U.K. Personal Injury Attorneys to Face Closer Examination

April 22, 2010 (by Horatio Algren) Personal injury lawyers making more than £1 million per year on personal injury claims according to a new report should face closer examination.

According to Stormont’s Public Accounts some Northern Ireland personal injury attorneys should be scrutinized closer. It is believed that there is the potential for conflict of interest in a committee of judges and attorneys setting fees, which some stand to benefit financially.

During the year 2007-2008 there were payments made that involved tipping style accidents paid to plaintiffs’ attorneys equaling £1 million. The costs have increased almost four times with inflation over the past decade in claims against the Road Services.

Stormont’s Public Accounts chairman Paul Maskey stated the Committee believes that the legal profession is making these financial decisions to their benefit without considering the impact on the public and private sector which will bear the costs.

The tipping injuries on the roads and footpaths cost the Department for Regional Development £4 million between 2007 and 2008. According to Maskey approximately half of this money paid to claimants was paid for legal attorney’s legal fees and in house government advisers. The administrative costs are an additional £1 million a year.

Maskey believes this is a dangerous situation that does not meet the accepted principals of governance and accountability.

While the number of personal injury claims has decreased by half during the last ten years, the average cost of a successful injury claim has increased by approximately four times the rate of inflation. The reason for this is believed it is because the increases are outside of the Department’s control.

Compensation paid in Northern Ireland that is paid is almost twice the amount that is paid in England or Wales. One reason is due to the fact that juries made the decisions, while this was discontinued in England and Wales. England and Wales decisions are done by judicial guidelines, and with the change in Northern Ireland the differential was maintained. The difference between a severe ankle injury in Northern Ireland and England, would be the Irish claimant award starting at £18,000, while in England or Wales the same injury award would start at £7,625.

The Department pays for the compensation that is awarded in personal injury claims, for the claimants legal costs and for their own legal advice.