Small ‘pure play’ personal injury law firms will become extinct once ‘big brands’ can offer legal services, Richard Langton, partner at national firm Russell Jones & Walker, told the conference.

Langton predicted that personal injury firms with fewer than 30 fee-earners will be driven out of the market by supermarkets and other well-known brands, once alternative business structures (ABSs) come into force.

He said these will take over personal injury firms, and lawyers will earn less working under their new paymasters. He added that increased competition will lead to reduced earnings for the law firms that survive a takeover.

Niche personal injury firms will have to grow considerably or merge to compete for places on legal panels, Langton predicted. ‘We’re talking about companies with big brand recognition and a lot of trust,’ he said. ‘They will have call centres open 24 hours. Small firms will be driven out. In 95% of cases, clients just want their compensation. This is what the big brands will offer.’