Tony Guise discusses how solicitors can manage referrals properly to avoid the wrath of the regulator
The SDT decision in Tilbury highlighted the difficulties faced by solicitors when confronted by a government which has liberalised the market for civil claims, and a regulator enforcing compliance with a code of conduct at odds with that liberalised market place (see ‘Such a lonely word’, Solicitors Journal, 2 June 2009). Mr Tilbury did not find himself in trouble because of greed or poor service. His problems arose because he tried to remain competitive by accepting referrals of work from a claims management company as permitted by the rules. It was the manner in which the referrals took place that caused the problems.
Claims management companies are not going away, so how can solicitors ensure they manage referrals prop...