Legal aid practices that took over public funding certificates from other firms are being hit by a claw-back exercise by the Legal Services Commission (LSC), over bills that they say were nothing to do with them and which were accrued years ago, it was claimed this week.

Manchester firm Clifford Johnston & Co is one firm that has become involved in a dispute with the LSC after it was told to pay a 'significant amount' relating to legal aid certificates that were granted to Clifford Chapman, which it took over in 1999.


Partner David Johnston argued that it should not be held responsible for work done by another firm where the certificates had been opened, worked on and closed. 'In any event, this claim mainly relates to certificates that were discharged over seven years ago,' he argued. 'For reasons best known to itself, the commission has not pursued the matter until now.'


The Legal Aid Practitioners Group (LAPG) said it had received several complaints from firms faced with similar problems. 'LAPG believes that to claim back payments after more than six years may amount to maladministration,' director Richard Miller said. 'Since firms are prejudiced by this failure to follow up payments on account promptly, we believe that the LSC should refrain from doing so. Given the number of previous recoupment exercises, and the regular reporting requirements, there is no plausible explanation for the appearance of outstanding matters not previously pursued.'


But the LSC argued that it had a duty to claw back public money when payments had been made on account but where firms could not account for work done, adding that complex cases often went on for several years before payments were reconciled at the end.


A spokesman insisted: 'When Clifford Johnston & Co took over Clifford Chapman as a going concern in 1999, they agreed what work they would take forward. They assumed liability for payments-on-account for work inherited under this independent business transaction.'