Stourbridge solicitors shuts as partners face tribunal

The partners at Sanders & Co, in Hagley Road, say they are "bitterly disappointed" but have been forced to stop trading because of a dispute with their professional indemnity insurers.

The firm shut up shop on Thursday after 41 years, and can no longer take any work or continue to act for clients.

It comes as four solicitors at the firm face prosecution before the Solicitors Disciplinary Tribunal.

Following a referral to the tribunal from the Solicitors Regulatory Authority earlier this year managing partner Clare Taman, Michael Davies, Charles Fraser-Macanamara and his daughter Katherine all now face a five-day hearing in London in October.

The SRA said the allegations are, as yet, unproven but the tribunal has certified that there is a case to answer.

The tribunal has the power to issue unlimited fines, suspend a solicitor or even strike them off.

The allegation is that the firm had acted for a client "in relation to a complex overseas investment scheme and concurrently for individuals who invested in the scheme," in a situation where there was a conflict, or significant risk of a conflict, in a situation where there was a conflict, or a significant risk of a conflict of interests between the individual investors and "the interests of the firm and an individual".

It is understood the allegations surround the firm's involvement with the EcoHouse Developments scheme to build social housing in Brazil, which collapsed in 2014 owing investors more than £20 million.

Clare Taman and Michael Davies also faces allegations that they involved themselves and the firm "in a complex overseas investment scheme that was outside her or the firm's area of expertise and experience where there was no legitimate need for the involvement of a firm of solicitors; and permitted payments into and transfers or withdrawals from, the firm's client account which were not related to an underlying legal transaction or a service forming part of (their) normal regulated activities."

The SRA said the tribunal "will reach its own decision after considering all the evidence, including any evidence put forward by the solicitor".

Sanders & Co says in a statement on its website that its closure "is directly attributable to a dispute with our professional indemnity insurers".

Wills are being transferred to Cradley Heath law firm George Green Solicitors for safekeeping. Deeds will be returned to clients "as soon as possible".

The firm added: "The partners at Sanders & Co are bitterly disappointed at this turn of events but unfortunately do not have the resources to continue any further litigation with its insurers therefore the closure is unavoidable."