header-logo header-logo

The death of referral fees?

16 September 2011 / Dominic Regan
Issue: 7481 / Categories: Opinion , Fees , Personal injury
printer mail-detail

Dominic Regan welcomes the government’s u-turn on referral fees

The payment of referral fees in personal injury cases is to be banned. Yet again Lord Justice Jackson has got what he wants. This may presage other seismic shifts.

The position in Whitehall in the summer of 2010 was that solicitors who wanted to spend their money to secure work should be free to do so. In his report Common Sense, Common Safety last autumn

Lord Young identified concerns:
 

  • Those who paid out the most got the most.
  • A firm handing out these fees got one hundred times more cases than those who didn’t pay fees.
  • There was no correlation between payment and quality of work. Indeed, the higher fee remitted meant that the balance left to cover the cost of doing a proper job for the client was severely diminished.

Earlier this year the Legal Services Board published a report suggesting that since claimants were not bothered about these fees (which were borne by their own solicitor) we should leave be and have another look in 2013 (see Referral fees,

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

NLJ career profile: Liz McGrath KC

NLJ career profile: Liz McGrath KC

A good book, a glass of chilled Albarino, and being creative for pleasure help Liz McGrath balance the rigours of complex bundles and being Head of Chambers

Burges Salmon—Matthew Hancock-Jones

Burges Salmon—Matthew Hancock-Jones

Firm welcomes director in its financial services financial regulatory team

Gateley Legal—Sam Meiklejohn

Gateley Legal—Sam Meiklejohn

Partner appointment in firm’s equity capital markets team

NEWS

Walkers and runners will take in some of London’s finest views at the 16th annual charity event

Law school partners with charity to give free assistance to litigants in need

Could the Labour government usher in a new era for digital assets, ask Keith Oliver, head of international, and Amalia Neenan FitzGerald, associate, Peters & Peters, in this week’s NLJ

An extra bit is being added to case citations to show the pecking order of the judges concerned. Former district judge Stephen Gold has the details, in his ‘Civil way’ column in this week’s NLJ

The Labour government’s position on alternative dispute resolution (ADR) is not yet clear

back-to-top-scroll