PI law firm to consolidate because of reforms

A personal injury (PI) law firm has announced that it is to consolidate its business ahead of the imminent whiplash reforms.

NewLaw has announced that it is moving most of its Bristol business to its Cardiff head office.

It said the changes are related to the Civil Liability Bill and the small claims limit for people injured in road traffic accidents (RTA), which was announced by the Ministry of Justice last week.

The firm said: “This is a response to the pending reforms in the personal injury sector and the need for the business to become leaner and more efficient in the post-reform environment.

“The outcome of this process will place NewLaw in the best possible position to focus on delivering its services effectively and efficiently and to support all of its stakeholders.”

It is not known if any jobs are at risk as a result of the move.

Firms who specialise in personal injury claims have been warned on the impact the reforms can have on their returns, with Carpenters chief executive, Donna Scully saying that “only the strong will survive”.

Then, the government’s own impact assessment estimated that the claimant lawyers will lose up to £81m a year due to falling numbers of claims and profits on each claim.

Ian Davies, a partner at national firm Kennedys, said: “For example, the definition of whiplash includes ‘neck, back or shoulder’ injuries that will be subject to the proposed tariff of claims for injuries of less than two years duration. But does this mean that a minor thumb or wrist injury [will] to sit outside of the tariff?”