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'Modern-day King Midas' who cashed in on miners' suffering
MINERS' compensation claims have kept a legion of lawyers busy, but the issue of exorbitant legal fees and deductions has long been a cause for concern.
The tribunal in the case of two South Yorkshire solicitors who made millions from the scheme heard that the Government expects to pay out a total of 6.9bn in compensation to miners and their families.
The compensation scheme, set up because of British Coal's lack of safety standards, led to an "unprecedented number" of claims, with 750,000 registered countrywide. The claims relate to miners suffering conditions such as respiratory disease and Vibration White Finger (VWF), which is caused by using vibrating tools.
The Government pays the costs of successful claims, but some solicitors have charged miners "success fees" – as well as recovering the fixed costs.
These fees were often charged in cases where the miner was introduced to the solicitor by a claims handler, who would also be paid, according to the Solicitors' Regulation Authority (SRA).
After a Parliamentary outcry in 2003, The Law Society, which represents solicitors in England and Wales, said it would accept complaints by miners that they had received poor service and successful complaints would win compensation.
It also promised to investigate whether the solicitors had breached their rules of conduct.
Since then, there have been investigations into 67 firms, of which about 40 have concluded.
A total of 25 firms have been referred to the Solicitors' Disciplinary Tribunal, which – prior to yesterday – had fined eight solicitors up to 15,000 each, and reprimanded three others. Lawyers from a further 17 firms are to set to go before the tribunal.
The SRA itself has reprimanded about 30 solicitors and has overseen the repayment of 350,000 to miners.
A spokesman said other firms, "probably influenced by bad publicity", have voluntarily decided to refund all so-called success fees.
Beresfords, which boasts on its website that it acts for more coal claim clients than any other solicitors' practice in the country, was the seventh firm to come before the disciplinary tribunal over miners' compensation.
The firm handled more than 80,820 claims for chronic obstructive pulmonary disease, settling 60,322 cases with payments averaging 2,508, according to a written Parliamentary answer given in October.
The tribunal heard that the company expanded from 10 employees in 1998 to 244 employees in 2004.
The panel was told that that year the firm had a gross profit of 8,758,743 and by 2006 the profit had risen to 36,205,805.
Labour MP John Mann, who has launched complaints against a number of law firms on behalf of miners, yesterday welcomed the decision on Beresfords.
"Beresfords represent all that is wrong with today's money-driven professional classes," he said.
"Jim Beresford is a modern-day King Midas, believing that everything he touched would turn to gold, but ending up as the man who would not listen.
"Even now Beresfords have failed to pay back many miners who they duped. I trust that cheques with compensation will be in the post by Monday."
Mr Mann said many more firms of solicitors were also facing tribunal proceedings, in what he described as "the biggest robbery from sick retired workers in British legal history".
Don Valley MP Caroline Flint also welcomed the findings.
"This tribunal decision is long overdue. How a firm's earnings can rise from a few hundred thousand a year to over 23m beggars belief," she said.
"This Government-run compensation scheme paid solicitors generously for the work processing the health claims of miners and their families. The double charging by some solicitors, highlighted by Labour MPs, was a disgrace."
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Saturday 11 February 2012
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