The Legal Complaints Service is taking a proactive stance to bring redress to former miners who have had money improperly deducted from their compensation awards, writes Shamit Saggar


The Legal Complaints Service (LCS) is planning a scheme that will use the Department of Trade and Industry’s (DTI) database to reach out to former miners who have had money improperly deducted from their compensation awards.



This move, which is seen as highly controversial by some members of the profession, hopes to see substantial money that rightly belongs to miners returned to them.



For the past five years, complaints have been received from former miners, initially via MPs acting on behalf of their constituents in mining areas, stating that some firms were charging claimants for work as success fees or administrative charges. This could result in as much as 25% being deducted from the compensation awarded, despite the generous costs payable to firms and others processing complaints for vibration white finger and chronic obstructive pulmonary disease under the government schemes.



The LCS believes these practices are unethical and that many solicitors recognise the reputation of the profession has been tarnished as a result. There has also been a growing level of media indignation about how former miners – many elderly and extremely vulnerable – were exploited by members of the profession.



The compensation schemes for former miners and their dependents were established in October 1999 and their administration is overseen by the High Court. They work by paying solicitors, and others, a fixed fee for dealing with claims via what is in effect a fast-track mechanism. The costs to be paid to solicitors were fixed by an agreement between the DTI and the Coal Health Claimants Solicitors Group.



It is widely acknowledged that the terms were extremely generous to solicitors, especially for those doing bulk claims. From early on in the scheme’s life, this practice attracted a deal of critical comment from members of both Houses of Parliament and from the media.



In January 2004, the Law Society’s compliance board, after formulating its stance about improper deductions, wrote to all firms involved in the scheme, enclosing a copy of the board’s policy statement. It indicated that these practices were likely to be considered inadequate professional service should a complaint be made. The board went further and asked any firms that had made such deductions to immediately and voluntarily take steps to contact their clients and repay any improper deductions. However, very few firms appear to have done so.



It quickly became apparent that the scale of the problem was far greater than initially realised. Soon there were regular and increasingly critical statements being made by MPs such as John Mann and Kevan Jones, and members of the House of Lords such as the passionate campaigner Lord Lofthouse of Pontefract. Their campaigning has resulted in the naming of firms and individual solicitors.



The media hostility towards the small percentage of the profession that has brought about this situation continues to grow. It has caused serious damage to the reputation of the profession and has overshadowed the excellent work done by the majority of firms involved that have recovered appropriate compensation for their clients.



The LCS takes its role extremely seriously and is intent on achieving fair and speedy redress for the affected miners. We are currently in the position of having to decide how best to use our powers to provide redress for miners, or indeed the personal representatives or dependents of deceased miners, in the face of intense media interest, political and ministerial pressure and a degree of resistance from sections of the profession.



We have decided to deal with the matter by encouraging potential claimants to make complaints, so that we can work towards seeing the inappropriate deductions refunded.



Last year, the LCS began to advertise in mining areas to both raise awareness of the issue and provide information about our role. Then, following a meeting with the DTI’s coal health minister Malcolm Wicks MP last November, it was agreed to work together to reach out to former miners in a proactive manner.



The DTI has agreed to assist us with a single pilot scheme to be conducted in a constituency heavily populated by former miners and their dependents. However, the department has restricted its assistance by only committing to provide information about miners whom it believes are still alive in this constituency. Nearly half of the claims made under the scheme were made by the relatives of deceased miners.



This work began earlier in the month (see [2007] Gazette, 12 July, 1). While a small minority of people continue to question whether the LCS should take this proactive stance to bring redress to former miners, far greater numbers agree with our stance that it is morally the correct way to proceed.



Professor Shamit Saggar is chairman of the board of the Legal Complaints Service