Solicitors dealing with mining claims came under renewed fire this week as the Law Society revealed it is investigating a number of firms over allegations of misconduct, while MPs have referred 'scandalous' cases to the fraud squad.

Responding to a Parliamentary debate held last week, where furious MPs accused solicitors and claims management companies of corruption and overcharging over coal health cases, Law Society chief executive Janet Paraskeva said hundreds of complaints and its own enquiries had raised concerns that some firms were guilty of misconduct. She said: 'As a result, on-site inspections have been made, and more are planned. The suspicions particularly concern improper payment of referral fees to introducers such as claims farmers and unions.' Ms Paraskeva said some firms might be referred to the Solicitors Disciplinary Tribunal.


Last year, the Law Society told firms to pay back money that was in excess of the £1,800 costs limit agreed with the Department for Trade and Industry (DTI) for coal-health claims. It has received 373 complaints about deductions from compensation and has dealt with 298, recovering more than £80,000.


MPs claimed the complaints were the tip of the iceberg. Liberal Democrat MP Paul Holmes said people were reluctant to complain as they felt foolish. Some firms 'have made a lot of money double charging', he said, but are not systematically reviewing their files to uncover this.


Labour MP John Mann said the firms involved were 'bringing down the name of solicitors across Britain'. He added: 'I do not believe everything is in order and have suggested that the fraud squad investigate because it is one of the biggest scandals I have ever seen.'


The MPs pointed the finger at ten firms that they believed were guilty of overcharging, colluding with claims managers or providing bad advice.


Labour MP Kevan Jones called for a meeting of MPs, ministers, the Law Society and other groups. Ms Paraskeva said the Society was already liaising closely with various politicians but would be pleased to meet any others to discuss the issue.


The Claims Standards Council said it had adopted a 'zero tolerance' policy towards members that breached the DTI agreement. Chief executive Anthony Burns-Howell vowed: '[We] will constantly monitor our members to make sure that they do not break any established rules. If they do, then we will investigate, and if found guilty they will be expelled from the Council.'