Law Society chief says reductions means an end to 100% compensation

This article was published on: 03/6/13

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The Law Society chief executive Desmond Hudson has told members that in light of the changes to costs on the Road Traffic Accident Portal (RTA Portal) that personal injury solicitors will be forced to withdraw from offering 100% compensation offers in the future in order to be able to afford to offer their services.

Still angry with the government’s decision to ignore the results of the consultation regarding the significant reduction to the fixed costs for RTA work, Hudson admitted that the personal injury sector will now have to do more to put forward the case of solicitors in order to help the industry survive.

He was speaking at the first of several roadshows that are being held to help firms plan for the future for which he claimed would affect all 20,000 solicitors who are involved with RTA litigation.

High on the agenda was the alternative schemes that solicitors involved within personal injury will now have to work by in order to remain profitable enough to offer the genuine claimant service. Unfortunately due to the extreme nature of the cuts this will see practices forced into deducting from clients, with damaged-based agreements seemingly the way forward.

The Law Society chief told those in attendance at the roadshow: “The work you do is of value and you’re entitled to be paid a reasonable amount for it. It will mean the days in which a claimant will see 100% of the damages paid are over. The profession will have to be paid to make a reasonable return.”

Hudson went on to lament the government and the power that the insurance industry has over them when it comes to making important decisions regarding the industry but admitted that the next step for the Law Society and it’s members is to do more to put forward their case.

He said: “On behalf of the profession I am angry that insurer’s advice to government seems to go unchallenged. Angry that many solicitors who work hard for their clients are going to struggle – some firms will undoubtedly fold. But I am most angry that in all the spurious talk about fraudulent claims, many innocent victims with real, debilitating injuries will lose out.

“They will not get the redress they deserve; the individuals and companies at fault will have fewer incentives to correct their behaviour.

“However anger isn’t enough. We must explain better the role of solicitors, to evidence the value we add, to our clients, to society, to justice. We will redouble our efforts to engage with government and parliamentarians, and with others who influence policy.”

Image source(s)

1. Pexels; Omar Alnahi;