This month
provided more fuel for the tabloid fire against the so called compensation
culture. The newspaper headlines this morning again concerned large negligence
pay outs. This time the culprit was the NHS and not the prison service. We are
told that the NHS paid out more money in negligence claims last year, than its
entire budget deficit.
On a
related point, a District Judge commented to me recently that claims are being
brought that just would not have been contemplated even ten years ago. He had
in mind claims for minor soft tissue injuries and bruising lasting a couple of
weeks. These are commonly now brought, especially on behalf on child Claimants,
and typically attract settlements of £1,000 or less. But is it necessarily
wrong to bring a low value claim, where the law permits it?
By fixating
on large pay outs, the press coverage often masks the real problems with our
legal culture. Many interesting and concerning issues revolve around
conditional fee agreements and their ally the new predictive fee regime.
Perhaps after 5 – 10 years of conditional fees it is time for personal injury
lawyers to engage in a serious dialogue about how they have affected our
practices.
One concern
with conditional fee agreements is that they may encourage speculative claims.
These attempt to push the boundaries of the law, so exposing the law and
lawyers to media criticism. I also wonder if there is a concern about the
integrity of the profession. What effect do conditional fees have on the early
settlement of cases? Finally, we might question whether conditional fees have
helped access to justice. Do the most risky cases attract the best legal
representation? Whatever the right answer to these questions, there are serious
questions for our profession hiding behind the newspaper outrage.
Aidan Ellis