to the Fund.
If anyone could add to this, I’d be extremely grateful.