Reported in the Law Gazette today that 30 of the top 200 law firms are in difficulty with a further 160 at risk with 8 in immanent danger.
Some you may say good riddance to bad rubbish which is fair enough, but on the other side of the coin, think of those people who for example have complex ongoing personal injury cases after a bad bike crash and they have to now have their case management passed to another firm who may not have the same interest or expertise.
Anyway, full story here
If they are being massive mismanaged from a financial aspect, then what is the problem? What is the difference from any other industry?
Banking got bailed out (and should not have been in my opinion, certainly not to extent that it was and several of the banks should have been allowed do die), should the law firms whose partners have no doubt been raking it in like greedy bankers be bailed out?
If they have been working with a bad business model then they surely deserve to go out of business.
Presumably the Government’s proposals to limit legal costs in civil cases and contact out all legal aid to a very limited number of massive law firms will have an impact. However, the suggestion from reading that and other articles, is that it is the ban on referral fees that is a significant factor. In other words, firms have been paying customers such as insurers and accident management companies to get cases referred to them and from April this was banned. They can now only compete on price and service and are struggling.
Competition !!!:crazy: have to compete on price and service ??? :blink: BLASPHEMY