Ross Harper solicitors ceases trading

One of Scotland's best known law firms has ceased trading following a decision by its interim judicial factor.

Staff at Ross Harper Solicitors, which was founded in 1961, were told about the decision at a meeting at its West Regent Street office in Glasgow.

A number of high-profile lawyers, including former First Minister Donald Dewar, worked at the firm over the years.

The Law Society of Scotland said the closure was the "end of an era".

Chartered accountants Henderson Loggie were appointed interim judicial factor earlier this month after The Law Society of Scotland, which regulates the profession, raised concerns about Ross Harper's accounting practices.

The appointment meant the practising certificates of the firm's partners were suspended.

Ian Mitchell, from Henderson Loggie, said Ross Harper had been faced with "extremely challenging financial circumstances".

All 23 of Ross Harper's employees, in Glasgow, Hamilton and East Kilbride, will have their contracts terminated.

Mr Mitchell said: "Some staff have already left due to the uncertainty and sadly those remaining will also now lose their jobs, the majority immediately. Normal redundancy terms will apply.

"Since my appointment we have taken all reasonable steps to continue trading but it became increasingly clear that under the extremely challenging financial circumstances which we found on our arrival it was going to be very difficult.

"My team and I would like to pay tribute to the co-operation we have received from staff. Without their support and help, a very difficult task would have been impossible."

A small number of staff will be kept on to assist with the finalising of client records, but no ongoing or new legal business will take place.

Mr Mitchell said his priority was "to ascertain the assets and liabilities of Ross Harper's", but he added that if a permanent judicial factor was appointed, all creditors would be entitled to lodge claims.

Clients who have funds with the firm are in a protected position and their claims can be channelled through the Law Society's guarantee fund.

But other creditors, such as former employees and suppliers, can only lodge claims through the firm.

The Ross Harper partners have until 10 May to lodge answers to the Law Society's original court petition for the appointment of judicial factor.

The Law Society of Scotland's compliance team carries out regular inspections of all solicitor firms in Scotland to ensure that they comply with rules on dealing with clients' money.

Lorna Jack, chief executive of the Law Society of Scotland, said: "Ross Harper has been operating for some 50 years and is one of Scotland's best known legal firms.

"The decision by the judicial factor to cease the firm's trading therefore marks the end of an era within the Scottish legal profession.

"It is however an important part of our role to protect client interests and seek the appointment of a judicial factor whenever we have concerns that client money is missing or, because the accounting records are so poor, we cannot tell if client funds are missing.

"This was why was applied to the Court of Session for the appointment of a factor in the case of Ross Harper."