Partner Abdulali Jiwaji comments in The Times in relation to the avenues available to small businesses looking to resolve disputes with banks.
Abdul’s comments were published in The Times, 31 October 2019, and can be read here.
“Members of the SME Alliance gathered earlier this week to mark the organisation’s fifth anniversary, but it was far from a happy birthday.
Formed by small and medium-sized businesses that allege that they are the victims of crimes orchestrated by the big banks during the financial crash, the group has campaigned relentlessly for restitution.
“SMEs [small and medium-sized enterprises] have found that the legal route often fails them,” says Abdulali Jiwaji of Signature Litigation, one of the few firms acting against the banks. “They find that they are unable to translate their sense of injustice into effective legal remedy. There are real gaps in the regulatory and legal coverage to protect them and the reality is that it is often very much a one-sided process.”
Although there is talk of third-party funding, this is unlikely to feature in relatively small individual claims. As Jiwaji points out, an attempt to club them together into a group action would be difficult when, in all likelihood, they will each be governed by specific circumstances.
In the case of any action, those highly skilled lawyers will be lying in wait for them, Jiwaji observes, and will “drag things out procedurally” to drain the resolve and the resources of the small business.”