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Miners Claims

Solicitors come under scrutiny for improper fees scandal

Solicitors who dealt with miners’ compensation claims are facing fresh challenges after an MP accused some legal firms of not repaying more than £100million in improperly charged fees. Several lawyers had been criticised and some have been struck off following disclosure that they wrongly took a share of client’s compensation under a government scheme. Solicitors who took on claims were paid by the Government for dealing with cases, but some also charged extra fees to clients, taking the cash directly out of their payouts. The Government scheme - The Coal Health Compensation Scheme - was designed to provide cash compensation to miners who had suffered chest diseases and conditions such as Vibration White Finger while working underground.

The extent of the scandal was made public in 2005 yet four years on, there are still repercussions of the actions of a handful of unscrupulous solicitors. The local MP has taken up the cause, campaigning for hundreds of miners who have since claimed the fees back. But there is concern that thousands of other miners may not be aware that they can claim the legal costs of their claims back, or may be worried that claiming the fees would involve a lengthy process and sheaths of paperwork.

However, as the case has been fully computerised, those supporting the miners in their campaign for compensation say that all miners and their families have to do is come forward and notify the government to be able to claim the money back. More than 750,000 former miners have made claims under the Coal Health Compensation Scheme and it is thought that around 20% of them were improperly charged by lawyers. The average amount of incorrectly charged fees is £910 and it is believed that this could affect up to 120,000 claimants.

The actions of a handful of solicitors has done nothing to enhance the reputation of the industry in the eyes of either the public or the government, and could potentially have a ripple-effect as the case gains more publicity. Although all of those involved have been held to account (and in many cases, lost their jobs as a result), the industry has still taken a knock in the amount of confidence the public has. This is not the first time that firms have been accused of charging excessive legal fees in compensation claims. But because of the emotive issues surrounding the miners’ compensation claims and the impact it has had on so many ordinary people, legal experts are concerned that this body blow to the industry’s reputation could have far reaching consequences.

Emphasis has been placed on the Government and in particular Lord Mandelson, the minister responsible for the original 1998 agreement, to contact every claimant involved and notify them of their rights. Whether the Government will want to become embroiled in yet another political hot potato so close to a general election remains to be seen. In the meantime, industry watchers are calling for greater accountability and openness in the way claims specialists account their costs and a clampdown on excessive charges.

The Legal Complaints Service, which handles complaints about solicitors, has only received 5,410 complaints relating to improperly charged fees from miners claims. But with potentially 120,00 being affected, it may see those numbers jump dramatically once the full extent of the scandal becomes public knowledge.

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