Andrew Norfolk
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to The Sunday Times
A solicitor whose firm specialises in compensation claims for sick miners made a personal profit of £16.8 million in one year.
Jim Beresford is the senior partner in Beresfords, a firm in Doncaster which registered more than 90,000 claims under the Government-run scheme. He is named today as Britain’s highest-earning solicitor.
Tens of thousands of former miners whose health was damaged by their years of work underground have received awards of less than £1,000.
More than 15,000 claimants died before they received any money, yet in 2005, when the scheme was running at its peak, 56-year-old Mr Beresford grew richer at a rate of £45,892 every day.
The bulk of his firm’s profits were paid by the Department of Trade and Industry (DTI) for its work on claims by miners suffering from chronic respiratory disease or a disabling hand condition called vibration white finger (VWF).
Thousands of the claims registered by Beresfords were handed to the firm by the Not-tinghamshire-based Union of Democratic Mineworkers.
Details of the union’s financial relationship with three law firms, including Beresfords, handling coal claims were revealed by The Times in 2005 and are the subject of a Serious Fraud Office investigation.
In that year, Beresfords, which has only three partners, earned a pretax profit of £20.4 million.
The bulk went to Mr Beresford, while the remaining £3.6 million was shared between his daughter, 28-year-old Esta Beresford, and her fellow partner, Doug Smith, 50.
The Lawyer magazine, published today, calculates that Mr Beresford’s share of the profits makes him the highest-earning solicitor in Britain, topping the estimated £13 million earned in 2005-06 by Andrew Nulty.
Mr Nulty, 40, is the senior partner at Avalon, based in Warrington, Cheshire, another law firm that has earned huge profits from coal health claims.
Mr Beresford, the vice-chairman of Doncaster Rovers FC, has splashed out £1.8 million on a private jet and extensive improvements to his home at Linton, near Wetherby, North Yorkshire, while his daughter spent £470,000 on a house at Ingmanthorpe Hall, near Wetherby.
Mr Smith invested £840,000 in 2003 to set up home at Noblethorpe Hall, near Barns-ley, which has ample parking space for the two cars he acquired for £200,000 in 2005: an Aston Martin DB9 and a Bentley Arnage.
The coal-fired surge in the firm’s fortunes is also reflected in its glittering head office. Until 2003, Beresfords operated from a cramped, redbrick building on one of the main arterial routes into Doncaster.
Following a £4.8 milion investment, its home is now a glass-fronted lakeside development covering 38,000sq ft at the town’s prestigious Quay Point business park.
A spokesman for Beresfords said that the firm was “delighted to have settled more chronic obstructive pulmonary disease claims for clients than any other firm in the country and to have been able to obtain in excess of £180 million of compensation”. In total, Beresfords registered 80,800 respiratory disease and 11,600 VWF claims. It has been paid £98 million by the DTI in legal costs.
Scores of law firms across Britain scrambled to sign up clients in the late 1990s when British Coal lost two separate High Court group actions brought by former miners.
By the end of last year, compensation awards had been paid to 427,000 miners — or to the families of deceased miners — with respiratory disease and 142,000 with VWF. More than half (225,000) of those who were given money for chronic chest conditions were paid less than £2,000 and 13,000 received less than £200.
By January, more than £800 million of public money had been paid in legal costs to the 30 highest-earning solicitors’ firms involved in registering and settling claims.
The DTI estimates that when the final payout has been made, solicitors representing claimants will have earned a total of £1.3 billion from the scheme.
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This is peanuts when compared to the "theft of miners pensions" that has been carried out by Gov`t; since a flawed agreement was made in 1994. To date, they have profited by over £5 Billion pounds that they have stolen from miners funds.This is the same agreement that they condemned under the Tory Gov`t; as being a "rip off", and yet, despite several broken promises, they have always refused to renegotiate it.!
To date, 24,444 retired miners exist on a pension of less than £10 a week, while Gov`t; have taken this disgusting amount of money from them.
Blair and Brown are the real vultures here.
Mick Westwood, Burntwood, Staffordshire
making a profit from anothers problems is nothing new. I can recall after the 2nd world war a London based solicitor 'un-named' made a great deal of money fom refugees compansation from Germany . When you employ a solicitor, he is supposed to work for you and do his best for you, but does he/she. I believe that the first thing that they see is the £ sign. If then you employ them, and things go well, that is your bonus.
victor, westclff on sea, uk
The DTI kept this compensation scheme under wraps. These lawyers advertised the availability of the compensation scheme (at their own expense). Result - thousands of miners and their families, who would otherwise have received nothing, filed claims then received £ hundreds of millions. Taxpayers should blame the DTI for not making this a simple, well publicised claim process. Instead, the DTI gambled with the miners' wellbeing, and a free market economy has penalised the DTI and rewarded the miners and their lawyers.
Dan, Leeds,
One Canadian Law Firm is profiting by the $$$$$'s in the settlement of cases involving the abuses perpetrated on native children forced into residential schools.
I agree with Wendy, that assuming the system allows lawyers to make huge, disproportionate fees, they should have the decency (is lawyers and decency an oxymoron?) to plough significant amounts back into the community.
Dawn Montgomery, Hamilton, Canada
And they say doctors are overpaid! How much did each miner get in the end?
John Wood, London,
I am a lawyer from an overseas jurisdiction and I'm appalled that this has been allowed to happen. My views are:
I don't blame the lawyers. If they are to survive globally as a profession, I would hope that they are entrepreneurial enough to go where the money is. Law practice is tough, overheads high, you don't know if there'll be enough work to break even next month, you have to grab what you can while you can. BUT having made a huge profit, they should have the moral decency to plough some of this back, eg. by doing pro bono work or taking on higher risk no-win-no-fee work, etc. Not buying private jets.
The blame lies on the DTI or whoever's responsible for coming up with the remuneration package for the lawyers. In my country, companies with bulk claims (eg. banks with credit card claims) negotiate bulk rates with law firms. The competition is cut throat and the lawyer only gets a measly fee per file (but he still takes it as it pays the rent). Why can't DTI do the same?
Wendy, Singapore,
As an american lawyer I can must say agree in part with Tony Jones. The lawyers are operating under they system as it exists. Often with out the lawyers and their fees the plaintiffs woulnd not even get the small amounts mentioned. I also wonder why the article does not mention the larger awards that the form acheived. In America, for better or worse, the contigent fee, forces the lawyer to riskhis mney on behalfof his client and the lawyer then shares in theaward. The result is better for both the injured and the lawyer as both have the incentive to acheive the maximum award. While the fees do seem high I suspect that htis is only half of the story.
David Sergi, San Marcos, Tx
My Dad worked down the pit for 43 years and received £3.000 compensation for serious dust on the lungs, he's lost %50 of his lung capacity. At least he is still alive! The quality of his latter years diminish daily.
This is Blairite Britain, looking after the working man. Hardly surprising that disaffection is strife.
elaine, London, UK
Mediation was intended to be used as a process to assist in the cost effective and early resolution of the these claims, without the need for protracted and expensive litigation. ADR Group, one of the UK's leading mediation provider organisations, was signed up by the DTI to deliver these services in the 1990's. The process of mediation could have assisted those who would have benefited most from early resolution, but sadly that has not proved to be the case.
Michael Lind, Bristol, Bristol
What exactly have these solicitors and others acting for miners done wrong? The Government (the DTI) set up two schemes, one for VWF and one for Chronic Respiratory Disease, both of which prescribed by reference to a medical report the amount of compensation each miner would receive (the solicitors do not decide this) and also the amount the solicitors are paid per case (again, the solicitors do not decide this). All these solicitors have done is to operate within the terms of the DTI schemes. The DTI also set up a separate claims handling agreement with the UDM to allow the UDM to handle these claims themselves (and, of course, be paid by the DTI) on behalf of miners. The implication that these firms have done something wrong simply by earning such sums is hysterical reporting of the worst kind and is of no credit whatsoever to the standing of The Times. Any criticism should be directed at the DTI for its incompetence in getting its sums so badly wrong when setting the schemes up.
Andrew, Huddersfield, UK
It is interesting that we all immediately feel animosity to Tony Blair (and Cherie Booth) over this. Do New Labour's spies and enforcers read our comments? I really hope so. However, let us not forget the well-mannered and high quality of service provided by many of our solicitors for very reasonable money. Equally, my thoughts are with the miners and their families who read this article. How long before we become civilly disobedient on a large scale?
Anwar Shah, Birmingham, W Midlands
The UK is becomming a country that is great to live in only if you are very very rich. Labour's leaders have been seduced by luxury, and they stealth tax the hard working and the poor while conspiring with the money. Can't see John Prescott giving up croquet, or Blair aiming for less than presidential splendour in his daily routine.
Anwar Shah, Birmingham, W Midlands
Although the sums involved in this article are huge by anyone's reckoning, the lawyers involve did not take any money to which they were not entitled. If the DTI agrees to pay a set fee per case, then it stands to reason that the firm who handles the most cases (in this instance Beresfords) will bill the highest costs. The article is written in a deliberately provocative way, but is careful not to mention the actual truth - that none of the money paid to the lawyers was given at the expense of those injured. It is not the fault of the lawyers taht the courts award compensation at such low levels.
Rob, Sheffield, England
As a reporter in South Wales I wrote extensively about miners respiratory illnesses and vibration white finger, and my god, those poor people i spoke to had earned their compensation. The idea that the money has gone to benefit corporate lawyers and buy private jets for these parastic people depresses me in ways that it's difficult to describe. There will be a reckoning one day in Britain, and the rich would do well to observe history's verdicts when it comes to similar scenarios.
Nick, Cardiff, UK
a disgusting indictment of the stupidity, mismanagment, and ineptitude of the DTI. As for the lawyers feeding from the their money troughs well even a pig cannot actually demand a bigger trough. The compensation idea itself was a good concept but to see the derisory amounts paid out and the true winners from this shows the application and inception was appauling. How can such crass greedy and selfish people get into these positions and nothing ever be said about it until it is too late.
Kevin, cambridge,
There is a legal definition of fraud. It may well be that these solicitors have broken no law. The law may have been inadequate in this case, but as solicitors and barristers constantly remind us to justify their totally amoral activities, that is not their concern. They merely have to operate within it.
So greedy, disgusting, amoral, immoral, despicable, etc, etc, they may have been, but until a conviction against one or more of them is achieved, they can not, strictly speaking, be described as fraudsters.
And if a case is brought, who of their cronies will act for the prosecution?
Tony Jones, Grantham, UK
A scandal of Labour like proportions. One can only marvel at the excessive abuse of taxpayers money going on here and of course recognise the left wing thread that runs through it all
Bryan, Cowes,
It's so sad that at a time when legal aid work is under threat in this country that firms like this disgrace the whole profession. There is no justification for these solicitors earning this type of money, and it simply reinforces the very wrong public view that all solicitors are unscrupulous and money grabbing. In fact, many solicitors who work for the most needy in society do so for very little money - it would surprise people to know that many solicitors are paid less than teachers, yet that side of the story is never told - primarily because of people like this.
Helen, Liverpool,
Yet more Labour corruption.
Was Tony on a kick back? If so I hope he declared it to the IR so that Gordon Brown's pension fund benefited
Stephen Green, Correns, France
What an absolute disgrace! These unsavoury characters are simply thieves and fraudsters. They should be put out of business immediately and their assets sequestrated to be divided amongst those mineworkers still alive to benefit from what is essentially compnsation due to them. They have fraudulently benefitted from monies due to others, surely a criminal offence ? If so, strike them off !!
Chris, Cambridge, England
And I suppose no heads will roll! Why are the brain-dead who are in charge of spending vastly inflated taxes not held accountable, and sacked, or made to pay compensation themselves? That includes senior civil servants, ministers and anyone "responsible" (I put it in "" as responsibility is a joke with the Blair government). As ever, the poor and sick get the dregs. I only hope the solicitor in question gets justice in the next world, because there is very little in this.
elaine, Spain,
Yet another indication that this government is unfit to manage a budget. Stop-start spending on the NHS; mismanaged contracts for GPs; the looming financial disaster of the Olympics; the negotiation away of the European budget rebate; the doubling of the council tax to pay for central government-mandated services; the scandal of the single farm payments mismanaged by Ms Beckett; Dawn Primorola's incompetence [was it CSA? so many to choose from I've forgotten]. The only real financial and economic success has been on growth (ingherited from Major's bunch) and inflation and THAT is because the Bank of England was made independent. Brown is all smoke and mirrors. Blair is all spin. That's why this sort of thing can happen and yet barely surprise us.
Andrew Mashkov, London, UK
While Blair (a lawyer) harasses the poor on benefits, the rich and greedy get richer.
Peter Day, Doncaster, UK
Nice to see the DTI looking after the tax payers money so well.
And nobody in the DTI thought to question these fixed fees of 2000 pound per case- when all the law firm does is rubber stamp an application?
peter, caracas, venezuela
Disgusting but hardly suprising. Everbody knows lawyers are only here to use the system to line their pockets. They couldn't care less for their clients. Another snout in the New Labour trough. This reflects very badly on a dim and reckless government who write the cheques without question.
Edward, London,
This is a suprise because.....?. Class action suits are not for the benefit of the injured. As are all cases, the lawyers interest trumps the rest. Welcome to American lawyering. God help you.
Desmond Taylor, Houston, TX