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09 September 2010 / Patrick Allen
Issue: 7432 / Categories: Features , Fees , Personal injury
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Reference point

What next for referral fees, asks Patrick Allen

The Law Society Council voted to permit referral fees in 2004 and new rules enabled claims companies and insurers to make open agreements for referrals. In the past, lack of transparency had caused consumer harm when services were deemed to be hidden referral fees and unrecoverable. Terms could now be developed which were advantageous to clients as they included minimum service standards and guarantees such as no deductions from damages. The stability of large volumes of work enabled firms to invest in IT and develop specialist teams.

The legal landscape has changed out of all recognition since 2004, especially in the areas of personal injury (PI) and conveyancing. Claims companies have grown and perfected their internet and TV advertising. They are regulated by the Ministry of Justice which does not report any great problems. This change in the landscape was confirmed in the 2007 report by Moulton Brown for the Law Society (Referral arrangements and legal services report 2007)—“We found it difficult to identify

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NEWS
Children can claim for ‘lost years’ damages in personal injury cases, the Supreme Court has held in a landmark judgment
Holiday lets may promise easy returns, but restrictive covenants can swiftly scupper plans. Writing in NLJ this week, Andrew Francis of Serle Court recounts how covenants limiting use to a ‘private dwelling house’ or ‘private residence’ have repeatedly defeated short-term letting schemes
Artificial intelligence (AI) is already embedded in the civil courts, but regulation lags behind practice. Writing in NLJ this week, Ben Roe of Baker McKenzie charts a landscape where AI assists with transcription, case management and document handling, yet raises acute concerns over evidence, advocacy and even judgment-writing
The cab-rank rule remains a bulwark of the rule of law, yet lawyers are increasingly judged by their clients’ causes. Writing in NLJ this week, Ian McDougall, president of the LexisNexis Rule of Law Foundation, warns that conflating representation with endorsement is a ‘clear and present danger’
The Supreme Court has drawn a firm line under branding creativity in regulated markets. In Dairy UK Ltd v Oatly AB, it ruled that Oatly’s ‘post-milk generation’ trade mark unlawfully deployed a protected dairy designation. In NLJ this week, Asima Rana of DWF explains that the court prioritised ‘regulatory clarity over creative branding choices’, holding that ‘designation’ extends beyond product names to marketing slogans
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