Troops in war with solicitors over fees

Independent.ie

By Tom Brady
Wednesday July 25 2007

The disputes over legal fees arise out of army deafness claims which are being fought by the troops since early last year.

Defence Minister Willie O'Dea stepped in to help them win the battle after he learned that some solicitors were refusing to deal with claims of overcharging if the bill of costs was over six years old.

The soldiers argued that since legal costs in the deafness cases had already been paid by the Department of Defence to the solicitors, the lawyers were not entitled to deduct further costs from their awards.

The department agreed to provide the soldiers with crucial details from their files including the amount of the settlement or award, the date on which payment was made, the amount paid by the State in respect of the claimant's costs and when it was handed over.

Since then, a number of the cases have been resolved and fewer obstacles are now being placed in the way of the troops seeking a resolution. However, the total number of complaints to the department has risen to 201 over the past year.

The issues were highlighted again earlier this month when Financial Services Ombudsman Joe Meade raised the case of a former soldier, who had received compensation for deafness.

Concern

His solicitor took a cheque made out to the soldier, wrote the soldier's name on the back and deposited it in the law firm's bank account.

The lawyer then deducted fees, despite already being paid by the State.

The soldier said he had not given permission to the lawyer to endorse the cheque.

Mr Meade expressed concern about the actions of the lawyer in the case.

Mr Meade's comments prompted two other soldiers to contact them and their cases are now being investigated.

The Law Society has the power to order a solicitor to repay any excessive amount charged and said it is anxious to investigate any complaints made against solicitors.

But it pointed out that the lapse of time since many of the cases were settled posed major difficulties for its investigative powers.

The regulations require solicitors to maintain accounts, including original files, for six years following the conclusion of a case and many of the deafness cases had been concluded outside of the time limit.

As a result of the limitations, Mr O'Dea decided that his department should make details available to any former or serving military personnel, who had brought claims.

Details

The Law Society pointed out that any client who was not satisfied with the manner in which their complaint had been handled could refer their case to an independent adjudicator.

Mr O'Dea said it was open to any client to make their complaint directly to the Solicitors Disciplinary Tribunal.

In one case brought to the Department's attention, a soldier was paid ?21,000 in compensation by the State and his solicitor's costs were paid separately.

But when he got his cheque from his solicitor, he found he had been paid only ?17,500 and ?3,500 had been deducted for costs.

A total of 16,785 claims were lodged for compensation for loss of hearing and 15,824 have been finalised so far, at an overall cost, including legal costs, of ?283m.

The estimated cost of outstanding claims and legal costs is ?6.8m.

The early settlement scheme using loss adjusters was wound up in 2004, having successfully disposed of 4,617 cases.

Claims received after July 2002 are generally being contested by the Department on the basis of statute of limitations.

- Tom Brady