Kennedys has been dropped by Tesco for personal injury claims work after the supermarket chain reviewed its relationship with the law firm's insurance team in the wake of its transfer from defunct firm Halliwells.

Tesco has opted to send the claims work to Plexus Law, which will share the mandate with existing joint adviser Hill Dickinson, with Kennedys learning of the supermarket's decision earlier this year.

The move ends a relationship led by former Halliwells insurance specialist Susan Liversidge that goes back more than five years. Liversidge moved to Kennedys to launch and head the Sheffield office last year, leading a 70-strong team from Halliwells.

Tesco's personal injury claims work had been expected to generate some 5% of the budgeted turnover for Kennedys' Sheffield office – equating to around £300,000 a year. It typically accounts for less than 1% of the turnover of Kennedys' overall liability group.

Tesco's decision was not part of a wider panel review, with the supermarket giant opting only to look at its personal injury claims work. The supermarket chain said it uses around 50 law firms, including Freshfields Bruckhaus Deringer and Berwin Leighton Paisner, and reviews all suppliers on an individual basis from time to time.

Kennedys senior partner Nick Thomas (pictured) said: "Tesco is a good client to have but obviously the client is the boss and they have decided to move away. We are sorry, but that is life. The firm, and that team in particular, is making a good business of tendering and winning work from new clients so we feel positive going forward."

Liversidge's team also acts for a number of retail clients, local authorities and insurers including Chartis, Veolia and Northern Foods.