Legally Bharat

A West Yorkshire firm has been fined by the regulator for charging personal injury clients higher fees than allowed under the rules on damages-based agreements.

The Solicitors Regulation Authority found at least 26 client files where Proctor & Hobbs Limited had charged 35% from the recovered damages, in contravention of the rules on damages based agreements which state that a maximum of 25% can be charged.

All the clients were personal injury victims who had been involved in road traffic accidents.

Following the SRA investigation, the Bradford-based firm obtained independent advice which clarified it had not been entitled to deduct 35% from damages. It refunded any deductions over 25% and paid £100 compensation to each client involved.

The SRA found that Proctor & Hobbs had failed to uphold public trust and confidence in the profession. It had full responsibility for its conduct and had placed clients in disadvantageous positions. 

Cash

The SRA said its sanction had to provide a ‘credible deterrent’ to the firm and others and maintain public confidence in the profession. The firm was fined £10,730, which amounted to 2.8% of its annual domestic turnover. Credit was given for the firm’s swift and decisive action once the issue had been identified.

Proctor & Hobbs calls itself the ‘people’s firm’ and states on its website that many of its legal fees are discounted based on the client’s personal and financial situation. It claims to have plans to open offices in Marble Arch, London and Islamabad in Pakistan within the next 18 months.

Damages-based agreement regulations state that in claims arising from RTAs on or after 31 March 2021 where the amount claimed for injuries is not more than £5,000, a maximum of 25% of damages can be deducted by a firm for its fees.

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