The first six weeks of 2016 neatly encapsulates the work we do for IPs throughout the UK. In this short time we have completed six cases recovering over £2.5m from insolvency claims. We never use CFAs, so there is no success uplift, and Manolete takes the full adverse cost risk for free. This therefore results in very high cash returns to the Insolvent Estates for which we work.
The smallest case was an £8,000 recovery – the case was resolved in just four weeks. Legal fees were just £600, resulting in the large majority of the proceeds being returned by the insolvent estate. This is a strong case study showing how the Manolete Model works very effectively even on small cases.
The largest case took over 12 months to complete – with a £1.8m settlement achieved at mediation. Legal fees were £230k (as usual we paid these as the case progressed). We do not use CFAs so no success uplift was payable. All adverse cost risk is covered by Manolete at zero cost to the case, so the majority of the £1.6m net proceeds was paid to the Insolvent Estate. A tremendous return for creditors and the IP – with Manolete assuming 100% of the risk.
A long-running misfeasance claim was also settled at £475,000. Legal costs were £54k, again zero ATE cost and therefore a majority of £420k of net proceeds was distributed back to the Insolvent Estate.
Two £100k claims were also resolved. One against a well-known high street retailer on a Breach of Contract case and one against a Director of a company operating in the Construction industry. A strong five-figure settlement was also achieved against a TV “Rogue Trader”. On all cases the legal costs were proportionate, the ATE cost was zero and therefore the large majority of the recoveries were paid to the relevant Insolvent Company.