Advisers have been offered hope of recovering a percentage of endowment misselling payouts caused by the endowment mispricing scandal, with a law firm preparing to take on a surge of claims against providers.
Shakespeare Putsman LLP is offering a no win, no fee service to advisers looking to claim back the part of the missale payout unfairly skewed upwards by providers mispricing Lautro premiums between 1988 and 1994.
Under the Civil Liability (Contribution Act) 1978, a defendant can bring a claim against other parties if they believe they are not solely responsible for the loss within two years of the original ruling.
Last month, Money Marketing revealed that legal experts believe mispricing of Lautro projections resulted in many advisers paying out too much compensation. Estimates suggest advisers have paid out around £83m in endowment missales.
SP LLP is looking to take on claims from the period awarded in the last two years, hoping for a lead case per insurer.
Fishburns Solicitors partner Harriet Quiney says that the route is potentially viable but advisers face an uphill struggle. She says: “Even if advisers can establish it was reasonable to rely on unrealistic maturity figures given to them by providers and that they have paid out more compensation than they might otherwise have done, they face procedural obstacles.”
SP LLP partner Gareth Fatchett says: “We have never done no win, no fee before but there are thousands of unjust cases out there to be corrected.”