Andrew Norfolk
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Solicitors have been ordered to pay back tens of millions of pounds from the profits they made by handling compensation claims for sick miners.
The clawback, which will save the Government an estimated £100 million, comes after a High Court ruling that lawyers have been paid too much for processing claims.
Some law firms that grew rich on the proceeds of the £7.5 billion scheme, set up to compensate miners with chronic chest disease, face a loss of several million pounds.
The judgment by Mrs Justice Swift represents a significant victory for the Department of Trade and Industry (DTI), which has responsibility for the liabilities of the former British Coal. The DTI had appealed against the level of costs it was being forced to pay solicitors for each claim settled under a fast-track procedure which was introduced in 2005. This was designed to speed up the settling of respiratory claims, many of which were taking several years to complete with the result that thousands of former miners died before they received any damages.
Claimants who take the fast-track option usually those with less severe conditions such as bronchitis have a spirometry test but do not have a full medical assessment.
For widows and other relatives making claims on behalf of deceased miners, the fast-track process removed the need to pass a rigorous testing of their eligibility.
The streamlined process involved less work for solicitors, who typically need to spend a maximum of seven hours working on each fast-track claim.
For their time they were being paid £1,769 plus VAT for each deceased claim and £1,561 for each live claim.
Those costs have now been cut to £1,192 and £1,103 respectively, which is still higher than damages paid to 70,000 former miners who brought claims under the coal health scheme.
The reductions are particularly significant for big firms that registered tens of thousands of claims and have settled a large number of them £98m through the fast-track process.
In total, 133,981 live and deceased claims have been fast-tracked, ensuring the payment of £227 million in damages.
The DTI estimates that the total saving which it will make from the judge’s ruling over the lifetime of the fast-track scheme will be in the region of £99 million.
An estimated £25 million will be saved from claims which have not yet been settled, while the bulk of the money, £74 million, has already been paid to solicitors’ firms and must now be paid back.
It was disclosed last week that Jim Beresford, the senior partner at Beresfords, a Doncaster-based firm which had been paid £98 million by the DTI for its work on coal health claims, was Britain’s highest earning solicitor in 2005.
He paid himself £16.7 million the equivalent of £45,000 every day from his firm’s profits for that year, the bulk of it courtesy of the DTI.
Unless there is a successful appeal against the High Court ruling, Beresfords and other high-earning law firms, such as Thompsons and Raleys, will each be forced to write cheques to the Government for several million pounds. Mrs Justice Swift noted in her judgment that a detailed study of the time spent by solicitors on each coal claim “gives rise to the strong inference that the work has been significantly less onerous than had originally been anticipated”.
Her ruling was welcomed by Malcolm Wicks, the Energy Minister, who said it vindicated the department’s determination to pursuing the matter through the Court of Appeal.
“We have said all along that the fast-track approach we have implemented for the lung disease scheme should require significantly less input by solicitors and should therefore incur considerably reduced costs,” he said.

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Congratulations Miners. In my opinion such claims soley for miners was/is disciminatory ! As a Steelworker for 30yrs who got injured /disabled at work, my injury claims sunk by ( late revealed) fraud/political involvement! Though trying myself /others cannot get our fraud/sunk cases re-opened WHY???
Stan The Man, Scunthorpe, England...UK
MPs, MEP's Now Lawyers is there no end to the "Fiddling" in this country .. and they say "Zimbabwe's President Robert Mugabe" is corrupt!
Geedale, leeds, west yorkshire
Our fast track claim in respect of my deceased father has now been passed to insurers CAPITA giving some hope of a speedy resolution to the claim--no such luck !!.Wehave now been asked by them to provide a copy of my father and mother's marriage certificate from 1932.We find this request unnecessary and bordering on insulting.Are they questioning my parentage or is it just another stalling tactic? CAPITA projected to generate £125 million worth of work from these miners claims.Is this request just another way of justifying their hyper-inflated costs?
BRIAN CONCANNON, COALVILLE, LEICS
The ruling by the Court of Appeal falls very short of anything like justice for either the miners or taxpayers. In most cases, the solicitors will still receive more than the claimants.
You just have to look at the firms that have appeared out of nowhere and made millions - Beresfords, Avalon, Delta Legal, Barber & Co etc. For every £1000 of taxpayers money these firms receive, they probably don't spend more than £100 dealing with the case. This is low risk, easy work (much of which is done by the defendant). You only have to look at the actual number of solicitors employed by these firms to realise that the majority of these claims are dealt with by low paid admin staff and have never been near the desk of a qualified legal practitioner!
These firms would still have made a killing at £500 a case, never mind the new figure of £1200/£1100.
Jon, Liverpool, UK
My father died in 1967 aged 63 whilst still employed by the N C B.Our claim through a firm of solicitors was initially made some three years ago and has still not been settled.
Fed up with filling in repetetive forms and having to pay out for copies of death certificates and copies of wills for both my mother and father we decided to accept the fast track offer of around £1200 which I calculate equates to around
£70 invested in 1967-a small price to pay for a mans life.
This was some nine months ago and since then we have had only one correspondence from the solicitors which put the onus on us to prove that my father ever worked for the NCB-25 years of hard work totally forgotten.
Throughout the whole procedure we have felt that we were being stalled and being made to jump through one hoop after another.Since any compensation we do receive will
be shared five ways with my brothers and sister we do not feel greedy It is appalling that solicitors should get more for
7hrs work.
BRIAN CONCANNON, COALVILLE, U.K
Sorry Gernblan from Bromley/Winnipeg, but as a UK taxpayer (and also trainee solicitor- I have a foot in both camps!) I disagree that the Court of Appeal made a bad decision... I would rather see my tax going to the miners who, lets face it, have suffered enough under successive British governments, than to a solicitor who has benefited once from having his university fees/grants paid by the UK taxpayer in order to qualify to go on and earn even more from the taxpayer in these legal cases. Nobody should earn £1500 from taxpayers money for 7 hours work when the minimum wage is £6 an hour!
June , Liverpool, UK
Sorry but the real villains of the peace are the DTI who set up this system of payments in the first place and the Trade Unions who ensured they creamed money out of their own members in 'introducer' fees.
Jay, London,
I was amused but not surprised by 'gemblan's comments becasue they assume a level playing field.
Whilst the legal profession define who can and who can not argue cases they are basically holdng the public to ransom.
The market only works if it is free. Once you have a trade union (The Law Society) controlling things it is no longer a market place.
Graham Mills, H, united kingdom
The whole legal system is a disgrace and there is no means of the man on then street getting Justice and THAT is because of costs. If you take a case as a litigant in person because you cannot afford a solicitor you will find that they will win 1 interlocutory costs order for thousands of pounds and then use that Costs Order, that one cannot afford to pay, and stop the claim proceeding. We need to bring in a system like they have in France which is much much better.
John, Woking, UK
Having had experience of both good and bad solicitors I can vouch for the fact that there are some bad apples out there who do not bring added value.
Arnold Ward, Weybridge, Surrey, UK
I noticed the majority of comments state that solicitors/barristers charge too much for their services or are accused of padding their bills. While I'm not about to say that there no lawyers who do that, the majority do practice good billing procedure. Unfortunately, you never hear about the solicitors/barristers that actually do good for the general public and lest I remind you the theory of supply and demand, remember that everyone wants a solicitor/barrister until their problems are taken care of and then they become reluctant to pay their bill.
Perhaps, if no solicitors/barristers practiced this facit of law, then maybe the public might see what their worth is. Until then I think this is a bad decision by the Court of Appeal.
gernblan, Bromley/Winnipeg, England/Manitoba
Your headline on this subject is misleading and should be 'Lawyers to repay a tiny fraction of money that they have embezzled from the tax payer'. To presnt this as a fair resolution of this scandal is disgraceful.
My father used to say that the mafia never got a foothold in this country because our legal system was more corrupt than they were. Now I know what he meant!
John, Raunds, UK
Though this is an extreme example of padding bills, many who have dealt with solicitors' billing practices would know that this is a problem right across the board. Archaic hourly rates,closing ranks, and very low level of proof required in costs assessments procedures(in favour of solicitors) have led to the spread of this widespread 'costs cancer' within the solicitor profession. This latest judgment should be used as a springboard to a wider investigation to bill padding and exaggerated hours claimed .There should also be a review of the 'costs rules' in relation to assessement procedures to ensure there is greater scrutiny of charges claimed by solicitors.
Janet , London, UK
So, 1100 pounds for a day's work, and as little as 2,000 pounds for a ruined life. Where's the justice in that? Considerably reduced costs would mean a maximum of 100 pounds per hour, something no miner ever earned.
elaine, Zaragoza, Spain