The Law Society has warned some 700 panel firms working under The Accident Group (TAG) scheme that they must pay back clients’ money charged for investigations or risk raising professional conduct issues over the way they handled those cases.

The Society issued guidance this week in response to a Court of Appeal ruling earlier this year that fees paid to TAG investigators Accident Investigation Ltd (AIL) did not amount to disbursements but were instead referral fees (see[2004] Gazette, 27 May, 1). The court called for panel solicitors to ‘take steps to regularise their clients’ position’.


> Chancery Lane has now advised the panel firms involved to check all their TAG cases and reimburse clients and former clients for any AIL fee paid from the client’s loan account, where the client has not otherwise been financially compensated for the payment.


It said: ‘Failure to do this could in itself amount to inadequate professional service and may raise issues of conduct.’ The guidance is not mandatory but will be used when considering issues of professional service and conduct in relation to TAG cases.


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