Last week my first overseas blog appeared. It came all the way from Chicago,
Illinois, where I was attending the American Association for Justice annual
convention. This week’s blog again has an American flavour, as I reflect on
lessons learnt during my stay at the Chicago Hilton, where the conference was
held.
I’d like to add to the two general points I made last week (that wherever one
finds oneself in the world, claimant lawyers are engaged in an adversarial
battle with insurers, and that claimant lawyers here and in America seem to be
up against a legislative drive to reduce or cap the costs they can recover). In
a sense, what I am going to say is also a general observation, but nevertheless
I think it’s an important one.
Put simply, I think that rather than knocking the American litigation landscape
we should look at it objectively and ask if it has a thing or two to teach us.
I think it does, for reasons I will explain.
The British tendency is to categorise American lawyers as ambulance chasers (or
worse). Our press regularly skews coverage of American legal proceedings to
paint a picture of a system in which pre-trial jury selection is bizarre, and
where US lawyers habitually exaggerate or even invent claims. But while there
is rarely ever smoke without fire – some claims about the excesses of American
lawyers are undoubtedly true – if you scratch a little deeper there is much to
be said in favour of the American way.
The main reason I say this is because the American system is underpinned by a
belief that the client comes first. An American claimant who secures recompense
for an injury is not condemned as being part of a ‘compensation culture’.
Instead, it is accepted and understood that a claimant’s lawyer will do
everything in his or her power to gain as much as is properly due for a client.
The client’s needs come first, which means that no stone is left unturned in
the preparation of a case. Yes, this dovetails with a financial incentive for
the lawyer involved, but in America there is recognition that lawyers have
businesses to run. That they might make a profit is not viewed as something
wrong and unpalatable.
Contrast the way in which civil litigation has developed in Britain – and the
way it is heading. Recent years have seen successive reforms which, put
together, make it harder and harder for British solicitors to represent clients
to the best of their ability. There is a sense, here, that lawyers who make a
decent living are somehow ‘evil’, that they fuel the ‘compensation culture’ which
is so hated by the government. This also leads to a very worrying
knock-on effect for clients potentially, in creating an environment in which
early settlement, at a fraction of what a client could have obtained in
damages, will be become difficult to resist. There is some statistical
evidence of this which has recently been presented to the Ministry of
Justice by Professor Fenn.
The emphasis, here, is on getting rid of claims quickly, at low cost. In
America, the focus is on getting the right result. Here, the beneficiaries of
the system can be insurers; in the States, the client’s case is the main thing,
and is never or at least rarely sacrificed..
Doubtless there are issues with the American personal injury system. As I say,
the point I am making is a general one. Likewise, the way we do things here is
not all bad. But my trip to America reminded me of the real role of the
personal injury lawyer: to serve injured people. I think we would all do well
to remember this rather than uncritically accept governmental soundings
off about the ‘compensation culture’.
Or, put another way, if you were the victim of a serious accident, through no
fault of your own, would you rather obtain the maximum compensation to which
you were entitled – or settle the case early so that the insurers didn’t have
to make a hefty payout?
John is one of the UK's leading personal injury solicitors, with over 28 years of experience. In addition to his role as Director of Spencers Solicitors, he is an advocate for claimant rights and believes that wholesale reform to the personal injury arena is needed to ensure transparency, access to justice and the protection of injured people. In this blog, John writes regularly about these issues.
Showing posts with label costs. Show all posts
Showing posts with label costs. Show all posts
Thursday, 9 August 2012
Tuesday, 31 July 2012
Postcard from Chicago
This blog is a first. In contrast to my usual musings, which are penned at various places in the UK, this one comes all the way from Chicago, Illinois. And no, before anyone tells me that I must be a workaholic, I'm not here on holiday.
I'm here as an attendee of the American Association of Justice (AAJ) annual convention, which is being held at the Chicago Hilton. The AAJ has been going for over 65 years, and previously known as the Association of Trial Lawyers of America (ATLA). Its purpose is to support plaintiff lawyers of all guises, making for (as its website puts it) "a collective voice of the trial bar on Capitol Hill and in courthouses across the nation".
The AAJ's annual conference is attended by trial lawyers of every hue. There are seminars for trucking litigation lawyers, for those specialising in chiropractic malpractice litigation, birth trauma litigation and various kinds of pharmaceutical litigation. There all manner of other lectures and talks, all of which enable the open exchange of information and cutting edge know-how. I felt it was important to get a sense of how American lawyers deal with the kinds of issue that Spencers Solicitors handle, and so booked myself in for the four day conference.
The experience has been illuminating and when time allows I may write in more detail about it. For now, though, I will observe that two truisms seem to apply to the legal world on both sides of the atlantic.
Firstly, claimant lawyers are engaged in an adversarial battle with insurers. The latter subject to a minority exceptions seem to seek to minimise their liability at every stage, rather than remembering that without the people who take out their policies they wouldn't be in business. If only, as I have often argued in this blog, there could be a more constructive dialogue between insurers and claimant lawyers - if only a more holistic approach could be taken to the question of a victim's right to compensation - much time, cost and anxiety would be saved.
Secondly, claimant lawyers here and in America seem to be up against a legislative drive to reduce or cap the costs they can recover. While there may be merit in this in some ways, it cannot be right if the effect is to jeopardise a victim's ability to secure compensation to which he or she is rightfully entitled.
A final, more tangential observation is that it's true: American lawyers really are more theatrical than their British counterparts. They certainly don't lack for confidence and character. Last night, for example, my daughter Esme (who is accompanying me on the trip) booked us into Buddy Guy's Legends club. This is one of the most famous blues clubs in the world, and we had a fantastic evening watching brilliant musicians like Eric 'Guitar' Davis and Corey Dennison. As the evening wended on I found myself talking to a chap at our table. He was confident and charismatic - and turned out to be an appeal judge from North Carolina.
Somehow, one doesn't seem to meet Court of Appeal judges in Ronnie Scott's club in the heart of the West End. That's not to say they don't like jazz - in fact, I suspect quite a few of them do - but it is to say that they'd be hesitant about striking up a conversation with a complete stranger. Not so in America, and tonight Esme is taking me to another blues club. I'll be surprised if any lawyers who happen to be there are backward about coming forward.
Wednesday, 27 June 2012
SCI People Deserve Better
Yesterday I
found myself in the House of Lords. Specifically, I was in the Grimond Room at
Portcullis House for the AGM of the All Party Parliamentary Group on Spinal
Cord Injury. I attended as a guest, having been invited by the Motor Accident Solicitors’ Society.
Professor Clements debunked these ideas, citing the Coughlan criteria to show that they are not legally correct. That he did so made Mr Burns’ tale all the more moving. This is a man whose circumstances are heart-rending and far from unique. He was forced, through lack of any alternative, to live in institutional care – which understandably he regarded as akin to prison. He missed family life, the benefits of which so many of us take for granted. Mr Burns missed anniversary celebrations and seeing his sons grow up, and all at a time when he was in most need of family support.
Throughout, he had to try to come to terms with a tragic water sports accident which had left him paralysed and without sensation from the neck down. He brought himself, his wife and his audience to the brink of tears as he so spoke so courageously.
I’m glad I was able to attend yesterday’s AGM. In some ways, it was depressing – the neglect of SCI people and the systemic failure to provide properly for their needs is terrible – and yet I emerged feeling inspired by Mr Burns’ courage. I hope that other people will join me in pressing for a higher standard of care in this area. As a society, we can and must do better.
I found the
experience very moving – and not just because of the impressive surrounds of
the House of Lords. Certainly, being in such a historical place is stirring in
its own right, but what I found so poignant was the subject under discussion,
and the testimony of Spinal Cord Injured (SCI) people.
The AGM’s
purpose was to discuss the issues SCI people face when being assessed for NHS continued
healthcare. It was chaired by Ian Lucas, the Labour MP for Wrexham, and
among those speaking were Professor Luke Clements of Cardiff Law School, and John
Burns, who is a tetraplegic.
Mr Lucas was
a fine chair, and Professor Clements an erudite analyst on the legal issues
surrounding the provision of continued healthcare to SCI people. But what moved
me so much was the story of Mr Burns, whose battle to secure continuing
healthcare in his own home was shocking and dismaying in equal measure.
It strikes
me as appalling that SCI people have to overcome such barriers when applying
for continuing healthcare from their local Primary Care Trusts. Why, in a
civilised society such as Britain, is it so difficult for people whose quality
of life is so dreadfully curtailed to obtain adequate care?
The leading
authority in the area is the Coughlan case, a Court of Appeal decision from
1999. Pamela Coughlan was a disabled woman who was denied fully funded NHS
care, having been told that she only needed general rather than specialist
nursing. She went to law to argue that the NHS had wrongly passed the buck to
social services, and she won. In agreeing with her, the Court of Appeal laid
down a test to determine whether the NHS is responsible for funding, as
follows:
- If the person’s reason for placement in a home was primarily a health need, then the NHS is responsible for funding the whole package;
- Local social services are only responsible for care which is “merely incidental or ancillary to the provision of the accommodation”.
Professor Clements debunked these ideas, citing the Coughlan criteria to show that they are not legally correct. That he did so made Mr Burns’ tale all the more moving. This is a man whose circumstances are heart-rending and far from unique. He was forced, through lack of any alternative, to live in institutional care – which understandably he regarded as akin to prison. He missed family life, the benefits of which so many of us take for granted. Mr Burns missed anniversary celebrations and seeing his sons grow up, and all at a time when he was in most need of family support.
Throughout, he had to try to come to terms with a tragic water sports accident which had left him paralysed and without sensation from the neck down. He brought himself, his wife and his audience to the brink of tears as he so spoke so courageously.
I’m glad I was able to attend yesterday’s AGM. In some ways, it was depressing – the neglect of SCI people and the systemic failure to provide properly for their needs is terrible – and yet I emerged feeling inspired by Mr Burns’ courage. I hope that other people will join me in pressing for a higher standard of care in this area. As a society, we can and must do better.
Thursday, 5 April 2012
Changes to the RTA Portal need clarity of thought
This time next week I will be attending an interview. Well, not an interview in
the traditional sense of the word, but an interview with Andrea Nicholls of College of Law Media. As part of a video series for Continuing Professional Development
(CPD) for lawyers, Andrea will be asking me a number of questions about the RTA
Portal, the electronic Portal put in place nearly two years ago to support the
Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic
Accidents.
I’m
looking forward to this particular interview – and my good mood is not solely
down to the fact that Fernando Torres has remembered how to score goals. I
can’t help but be pleased by this development, not least as last weekend’s 4-2
win at Aston Villa has helped put Chelsea back in with a decent shout for
a Champion’s League place, but I'd applaud the approach to the interview for
another reason, and it can be summed up in one word: clarity.
Andrea
Nicholls is a writer-presenter as well as an employment lawyer, and she has
kindly sent through a list of pre-interview questions which are
well expressed. Combined with further clarification in discussion
hopefully Andrea will have ensured the session meets the objective, of
practical and relevant advice to practitioners.
Andrea
tells me I can’t wear blue – apparently, I will be rendered akin to the
Invisible Man if I do – but aside from this modest disappointment (see above:
it’s a Chelsea thing) I couldn’t have been treated more courteously before a
televised interview. I’m optimistic that we will, as Andrea hopes, end up
having a relaxed and yet informed conversation rather than a stiff and stilted
interview. But if Andrea’s questions about the Portal are a refreshing model of
clarity, regrettably the same cannot be said of the government’s proposals for
change in this area.
Here,
clarity of holistic thought is sadly as absent as Torres’ goal-scoring for
most of this season. This is especially so when it comes to the ABI
inspired proposal to fix at £300/£400 the fee for low-value road traffic
claims handled through Portal. This would amount to a dramatic reduction from
the present fixed costs of £1,200. In reality, the protocol requires over
eight hours of work. The danger is obvious namely that such a
slashing of costs will encourage or even force cutting of corners; in
any event, it can only prompt a lack of professionalism, perhaps even
encouraging spurious claims and even fraud.
The
Ministry of Justice has begun meetings with stakeholders over its plans to
make changes to the Portal, a key limb of which is extending the Portal to a
£25,000 limit (a £15,000 increase from the current cap). This, too, is fraught
with difficulty, both in the apparent rush with which the MoJ want to see the
changes implemented – within just a year – and the extension of the Portal to
covering employers’ and public liability accident claims.
As with
too many of the initiatives emanating from the government in the personal
injury sector, there is a sense both of undue haste and that a bandwagon is
being pushed headlong to an uncertain fate. What is required is a holistic
approach and a sensible consideration of the practical workings of the Portal,
so that such changes as are made are in the best interests of the injured
person as well as the public at large.
If only the
government could adopt some of Andrea Nicholls’ clarity of thought. Meantime, I
will continue to look forward to next Wednesday’s interview – and albeit that I
can’t wear blue, I will also hope that Fernando Torres sustains his return to
form, particularly since I sit finalising this blog in the Aziz deli,
round the corner from Stamford Bridge, and before doing battle with Benfica!
Wednesday, 22 February 2012
Driving down legal costs also means driving down standards of service
This week I’m going to talk about costs. Or rather, the
preoccupation with reducing legal costs that seems to be so high on the
government’s agenda – and which certain newspapers trot out without thought.
Ever since the Jackson Review of costs in civil litigation,
lawyers’ bills have been under the microscope. Nothing wrong with that: it’s
important to maintain checks and balances, and there is no doubt that some
lawyers milk the system to the exclusive benefit of themselves, with their
clients’ needs a distant second. But lately, the laudable aims of the Lord
Justice Jackson seem to have been hijacked.
The present government’s crusade to attack what it pillories as
the ‘compensation culture’ – a crusade which its spin doctors say is in keeping
with the spirit of the Jackson Review – amounts to a dumbing down of legal
services. The preoccupation with reducing cost is evident at every turn, as if
by driving down costs all the ills of the personal injury market will be cured.
This, though, is not the case. The situation, as with so much of life, is fluid
and complex rather than black and white.
By squeezing the market ever more and pushing costs down to the lowest
possible denominator, the government simply increases the prospect of
unprofessional representation. It cannot
be in the consumer’s interest to suffer an injury – one for which compensation
is properly payable – and yet discover that a barely qualified, inexperienced
practitioner is the only person available to take the claim forward.
Moreover, this, the commodification of legal services, flies in
the face of what is second nature to the true professional. It would serve the
government – and us, the taxpayers – well if it were to bear in mind what it
takes to act professionally, as stated in 1992 by Lord Benson. There were nine
key principles, and I’ve set them out in full below.
1. The profession
[in this case, the Law Society] must be controlled by a governing body, which
in professional matters directs the behaviour of its members.
2. The Governing Body
must set adequate standards of education as a condition of entry and thereafter
ensure that students obtain an acceptable standard of professional competence.
Training and education do not stop at qualification. They must continue
throughout the member's professional life.
3. The Governing
Body must set the ethical rules and professional standards that are to be
observed by the members. They should be higher than those established by the
general law.
4. The rules and
standards enforced by the Governing Body should be designed for the benefit of
the public and not for the private advantage of the members.
5. The Governing
Body must take disciplinary action, if necessary expulsion from membership,
should the rules and standards it lays down not be observed, or should a member
be guilty of bad professional work.
6. Work is often
reserved to a profession by statute – not because it was for the advantage of
the member, but because of the protection of the public. Persons with the
requisite training, standards and disciplines should carry it out.
7. The Governing
Body must satisfy itself that there is fair and open competition in the
practice of the profession.
8. The members of
the profession, whether in practice or in employment, must be independent in thought
and outlook. They must not allow themselves to be put under the control or
dominance of any persons or organisation that could impair that independence.
9. In its specific
field of learning, a profession must give leadership to the public it serves.
What underpins all of Lord Benson’s astute and sensible
points is the notion that to be professional is to act in the public interest.
The key factor, for Lord Benson, was the degree to which individuals in a
profession and their governing body acted ethically.
It is this, allied with a holistic view of the PI market
rather than a piecemeal approach, that will help lawyers provide the best value
to clients. The government should take note.
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