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Was there not a potential "tortious interference" argument here?
The claimants details were provided for one purpose - so that he claims could be progressed, and not so that the claimants could be approached by the insurers for any reason whatsoever. The use of the details is a breach of the Data Protection Act and is therefore a "wrong" committed towards the claimant, which gave rise to them withdrawing instructions from their solicitors creating a tortious interference.
In the alternative is there not an implied (if not express) term in the solicitor's retainer that the claimant will not withdraw from that retainer simply to defeat the solicitor's claim for costs - thus interference with contract by the insurers.