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Beresfords often banked more money for its work on a coal health claim than the total sum of damages awarded to its client.
The Solicitors Disciplinary Tribunal heard yesterday of a case in which the law firm represented the widow of Mr I., a dead miner, and earned more than ten times the sum that was awarded to her.
The offer of damages made to Mr I.’s estate, on behalf of the Government, was £281.77, a sum that Beresfords advised Mr I.’s widow to accept.
The solicitors’ firm was paid £2,431.08 by the Government for handling the claim, but it was not happy to stop there.
Mr I.’s widow had signed a no-win, no-fee agreement with Beresfords, which entitled the firm to claim a percentage of her damages as a success fee. A member of staff asked Doug Smith, one of the partners, whether, given the tiny award, he wanted to waive the fee. Mr Smith had no such intention. He refused, telling the employee to “claim the success fee to which we are entitled”. This led to another £64.04 being deducted.
The result was that Mrs I. was left with £217.73. Its £64.04 success fee raised Beresfords’ earnings in the case from £2,431.08 to £2,495.12.
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