Law firm funder Heirloom Fair Legal has announced the launch of its own law firm, as well as the acquisition of data breach law firm Hayes Connor Solicitors.
As well as providing growth capital to Hayes Connor, Heirloom Fair Legal will use it as a platform to launch HFL Law, which aims to bring legal advice, disbursement funding and after-the-event insurance under one roof.
Heirloom Fair Legal, founded by Canadian entrepreneur Geoff Dover and lawyer Beth Hirshfeld (pictured), has provided more than £25m of funding to law firms since 2022 but has a long-term vision to create a more efficient and equitable claims process for consumers.
The acquisition of Warrington-based Hayes Connor, one of the first law firms in the UK to offer victims of large-scale data breaches access to justice, is an important step in realising it. Hayes Connor, which has four directors and 14 other staff, has settled over 1,900 claims since its launch in 2018, including cases against TFL, the Ministry of Justice and Tesco.
Hayes Connor will retain its branding and offices as part of the wider Heirloom Fair Legal group. Heirloom Fair Legal will provide technical assistance and capital to adopt technology and additional resources to grow its burgeoning business.
Dan Thompson, director of Hayes Connor, says: 'This is the beginning of an exciting new phase for Hayes Connor. The support and infrastructure of Heirloom Fair Legal means that we can focus on implementing our strategic plans, while helping them to develop their dynamic model for consumer claims.'
HFL Law has invested heavily in upfront triage, bespoke case management, administration and data processing tools that help lawyers to focus more of their time on advising clients.
Consumers with small claims often receive only 50% of the damages award, with the rest going on legal fees, insurance and funding costs but HFL Law expects its efficiency savings to drive this figure up, with 75% its near-term target. Heirloom Fair Legal is working with its law firm partners to do the same.
As part of the drive for a more ethical and cost-effective approach to claims, it has also developed more aligned structures for the entire claims ecosystem: Heirloom Fair Legal has agreed with work introducers that they will receive the majority of their compensation only if claims are successful, and is working towards eradicating the common practice of kickbacks and rebates between all of those involved in claims.
Geoff Dover is HFL Law’s managing director, supported by an experienced team. The law firm now has 28 staff and is looking to expand.
Mr. Dover says: 'The current claims market demonstrates a lack of efficiency, misalignment and a high degree of complexity. It is not delivering the access to justice that people need. We are working with our originator, solicitor, insurance, expert and counsel partners to drive positive change.
'The opportunity is there for everyone to have appropriately profitable businesses while operating ethically, driving down costs, risk and complexity for the claimants, the defendants and the system as a whole. There is a better way.'
He adds: 'Key to this is ensuring that all parties involved are aligned in a quest to get appropriate justice for aggrieved consumers.'
Heirloom Fair Legal will continue to provide bespoke funding solutions to law firms and their clients and has plans to make its after-the-event insurance available to other law firms in 2025.
In the longer term, Heirloom Fair Legal intends to close the loop by creating an adjudication process for claims too.
