Further to the recent announcement that referral fees for Personal Injury cases are to be banned, Justice Minister Jonathan Djangoly has confirmed that flouting the ban will not be a criminal offence, but will be enforced by the legal profession’s regulators instead. He commented that the Ministry of Justice has “veered away from a criminal offence”, which is a “very blunt instrument”.
A criminal offence would have to be proven beyond reasonable doubt and “it would be very difficult for a jury to convict on the basis of the complexity of these arrangements”, Mr Djanogly said. By contrast a regulatory offence which would be enforced by the Solicitors Regulation Authority and others would ensure that “the principle of what’s happening can be looked at… and a view taken”.
In other news, Mr Djangoly has been stripped of his role as regulator of claims management companies following the discovery of a conflict of interest – his two children were discovered to own shares in claims management companies run by his brother in law.
