Law firm director blasts ‘egregious waste of money’ after failed SRA case

A law firm director pursued to a full tribunal hearing has hit back at the Solicitors Regulation Authority for wasting his time. Craig Cooper, managing director of Manchester firm Barings Law, and former partner Erich Kurtz were cleared of all wrongdoing after a four-day hearing at the Solicitors Disciplinary Tribunal. The SRA was ordered to pay £30,000 costs to Cooper and Kurtz.

The pair were alleged to have misled potential clients being signed up to group litigation claims and failed to obtain informed consent from clients. The SRA also accused the firm of failing to assess the claims to conduct due diligence under the money laundering regulations.

The SRA has said that misconduct involved in bulk litigation is one of the biggest risks to the public, and this was the first related case to be subject to a prosecution.

The allegations against Cooper and Kurtz, which were initially scheduled for review over seven days, concerned the firm’s work advocating for justice for clients of payday lenders, including Elevate Credit International Limited, also known as Sunny.

Barings Law was involved in the 2020 test case Kerrigan v Elevate, in which the High Court ruled that Sunny breached the requirements of the Consumer Credit Sourcebook by granting loans without adequate assessment of borrowers’ circumstances.

‘The allegations against myself have not only been baseless but represent an egregious waste of time and resources,’ said Cooper. ‘For years I faced unfounded accusations that diverted attention from critical matters. I am grateful that, despite these challenges, I have still been able to serve our clients to the degree they deserve.

‘The tribunal’s decision to award costs in our favour underscores the absence of merit in the SRA’s accusations and reflects a serious lapse in regulator focus and accountability.’

Kurtz, who is now a senior associate with national firm Hugh James, has yet to comment on the outcome. The full judgment and reasons will be published in around seven weeks, and the SRA will not comment until then.

Barings Law represents victims of mis-sold motor finance, mis-sold pensions and mis-sold business energy claims, among other areas. It also works in data protection claims and recently won a test case on Covid business interruption claims against insurers.

Cooper added: ‘Our commitment to innovation and consumer rights remains steadfast, and we will continue to stand against unethical practices to secure justice for our clients. I’m looking forward to returning to Manchester and continuing our work to secure compensation for the thousands of clients who depend on us.’