Manchester based personal injury firm Tranters has been granted legal aid and is set to issue proceedings in a case it highlight the potential conflict of interest between claims management companies and their panel solicitors.

Tranters claims that Blackburn firm Farleys failed in its duty to advise a client referred to it by Somerford claims that she was, in fact eligible for legal aid. The woman suffered back injuries when she was a passenger in a taxi. Farleys recovered damages of £7105 for her, but £2764.19 was deducted as a contingency fee, according to Tranters. This works out as a 39% - for a case with extremely high prospects for success.

Tranters partner John Barstow says the deduction was explained to the client by Somerford as follows 50% of special damages; 30% of general damages; plus VAT.

The client was later referred to Tranters by a local law centre because of the level of fee she had been charged. Barstow says she would be eligible for legal aid; a method of funding that would have left her damages intact. Tranters is seeking recovery of the shortfall, plus its costs -which amount to £7086 almost as much of the clients' original award.

Barstow says “We maintain that the duty on the solicitor to advise about funding as a personal duty. We say it can not be delegated to any one else- and this is what Farleys effectively did by entering into an arrangement with Somerford to accept referrals of clients.”

Michael Corrigan, partner at Farleys, said he couldn't comment because the claimant is no longer a client and because proceedings are pending.

Solicitors Journal