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Personal injury firm loses £4.5 million claim that referrer didn’t deliver cases as promised

A personal injury law firm has lost its £4.5 million claim for legal expenses after an insurance underwriting agency allegedly failed to deliver on the expected number of referrals for the law firm.

The law firm failed in their bid to convince the High Court that there was a binding agreement between themselves and the insurance agency between 2006 and 2011 at a time when referral fees were legal.

The deputy High Court judge ruling on the case said that “there was insufficient evidence to back up the claim that the insurance agency had promised to refer around 100 ‘acceptable’ road traffic cases, as well as 40 employer’s and public liability cases, per month.”

The law firm also claimed that the insurance agency had agreed to provide another 100 referrals from another insurance provider per month which in total equated to an approximate loss of profits of around £4.5 million for the personal injury firm.

In a statement, the firm said: “We will seek to appeal the judgement because we consider that the judge has, in error, misconstrued the contract between the parties and misinterpreted the factual evidence before him, which, in turn, fundamentally undermines his Lordship’s findings.”

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