Bassetlaw Labour MP John Mann said the decision to force Barnsley-based Raleys, official solicitors of the National Union of Mineworkers, to itself pay compensation to a former miner it charged for a vibration white finger claim would set an importan
t precedent.
Although the Law Society did not order the full repayment of the £652.85 the former miner was obliged to pay to the NUM for processing the claim, it did order Raleys to repay £300.
It was found that Raleys had not adequately explained the cost of its service – a service which most solicitors provided free.
Mr Mann, who has championed the cause of miners charged for compensation, said: "This opens the floodgates to thousands of compensation claims going in against Raleys and other solicitors who charged for claims."
He said he welcomed the adjud-ication in favour of one of his constituents and would be urging anyone who was charged to either contact the Law Society or their MP to consider claiming compensation from the solicitors involved.
Solicitors who took part in the miners compensation schemes for both vibration white finger and respiratory disease all had their legal fees paid by the Department for Trade and Industry as part of a handling agreement.
The Government has been heavily critical of firms which charged fees on top and pressed those involved to voluntarily repay the money.
Raleys says the money it charged, through an administration fee and a union contribution, all went to the Yorkshire area NUM. Those who paid therefore received the benefits afforded union members.
The money was also used as an insurance to cover those claims that failed or needed Raleys to take legal action outside the Government-agreed handling scheme.
David Barber, partner at Raleys, said: "We are considering a judicial review. It is therefore inappropriate for me to
comment relating to this adjudication.
"We do not agree with the Law Society decision. It fails to reflect the very high performance we are able to offer clients."
Raleys has received £41m in fees paid by the Government after handling thousands of compensation claims. The exact amount paid on to the NUM is not known, although it does run into millions of pounds.
