Law firm Slater and Gordon could be forced to pay out more than £500,000 in compensation after several clients sued the firm for being pushed to take out insurance policies because it was allegedly receiving “secret commissions” from the insurer.
The firm is currently fighting off more than 500 individual lawsuits relating to the allegations.
Slater and Gordon is a well-known for its personal injury (PI) work, including offering a ‘no win, no fee’ service.
The claims allege that Slater and Gordon would push people to sign up to after-the-event insurance polices with Elite Insurance, for which the law firm would then receive a commission from the insurer. Elite is now in administration.
Clients of the law firm were not informed about these commissions, the claimants allege.
In a judgment on Wednesday regarding 224 individual claims against the law firm, the judge highlighted there was a further 351 similar cases against Slater and Gordon waiting in the wings.
If the claimants are successful in court, then it could be costly for Slater and Gordon.
City A.M. understands that each person’s claim could range between £200 to £1000, depending on the size of the insurance policy they paid for.
Currently, there are more than 500 individual related claims against the firm, but if the claim is upheld, then this could open the door to more compensation claims.
The firm and lawyers for the claimants were contacted for comment.