Class Action Lawsuit Targets Collapsed McClure Solicitors
Former clients seek compensation over allegedly mis-sold family protection trusts across the UK.
1Legal Action Initiated
Addleshaw Goddard is preparing a class action-style lawsuit following the 2021 collapse of McClure Solicitors. The firm, founded in 1853, specialized in wills and trusts. Thousands of clients across the UK are now seeking compensation, claiming they were misled into purchasing Family Protection Trusts that failed to deliver promised financial safeguards.
2Trust Mis-selling Allegations
Counsel Patrick Barnett argues that these trusts were marketed under false pretenses, specifically regarding protection from care home costs and inheritance tax. Clients were reportedly advised that these trusts would secure their assets, yet many now face significant legal fees to regain control of their properties from the defunct firm's appointed trustees.
3Personal Financial Impact
Clients like 82-year-old Isabel McCue paid approximately £3,500 for trusts, only to find they must spend thousands more to remove McClure trustees. Many others, including Alistair Barclay, reported paying over £4,000 initially, followed by additional costs to restore their homes to family names after the firm entered administration.
4Scope of the Scandal
The scale of the issue involves over 20,000 trusts sold by the firm before its insolvency. Victims describe the situation as a scandal, citing emotional distress, family fallouts, and financial hardship. While Police Scotland investigated the collapse, they concluded that no criminal activity had been established, shifting the focus to civil litigation.
5Director's Defense Stance
Former director Andrew Robertson disputes claims that clients were misled, attributing the firm's collapse to the Covid-19 pandemic. He maintains that the trusts remain legally valid and beneficial, asserting that the firm provided quality service and addressed occasional errors at their own expense whenever issues were identified during the firm's operations.
6Group Proceedings Mechanism
Addleshaw Goddard is inviting affected individuals to register for group proceedings at Scotland's highest civil court. This legal strategy is designed to make redress financially realistic for those who could not afford individual claims. By consolidating similar experiences, the firm aims to hold the responsible parties accountable for the alleged mis-selling practices.
7Ongoing Administrative Challenges
When McClure entered administration, another firm, Jones Whyte, took over the files. However, former clients continue to struggle with the administrative burden of unwinding these trusts. The process is described as a legal nightmare, with many families unable to sell their parents' homes due to the complex trust structures left behind.
8Future Legal Outlook
The outcome of this class action could set a significant precedent for how legal firms are held accountable for advisory services. As the case moves toward Scotland's highest civil court, thousands of families wait to see if they can recover their lost fees and restore control over their family assets and homes.
Original article: BBC News – Scotland — Class Action Lawsuit Targets Collapsed McClure Solicitors