Watchdog: law firms, claims management companies and government rebuked on claims

A parliamentary watchdog has told solicitors, claims management companies and the government to get their act together over the way they deal with coal health claims.


In a report issued before Parliament was prorogued, the House of Commons trade and industry select committee said the government's mining health claims-handling agreement, which set costs for solicitors at £1,800 per case, was flawed from the beginning as the Department of Trade and Industry (DTI) did not anticipate the large number of claims that would be brought, leading to 'administrative and other unforeseen problems'. This caused 'delay, confusion and resentment'.


The committee said the design of the handling agreement had led to a growth in claims management companies, which have been accused of a campaign of cold calling and door stepping in mining areas.


It also criticised law firms that charged additional fees, but commended the Law Society for taking action over those firms by telling them to pay the extra money back.


Claimant groups and lawyers had fallen out with the DTI over minimum payments and fast-track schemes, although most problems have now been ironed out, the report added. The DTI lost a case over costs in the fast-track and was denied leave to appeal earlier this year. The committee called for any outstanding issues between the DTI and claimant representatives to be resolved by 'negotiation rather than confrontation'.


Anthony Patterson, a partner at leading trade union firm Thompsons, agreed there had been problems but said he was relieved that the fast-track scheme had been resolved.


A DTI spokesman welcomed the report and said it will respond in detail in due course.


Meanwhile, it has emerged that partners from leading Barnsley firm Raleys have been referred to the Solicitors Disciplinary Tribunal over the way they dealt with mining claims.


A Law Society spokesman confirmed: 'Seven partners from Raleys have been referred to the SDT for failure to comply with the Law Society's order to pay back clients' compensation.'



Raleys partner Ian Firth denied any wrongdoing and said the firm had a written a 'strongly worded' complaint to the Law Society and publications that had accused it of unethical behaviour. He said the firm had not been notified that it had been formally referred to the SDT. The Society spokesman said: 'We're sure we've gone through the proper procedures.'