Litigation Letter
The referral fee genie stays out of the bottle
A recent report prepared for the Law Society found it difficult to identify any firms conducting any great volume of personal
injury and road traffic accident work who are not buying it by paying referral fees. On average, the number of personal injury
cases conducted by firms paying referral fees is one hundred times that of those which are not paying. The main sources of
introductions are insurance companies, who are the first point of contact for potential clients particularly in road traffic
accident claims, claims management companies, which are able to identify potential cases far more quickly than most solicitors,
car repairers and hirers. Firms which do not pay for referrals rely solely on their reputations, work from previous clients
and other solicitors. There is very little of this work available. Also being sold are claims for accidents at work, industrial
disease, public liability claims, and slips and trips.