Tag Archives: Personal Injury

SRA Survey Shows Positive Signs for Personal Injury Sector

A survey by the Solicitors Regulation Authority has revealed that the UK’s personal injury sector is doing well despite the impact of the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO). The survey gathered information and opinions from a wide range of relevant sources, including over 250 legal firms operating in the sector, and identified a number of positives.

As well as hundreds of legal firms, the survey questioned the judiciary, regulators, representative bodies, insurance companies, and trade associations. The findings of this survey were recently published, and while there were some areas of potential improvement identified the SRA’s research has suggested that, on the whole, the industry is doing well.

The personal injury sector is in many ways a broad sector. One of the most prevalent examples is claiming compensation for accidents at work, or indeed any injury or illness, that was the result of an employer taking insufficient measures to provide a safe working environment. However, it also includes just about any case where one person has been physically injured and it was the fault of a third party, such as accidents caused by careless driving, or cases where a business has not maintained a safe environment for customers.

In such cases, the injured party is entitled to a financial settlement from the negligent party, both to reimburse any financial costs associated with the injury and to act as compensation. A large part of the personal injury sector is made up of firms that specialise in these claims, or even specific kinds of injury claim such as workplace accidents or traffic accidents.

It was expected to be one of the sectors that was particularly likely to be hit by the 2012 act, specifically by the removal of certain kinds of fees, but the survey suggests that personal injury firms have adapted well to the changing landscape. Overall, the SRA concluded from its research that the sector is “generally working well” in a post-LASPO legal landscape.

The report also suggested that the number of frivolous and outright fraudulent claims is decreasing, though this still remains a concern. This decrease is welcome news for firms operating in the sector as, unlike most other areas of legal practice, fees are often only charged on the success of a claim and as a percentage of the settlement awarded.

The report also suggested that the relationship between legal firms and other relevant companies such as insurers is growing more positive. Among the concerns raised was the possibility that some firms may be diversifying into new areas of personal injury practice without the desirable amount of expertise.

Human Rights Law & Personal Injury Claims

Recent years have seen several far reaching reforms enacted to the UK justice system.

Such reforms have encompassed legal aid funding, legal reform, and an emphasis on arbitration and mediation in courts and tribunals, which will further impact upon the provision of justice. 2014 also saw the implementing of new contracts for police station solicitors; the tender process, and the actual contracts, were widely condemned and criticised by many in the legal sector.

The overall impact of such reforms has been to essentially deny justice to many thousands of average, households in the UK, a fact which the legal sector has raised in no uncertain terms. Most of the legal reforms are ultimately (but not entirely) a simple cost cutting measure, amidst reduced public funding and a slow, painful economic recovery. However, to an extent, the legal reforms, and the ensuing limited access to justice, are, ironically, potentially illegal.

Human Rights law, both domestic and EU, requires and allows for a full and impartial trial, with adequate and proper legal representation throughout any legal proceedings. Articles 5 and 6 of the European Convention on Human Rights (ECHR) addresses this, as does the Human Rights Act (1998). The recent legal reforms mentioned, however, seriously challenge that fundamental legal and human right.

A good example here is employment law. This is an increasingly touchy and emotive area of law as job security and zero hours contracts are a major current legal issue. Aside from that, employers have a responsibility for the health and safety of their staff, visitors and contractors in the workplace. If health and safety rules and regulations are breached, there can be accidents and injuries at work. Such accidents can range from a few cuts and blisters, to sprained ankles, to broken limbs, to long term chronic medical conditions developing. The result of an injury at work can be to cost the business greatly in productivity and lost working hours, as well as on-going support for injured employees; HSE figures for 2012/13 show that the estimated cost of workplace injuries and health issues arising was just over £14 billion. Of course, economics aside, that is nothing compared to the human cost for those actually injured.

The law enshrines the right of the injured party to make such an injury at work claim, under tort and civil law. Amidst such legal reforms, it would be very hard for the average employee to take their legal claim to court. Although the (2014) average wage nationally in the UK was £26,500, inflation, debts and the rising cost of living severely reduces the amount of money an average employee would have fund a legal case. Further, the great majority of unskilled workers (often in industries prone to severe workplace injuries) actually earn more in the £10,000 – £13,000 bracket (2014 figures), or less. Amidst the legal reforms, bringing a simple workplace injury claim to court is therefore far beyond the means of the average employee.

In the personal injury sector, however, many cases continue to be funded by Conditional Fee Agreements (CFA). With a CFA, litigants only pay their lawyers on the understanding that their case will be won, and that compensation will be awarded. Litigants do not pay if their case is unsuccessful. If it were not for the system of CFA funding, many personal injury litigants, be they injured at the workplace or indeed elsewhere, would simply not be able to obtain the justice that they are entitled to under law.

Employment law, and personal injury law aside, there are many areas of law (such as family) where it is simply too costly in time, effort, procedure and money, for people to obtain justice- contrary to human rights law.

The legal sector has tried to protest this, and to raise this very serious concern. The government is more concerned with the Budget and economic recovery, as opposed to such legal niceties. The fact remains that the reforms are potentially illegal, as they deny justice to many, in breach of human rights law.

One government response has been to put in the 2015 Queen’s Speech plans to reform and replace current human rights legislation with a new Bill of Rights or similar. In that fashion, with new human rights principles, the government can no longer be said to be acting in breach of current human rights provisions that enshrine the right of all to seek a legal remedy in court.