Injured motorists faced reduced benefits if the changes went ahead, and Queensland lawyers laid blame for the spike squarely at the door of interstate law firms convincing motorists involved in minor incidents to chase payouts through the courts.

“Queensland lawyers have been unfairly copping the flak over this,” Mr O’Connor said. He added that NSW law firms, in particular, were profiting as they are not restricted by caps on the sums Queensland lawyers can charge for fees to pursue smaller claims.

“Queensland lawyers are sick of interstate lawyers with claim farmers’ relationships pirating on our system, especially as Queensland lawyers are blamed for problems.”

People with suspected access to insurance industry data — dubbed “claim farmers” — have been selling information about small claims to interstate law firms, which are then encouraging people involved in accidents to bring damage claims to courts, it was reported.

Mr O’Connor said that a spike in claims was driven by law firms outside Queensland working with claim farmers who sold files that would not be viable for local firms, “but interstate firms can charge what they like, even if the claimant ends up with peanuts”.

The Queensland government has now tabled legislation to ban claims farming in the state and level the playing field with fee caps for interstate lawyers, too. As it stands, Queensland firms cannot, by law, charge more than 50 per cent for a net settlement for their total fees, making it uneconomic to pursue small claims through the courts.

Mr O’Connor said injury payouts in Queensland are conservative and he has rejected any suggestion that the current system is generous, saying: “It’s actually quite the opposite. People get significantly less now than they did 20 years ago.”

He added that a ban on claims farming would reduce pressure on the state’s CTP scheme and should be welcomed by Queensland law firms.

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