Lawsuit forces Lancashire business into closure

The owner of a law firm in Ormskirk, West Lancashire has been forced into insolvency after a judge awarded £148,000 in compensation to 21 former employees.

The Kennedy Partnership, run by senior partner Stephen Hathway, closed down suddenly back in October 2009 due to trouble paying insurance premiums. The law firm’s employees were reportedly given just 24 hours notice that they had lost their jobs, resulting in a mass lawsuit against the company.

A judge in Liverpool awarded the claimants £148,427 in compensation between them, as they are owed two weeks of wages, holiday pay, notice period payment and redundancy compensation.

However, the victorious ex-employees may not see that money for several months, as Stephen Hathway has filed for insolvency and is without a professional indemnity insurance to cover the claimaints’ costs.

The sudden closure of Kennedy Partnership has also had a considerable knock-on effect in the local area, with ex-staff and clients all concerned about what happens to their cases, files, wills, title deeds etc.

The firm had been running for 200 years, but was closed and financially ruined partly due to the cost of their professional insurance cover, which is why it’s always advisable to make sure you get the best deal from a reputable broker.

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