People affected by the collapse of historic law firm McClure solicitors in 2021 have been invited to join a group action that could secure them compensation. Law firm Addleshaw Goddard is planning to raise group proceedings at Scotland's highest civil court with the aim of securing compensation for eligible clients.
McClure went bust in 2021 at the height of the coronavirus pandemic, with tens of thousands of customers across Scotland and England affected. All of its casework, including wills and property trusts, was subsequently passed to Glasgow-based firm Jones Whyte. Many former McClure clients have paid thousands of pounds in fresh legal fees following the firm's collapse.
Impact of the collapse
While the firm was founded in Greenock, McClure also had six offices in England and Wales and was licensed to practise on both sides of the border. At the time of closure, McClure had 20,000 trusts on its books. Some victims said they tried to sell a parent's home after their death only to find the owners were strangers listed as trustees of the estate, and had to pay thousands to resolve the issue. Others said the firm was listed as trustee and charged to be removed from paperwork.
Addleshaw Goddard is now inviting people who had Family Protection Trusts set up by McClure to register interest in proposed legal action in a civil case.
Group action details
Patrick Barnett, counsel at Addleshaw Goddard, told the BBC that thousands of people across the UK had been sold Family Protection Trusts by McClure. "We say those trusts do not do what the individuals who purchased them were told," he said. "They were sold on the basis that they would protect people from paying care home costs and were guaranteed to stop inheritance tax if that were to come forward. What we say is that those things cannot be guaranteed and therefore it's been advice which has effectively been mis-sold."
He said: "Bringing an individual claim may not be financially realistic for many of those affected. A group proceeding offers a potential route for people with similar experiences to seek redress collectively."
Reaction and response
Greenock MSP Stuart McMillan previously held a series of public meetings for McClure clients to raise their concerns. Reacting to the group action, he said: "This announcement is a welcome light at the end of the tunnel for the thousands of people who have faced uncertainty, emotional distress and financial uncertainty. These are hardworking people who believed they were making responsible arrangements for their futures but instead faced considerable distress and expense through no fault of their own. All individuals who obtained a family protection trust involving McClure, and relatives dealing with their affairs, now have the opportunity to join the action group and pursue the justice they deserve."
In a statement, McClure's former director Andrew Robertson said no-one was more disappointed than him that the business became unsustainable due to the Covid pandemic. He said: "We provided clients with over 20,000 trusts and, like most businesses, occasionally something went wrong. But that happened only occasionally and, when it happened, we put it right at our expense and compensated the client if there was any loss."
