Clients' freedom of choice of solicitors is gradually being eroded and the situation with the trade unions is very disturbing.
When enquiries are made on behalf of a client concerning the possibility of legal funding the following issues arise.
The union will write direct to its member and attempt to poach that client to transfer to a solicitor on its panel. Cover will only be provided if a panel solicitor is instructed. The panel is of course closed and no further solicitors will be considered.
The union states that the client is not being correctly advised concerning funding methods unless he is advised to use the solicitors from its panel. In effect suggesting the existing solicitor is negligent if he continues to act.
The union is not obliged to provide funding once proceedings have been issued, unlike the insurance industry. Therefore, a cartel of solicitors' firms has now emerged, which is on the union panel. No doubt those solicitors are paying referral fees. They do not need to provide a good service or market themselves to generate new clients.
Instead, they merely wait for a client with an existing solicitor to contact the union and the client is then forced to use the solicitor on the panel.
This is an area that needs to be considered in greater detail. I appreciate that the unions are attempting to protect the interest of their members, but this needs to be balanced against the client's free choice of solicitor (at least this is allowed by before-the-event insurers once proceedings have been issued).
Also, the union's real motives need to be considered, especially with the advent of referral fees.
Anthony Hunt, Liverpool
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