Paul Bennett, of Shrewsbury employment firm Bennett’s Legal, said until the ruling people in Shropshire were being paired with firms in Newcastle or Plymouth rather than being allowed to use their own local solicitors.

The ruling clarified that Before The Event (BTE) insurers, who cover policies for legal expenses, cannot reject a policyholder’s choice of a non-panel solicitor.

Mr Bennett explained that people take out BTE insurance for legal costs often with a policy for their home or car.

He added the ruling was to be welcomed and said the case had clarified the important issue of charge-out rates for both clients and solicitors.

The ruling, won by a London law firm, marks a major success in the long-running battle over the extent to which BTE insurers can fetter their insured’s choice of solicitor.

“This ruling means Shropshire’s consumers can choose their own expert solicitor,” he said.

“It also underlines the importance of client choice and this should be respected at all times, especially in complicated matters.

“It was clearly highlighted in the case that when it comes to specialist areas such as employment law the choice of solicitor is particularly crucial and therefore it is only right that the policyholder should have the final say.

“This case allows people to come to us for expert employment advice and will insure their choice is respected. We very much welcome the clarification on this issue.”