Patrick Allen provides a progress report on Jackson & the PI market—nine months on
In April 2013, the civil justice system was subjected to unprecedented change with the introduction of the Jackson reforms and abolition of nearly all civil legal aid. Where are we nine months on?
Referral fee ban
The structure of the personal injury world has changed. The ban on referral fees for PI work has largely removed the ability of small and medium sized personal injury practices to acquire clients at affordable cost from claims management companies. Their viability is therefore now in question as the flow of new work dries up and pre-April work is completed.
Following the ban, larger schemes have adapted their models to comply with the rules, particularly to ensure that clients are put in touch with the solicitors rather than the other way round. The SRA is policing the ban but without great relish as consumers did not suffer any detriment from referral fees.
Many smaller PI firms are closing, selling their cases at a discount
