English Law Society: Referral fees "treat clients as commodities".
On Monday the 4th of July, as our American friends were celebrating Independence Day, the Law Council of England and Wales were addressing an issue that calls into question the independence of solicitors - referral fees.
Our colleagues in England & Wales have wrestled with this issue since the practice was allowed just a few years ago. It's all come to a head due to the practice of insurers’ charging referral fees to pass on personal injury cases to claimant lawyers.
Society President Linda Lee summed up the professional body's views: ‘We are asking the government to step in and ban a practice that is ethically wrong, treats accident victims as commodities for sale and adds no value to the justice system.’
The Society is seeking a ban on all referral fees, not just those in the PI sector, as they add ultimately to the costs to clients and muddy the fiduciary duties of solicitors to act in the best interests of clients without regard to self-interest.
Referral fees are allowed under our current Qld and future national solicitors' rules, albeit with client consent. Does this amount to "treating clients as commodities"?
What say you? (You need to register to make comments but can do so anonymously).
The reality is that referral fees are a direct attack on fiduciary principles. You can't simultaneoulsy claim to be working for the best interests of your client - free from any self-interest - while you're trafficking in clients and trousering the proceeds.