Personal Injury Claim Settlement
The government has ordered the repayment of more than £50 million in collected legal fees that were collected from personal injury compensation settlements made to miners suffering from chronic lung disease or a crippling hand condition.
An independent review disclosed that more than 12 firms had received more than £10 million by the Department of Trade and Industry, 6 had received more than £30 million, and the leading 3 had received more than £50 million. The Serious Fraud Office is now conducting its own investigation of these payments and allegations that the firms deducted an estimated £10 million from miners' compensation on behalf of the Union of Democratic Mineworkers.
According to Malcolm Wicks, the Energy Minister, "If anyone has in any way been misinformed or hoodwinked into making a contribution to a trade union on the grounds that this is paying for their legal costs, when the legal costs are actually being paid by my department, then I think that's outrageous. That's very, very wrong." He further urged the Law Society to 'be seized by the importance of taking these issues forward rigorously and proactively'.
In response, the Law Society has agreed to meet with Mr. Wicks but said is is already investigating the 30+ law firms who have benefited from the £7.5 billion scheme in what it calls the largest professional misconduct investigation in its history.
Citing the revelation that of the total payments, £4.5 billion was paid to miners and £1.6 billion was paid to the various legal firms, Mr. Wicks said, "I think anyone would look rather aghast at the idea that only 65 per cent of the total expenditure will go to miners and their relatives."
He elaborated that if all solicitors who received any of the compensation awards were forced to refund those monies, the final costs to the legal profession would be at least £50 million. Some law firms have already volunteered to do so.
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