Northern Ireland lawyers who make more than £1 million a year from personal injury claims should face greater scrutiny, a new report claims.
There is a potential conflict of interest in a committee of judges and solicitors setting fees while some in the legal profession stand to benefit financially, Stormont`s Public Accounts Committee (PAC) said.
Payments to claimants' solicitors involved in tripping-style accidents were £1 million in 2007-08. The average cost of a claim against Roads Service has increased by nearly four times the rate of inflation over the past decade.
PAC chairman Paul Maskey said: "The Committee is greatly concerned that the legal profession, whose members stand to benefit financially, makes this decision in isolation from the public and private sector bodies which must bear these costs.
"This is an unhealthy situation which does not seem to meet any of the generally accepted principles of governance and accountability."
Tripping injuries on roads and footpaths cost the Department for Regional Development (DRD) £4 million in 2007-08, nearly half of which was for legal costs paid to claimant's solicitors and in-house government advisers. Administrative costs are an additional £1 million a year.
The number of new personal injury claims has reduced by half over the last ten years, but the average cost of a successful claim has increased by more than four times the rate of inflation. The reasons for this increase are largely outside the Department`s control.
Levels of compensation paid in Northern Ireland are roughly twice that paid in England and Wales. This has been attributed to the fact that assessment here was historically carried out by juries. When this practice was discontinued and judicial guidelines set as in England and Wales, the differential was maintained. For example, compensation for a moderately severe ankle injury in Northern Ireland would start at £18,000 as opposed to £7,625 in England and Wales.
When compensation is awarded for personal injury the Department is also liable for the claimant's legal costs. The Department also pays for its own legal advice.
Read more: http://www.belfasttelegraph.co.uk/breaking-news/uk-ireland/call-over-personal-injury-lawyers-14775613.html#ixzz0lpYXX8vO
Thursday, April 22, 2010
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