Legal News

Leamington Lawyers Welcome Government Ban On Compensation Claim Referral Fees

15/09/2011

Leamington solicitors Blythe Liggins have welcomed the government’s plan to ban referral fees in personal injury litigation.
The Rugby Road law firm said they were delighted that the government had listened to the Law Society’s argument for the ban, which will prevent insurance companies, claims management companies and others from receiving referral fees for passing on details of accident victims to third parties.
Such practices have been blamed for inflating the number of personal injury claims in the UK and for driving up the cost of insurance premiums.
Joint senior partner Richard Thornton said: “The Law Society has been calling for just such a ban for two years and I’m pleased that ministers have finally listened.
“We welcome the ban as we have never paid referral fees in respect of motor claims. We are happy to take instructions in respect of genuine legitimate claims to ensure that clients who have been wronged receive just compensation. We then act on a no win no fee basis as, since the withdrawal of legal aid, many of them would otherwise be denied justice.”
Peter Lockley, a solicitor with the personal injury department at Blythe Liggins, said the firm assessed each claim before taking it on and if it was not considered legitimate, or had a low prospect of success, they would not proceed.
“That has always been our policy. The sad thing is that referral fees have generated their own industry on the back of claims. They have caused the focus to shift from those people who have a legitimate grievance, having suffered loss and injury at the negligent hands of others, to organisations making money from misery with no thought for those genuinely aggrieved,” said Mr Lockley.