In November 2017, the Law Society secured orders against non-solicitor businessman David Smyth and his company Agenda Computers Limited, under section 18 of the Solicitors (Amendment) Act 2002.

In this case, Mr Smyth and his company were ordered to cease operating a prominent claims-harvesting website that was operating in contravention of the Solicitors Acts, and were directed to provide the Society with the names of all solicitors who have received referrals for personal injury claims via the website.

Claims

Mr Smyth swore an affidavit and the Society received a list of 17 solicitor firms that were in receipt of claims referrals from his company.

As part of its ongoing investigation into the ‘claims-harvesting’ industry, the Society notified the principals of each of the solicitor firms identified by Smyth that the Society was concerned that they were contravening, or have contravened, or are likely to contravene, the Solicitors Acts and/or the 2002 regulations.

The Society requested responses from each firm principal, and all responses received from the solicitors were then referred to the Regulation of Practice Committee for its consideration.

At its meeting on 19 April 2018, the committee considered each response and, satisfied that any admitted dealings with the claims-harvesting website had been terminated, directed each solicitor firm to provide the Society with the written undertaking that:

• The firm principal and/or the firm will have no connection with any other person and/or website and/or enterprise that either engages in the activity of ‘claims harvesting’ and/or expressly or impliedly offers any inducement to make a claim for damages for personal injuries or refers to the provisions of legal services in connection with such claims,
• The firm principal will ensure that all future advertising commissioned by them in their capacity as solicitor is done in compliance with the Solicitors (Advertising) Regulations.

Further, three solicitors were called before the committee at its meetings on 12 July and 15 October 2018 to assist the Society with its investigations into the illegal practice of ‘claims harvesting’.

Costs

The legal costs of the proceedings were ordered against Mr Smyth and the company. These costs have been taxed, and the Society is taking the necessary steps to enforce the costs order.

The Law Society continues to take a strict approach against solicitors found to be accepting and paying for such legal referrals, and a breach of primary legislation in respect of such activities may constitute professional misconduct on the part of the solicitor, and may result in a referral to the Solicitors Disciplinary Tribunal.