Stobart looks to wider business services offering

LOGISTICS group Stobart is set to branch out further into business services after the “staggering” response to its fixed fee litigation service, Stobart Barristers.

The group has achieved registration from the Financial Services Authority for an insurance broking service, legal director Treveor Howarth revealed.

He says the Stobart brand – which is built around efficiency – is a good lever for the move into business services.

Stobart raised eyebrows in the business and legal community in May when it launched its pay-as-you go litigation service.

Stobart Barristers offers the public and businesses direct access to barristers for a fixed fee.

More than 1.200 barristers, including a number of QCs, have signed up to Stobart Barristers’ panel.

Trevor Howarth. group legal director of Stobart and head of the new business, which is based at 1 King Street Manchester, told TheBusinessDesk.com the new service can save clients large amounts on their legal bills.

“The response since May has been staggering – we’ve had barristers’ chambers from Bristol to Newcastle contacting us – as we are new route to market for them. It also gives them the corporate veil as it is us instructing them rather than individuals or businesses.

“On the client side we’ve seen demand for divorce and employment advice in particular, while we’ve also had inquiries from public sector bodies such as health authorities who are aware of the savings we can achieve.”

Mr Howarth, who was practice manager for criminal and motoring specialist Nick Freeman between 1999 and 2008, said the launch of the service to the public was born out of Stobart’s own experiences.

By instructing barristers direct – as everyone can under seldom-used Direct Public Access legislation – without engaging a solicitor, Stobart cut its legal costs by at least 50%.

Mr Howarth said he was unable to say how much the group – best known for its fleet of Eddie Stobart trucks – has saved since 2008, declaring “it’s a considerable sum”.

He said legal work around a case would be carried out by Stobart Barrister Support Services – a sister company employing a team of 20 paralegals – which he said would help drive down costs.

“We see considerable scope for growth in the market place. We believe we can offer the public a new way of accessing legal services using a model we have developed ourselves.

“It’s a flexible model and one that provides transparency of costs from the outset and clients can stop the bus at any time.”

“DPA has been around for around eight years but hasn’t been widely adopted because consumers don’t know where to look or which barrister to pick, leaving many to still have to rely on the advice of their solicitor.”

He accepts that many businesses and individuals have long-established relationships with solicitors, and the new service is about offering choice, control and cost benefits.