The UK Law Gazette reports…….Unsecured creditors – including barristers’ chambers – are owed a total of £6.3m by the collapsed Birmingham-based human rights firm led by disgraced former solicitor Phil Shiner.
The report goes on to say
It emerged this month that Shiner’s former firm Public Interest Lawyers (PIL) is also still owed £700,000 by the Legal Aid Agency for work carried out before its liquidation in 2018. Shiner, the sole director, was struck off in 2017 after a tribunal found he had acted dishonestly in the aftermath of failed claims against the Ministry of Defence on behalf of Iraqi civilians. A progress report by the liquidator confirms an investigation into the handling of PIL’s affairs remains open.
Liquidator PCR (London) LLP was appointed in October 2018 following a winding-up order against the law firm in 2017.
PIL had £160,000 left in one company account and further funds are potentially recoverable from government departments and other third parties for costs orders made in favour of the firm.
Based on information from the company’s former costs draftsman, the total net value of the costs is estimated to exceed £700,000, although this amount is uncertain and subject to ongoing discussions with the Legal Aid Agency.
Even if the full amount is recovered, it will fall a long way short of the sum need to recompense 70 non-preferential unsecured creditors owed a total of almost £6.3m. The liquidator’s report confirms a number of these claims were from counsel chambers representing barristers who worked on cases led by PIL. A full report of these creditors claims has been put together and a dividend will be paid – although the quantum and timing of the payment is still to be resolved.