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A solicitor who specialises in claiming compensation for sick coalminers has banked a personal profit of more than £30 million from the government-funded scheme.
Jim Beresford is the head of a three-partner firm of Doncaster solicitors, Beresfords, which has been paid more than £140 million from the public purse for its work on coal miner health claims.
New figures reveal that between 2004 and 2006 Mr Beresford's share of the firm's annual profits was £27.5 million - in a two-year period during which he grew richer by more than £37,000 per day.
During the past five years Mr Beresford, 58, who was named last year as Britain's highest-earning solicitor, earned £30.2 million.
The bulk of Beresfords' profits came from fixed fees paid by the former Department of Trade and Industry for damages claims processed by the firm on behalf of former miners and their estates.
Beresfords registered more than 90,000 claims by former British Coal workers with dust-related lung disease or a hand condition caused by vibrating machinery.
More than 760,000 claims were made by law firms across Britain. When the final payment has been made next year, it is estimated that £4.1 billion will have been paid in compensation and that claimants' solicitors will have earned a total of £1.3 billion.
According to government figures last year, the average legal fees paid to Beresfords for its work on each settled claim was £2,264, only £25 less than the average compensation awarded to each of its clients of £2,289.
The multimillion-pound earnings generated by coal health claims has led to a spectacular transformation in the lifestyle of Mr Beresford and his two partners, one of whom is his 29-year-old daughter, Esta.
Mr Beresford is now a director of Doncaster Rovers Football Club, owns a £1.8 million private jet and a string of cars including a Bentley, a Ferrari and two Aston Martins.
A stately home and a racehorse also feature among the benefits mined by Beresfords' three partners from the lucrative seam created by elderly and dying pit workers.
More than 69 per cent of lung disease claimants received less in compensation than it cost the Government to administer their claim. Tens of thousands of miners were awarded less than £1,000. The smallest award was 50p. More than 19,000 claimants died before they received anything.
Mr Beresford's name cropped up last year when the influential Commons Public Accounts Committee examined the Government's handling of the coal health scheme. Sir Brian Bender, Permanent Secretary at the Department for Business, Enterprise and Regulatory Reform, (the former DTI) said he was “deeply concerned about the sums of money that the legal firms have had”.
Edward Leigh, MP, the committee's chairman, later said: “What has come out of the hearing ... is the scandalous profiteering on the part of some solicitors on the back of the taxpayer.”
Mark Farrell, Beresfords' chief executive, emphasised that “fees payable to Beresfords for handling these cases were fixed by the DTI following negotiations with the Claimant Solicitors Group, a national representative body. Exactly the same fee per case, dependent on the category, is paid to every participating solicitor in the UK. It therefore follows that solicitors handling large numbers of claims would make larger sums of money.”
Mr Beresford is among dozens of solicitors who have been ordered to appear before the Solicitors Disciplinary Tribunal in relation to their work on miners' claims.
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Surely the government should have stopped this after the first people stared getting back a pittance
Ash, Leeds,
My father received £350 for injuries and ill- health suffered by him as a result of working 50 years down a coalmine. Beresfords received over £2000 for processing a few forms. This is yet another example of this Government paying loads of money to undeserving fat-cats.
Derek Addison, blackburn,lancs, Uk
The lawyer bashing should stop , Mr Beresford worked hard and helped many miners recover compensation,the chrages were agreed with the dtI.
Is it not simply Sir Brian Bender and others suffering from the green eyed monster or is it the British pastime of finding fault with a sucess story.
Gerard Reilly, liverpool, england
Just another example of legal theft. Happens all the time and nothing is done about and never will be.
tony freeman, tampa, usa
DTI and or it's advisers who drafted initial contract to blame. The lawyers are taking fees which they are entitled to under the agreement. Readers should spot common denominator here e.g. " overgenerous" GP contracts or Chinooks that cant fly as essential software code clause not in contract.
Larry, Winterbourne, England
I agree that there is something terribly wrong with the imbalance, but:
Tony Campbell, Northampton: I am curious - do you hand back 70% of your salary each month?
Michael Lockhart, Australia - your comments are so wide of the mark as to be irrelevant. This has nothing at all to do with judges.
Brian, Leeds, UK
so all the staff working to get the miners what the DTI was willing to pay them for their illness did not deserve to get paid for the 3 years or so it can take to win compensation? if the dti refuses to compensate the miner then the firm who ran the case get nothing for all the work they have done.
Rob, Doncaster, England
THe DTI fixed the fee scale at far too high a rate - most of these personal injury claims are very much in the same mould, and and could have been handled by comparatively junior staff with minimal supervision by a partner - GBP500 tops a case!
Chris Robinson, Hong Kong, Hong Kong
In the same week that a top Army officer complained about the low salaries paid to soldiers fighting, and sometimes dying, in operations, including in Afghanistan, Iraq, etc, how odd to hear the mammoth sums mined by such solicitors as Mr Beresford, legally! Something wrong, surely.
John Nagenda, Kampala, UGANDA
How I wish that town planning consultancies could operate similar rackets.
Arnold Ward, Weybridge, Surrey, UK
What a sick Country we live in now. MP's sponging of taxpayers, Lawyers sponging of taxpayers. Kids killing themselves with knives and guns. MP's dont bother appearing at House of Commons to debate because they are too busy spending their expenses ripped off from taxpayers etc etc etc Nice !!.
John, Woking, Surrey
Adverts for miners' compensation have littered local newspapers for years. My grandparents were claimants. To think that a large proportion of this money has gone to pay some so-called 'entrepreneur' is despicable. Capitalism should also have its morals. A pity some people have forgotten.
victoria, Doncaster,
I am a solicitor handling personal injury claims . Experience and skill are necessary , but for most claims the work is essentially process driven. I charge a fixed fee of £400 a claim . Proportionate to the value of the claim; I do not have to wrestle with my conscience ; and my clients come back !
John Moseley, Monmouth, UK
Jim Beresford took advantage of a government funded scheme, and grew his business within the framework of UK law. If any investigation is to be done it should be into the DTI, not Beresfords. In most other countries Jim Beresford would be classed as an entrepreneur.
Graham, Bradford, England
The ex-MP Tony Blair's contituency was Sedgefield of whose population has a high proportion of ex-miners and their Labour-voting wives. Anyone need anything else to explain how this all works?
clive, enfield,
When you consider the nature of the claims being made what kind of solicitor can take a fee that is nearly 100% of the final sum? It seems that they had no conscience & used the rules to enhance their own life style. What a wonderful gesture it would have been if they had only paid themselves 30%!!
Tony Campbell, Northampton, UK
Self Regulation must end. Look around any town in the UK these leaches are everywhere, some of the buildings display the wealth that is made by these unscrupulous people. And yes the judiciary are complicit.
NB, Some politicians are Lawyers !
Wills, Soton, UK
This is appalling - the miners deserve 100000 times more than the solicitors. The solicitors should only get a small fee for handling their case, as the evidence is mainly medical. A disgraceful state of affairs allowed by this appalling Labour government.
Robert Pitt, Scarborough, UK
Why haven't these solicitors yet appeared before the Solicitors Disciplinary Tribunal? The Law Society is dragging its heels as many solicitors drag out cases.
Rodney Barker, Gainsborough, England UK
This is quite inexcusable,how on earth could it happen?Some body must know.
EDWARD SYNGE, Tisbury, UK
And will anyone's head roll at the DTI for this latest fiasco? Of course not. The core problem is that civil servants can make the most appalling decisions but are subsequently never held accountable for them. Maybe the odd dismissal without pension rights might focus their minds?...
Simon, London, UK
The legal scum are just as corrupt and dishonest in Australia as they obviously are in the UK & the US. We need Radical change, BOOT OUT! so called "judges" who are going along with these rorts and letting the scum get away with theft (the money comes out of the pockets of the average tax payer).
Michael William Lockhart, Toowoomba, Australia
Disgusting!
martin, doncaster,
According to my calculations Mr. Beresford would have to spend less than 20 minutes on each of the claims he processed to earn the amount he was paid between 2004 and 2006. Shame on any Government that allows such theft of taxpayers money. Shame on Mr. Beresford and his firm!
Patricia Thornton, Veliko Tarnovo, Bulgaria
My mother received compensation for the death of my father from emphysema and, without the solicitor contacting her to tell her she was entitled, she would never have known and therefore wouldn't have received anything. These solicitors are also spreading joy as well as making money for themselves.
Johnny, London, UK
Has the time come for the working class to refuse to pay any further taxes until the sleaze in government and every other law unto themselves get rich quick merchant have their hands firmly removed from our pockets. As a tax payer I believe I am the victim of financial rape where are the Police?
Cromwell, Leeds, England
It's of no comfort knowing that your solicitors are just as avaricious as our attorneys here in the colonies. Clearly an illness that survived the passage across the Atlantic.
Mike, Sacramento, United States
It appears the fill your boots culture extends beyond the Palace of Westminster.
Mike O Connor, plymouth, uk