Profession
Despite the controversy surrounding the payment of large referral fees to solicitors acting on behalf of miners suffering from mesothelioma, such payments may be in the public interest, provided regulation is up to scratch.
Darren Werth, chairman of the Claims Standards Council says that the payment of fees is acceptable, as long as they are reasonable, proportionate and transparent. “Fees are a common and usual part of everyday business and simply put, they should be regarded as marketing expenditure.”
Werth says that it should not be of concern how solicitors market themselves, whether it be by purchasing advertising space or buying in vetted claims, as long as solicitors adhere to their professional rules.
He continues, “Since the changes in the Solicitor’s Referral Code at the end of 2004, the industry has finally enjoyed a welcome period of transparency and stability and that cannot be ignored.
“A ban on referral fees would undoubtedly send the industry back to a time of convoluted business practices full of technical challenges by insurers, which clearly would not be in the public’s best interests. The rules aren’t wrong, it’s the policing that needs to be better,” he adds.
Werth’s comments come in the same week that two solicitors, Jim Beresford and Douglas Smith, are facing allegations of professional misconduct arising from miner’s compensation claims.
It is claimed that their firm, Beresfords, earned £115m from its handling of the scheme in which the average payout to victims was just £2,000.
If found guilty, the solicitors could be struck off .
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