Categories:UK,West Midlands

Ex-client hits Challinors senior partner with bankruptcy petition

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  • Further to the question of sinsolvency and trading while not a going concern (is this an offence under the 2006 CA?)

    There is also the question of the professional conduct of those involved?

    On what basis did the LLP/firm or partners/ members(s) seek the loans, and what were the terms?

    The old adage holds true; 'at what rate would you lend a leg of lamb to a starving dog'? If the lenders were given full disclosure then the rate would be penal and most unlikely that the credit be advanced (if I am wrong can the lenders please contact me to pay for cat's next grand cru burgundy binge, he'll put his 'bits' on the line as security)

    It is not credible to suggest the lender would have advanced such amounts if they had been given the full facts and the likely outcomes; particularly as it has been posited that the SRA were engaged at the times the loans were made.

    It therefore is not unreasonable to suggest that the conduct of those seeking the loans can properly be described as following below the standard to be expected of a solicitor; if not meeting the full definition in 'Tann' or 'Twinsectra' or what ever the test is these days.

    If the above is correct then I cannot see how the decision that there are no grounds for intervention can be anything other than irrational'.

    I cannot believe that a smaller firm which borrowed from clients to fund liabilities that should have been provided for by the hypothecation of VAT receipts (isn't this an obligation imposed by VAT regs) when the practice was going down the toilet wouldn't have been intervened into.

    The remaining credibility of the SRA is being fast eroded by this slow motion car crash.

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  • Haliwell Landau was an early northern casualty deciding to add a shiny new office block to their shiny new suits. Around that time one of their partners Geoffrey Shindler was president of STEP, that illustrious group, which just really goes to show that one should stick to the business one knows.... Not that they were much good at that eirther as I know from bitter experience.

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  • Anonymous | 15-Aug-2013 2:48 pm - "I believe that the profession and the public have so lost faith in the SRA that the Law Society should call for a public enquiry into the actions (and inactions) of the SRA particularly in connection with the failure of Cobbetts, Atteys, Blakemores and Challinors. There are serious questions arising out of the SRAs conduct in all four firms. I pose the question "who is regulating the regulator ? or are they above the law!"


    The Legal Services Board are "regulating the regulator" and they know as well as the SRA that it is not in the public interest for an intervention in firms such as Challinors.

    Who knows what the SRA may find if they start to delve deeper and how much may subsequently have to be paid from the Compensation Fund. The result of an intervention could see large increases in compensation fund contributions across the board and higher PII premiums which would have a knock on effect of restricting the public's access to justice.

    Then of course there is the global reputation of our legal profession to consider, if it were found that members of the profession were routinely failing to comply with the professional principles and in some cases, the law. The effect on GDP and the economy generally could be devastating.

    No, the SRA are well versed in understanding and protecting the public interest, they know exactly where it lies and talk of incompetency, bad management are very much misguided. Wilful blindness is the way to go.

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  • Any more news on Challinors? No, everything has gone very quiet. The staff, as I understand, do not have information about where they stand either - most distressing for such a big firm.

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  • I think the punch line is: Even the insolvency practitioners RSM Tenon have gone into Administration! Lord help the professionals.

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