Legal Aid, Sentencing and Punishment of Offenders Bill

Lord Walney Excerpts

Tuesday 17th April 2012 Commons Chamber

[Mr Djanogly]

All non-clinical negligence personal injury cases, including respiratory disease claims, have been out of the scope of legal aid since 2000—let us acknowledge that—under changes introduced by the last Government. Although some expert reports may be required in respiratory disease cases, the Government are not persuaded that they differ substantially from other personal injury cases in a way that merits the retention of the recoverability of after-the-event insurance premiums.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

The Minister may be aware that Barrow is the constituency with the second highest number of mesothelioma suffers in the country. Does he not understand how insulting and potentially distressing it is to those sufferers to be branded as part of a compensation culture?

[Mr Djanogly]

As I said, this is a question of what lawyers get paid. I am in no way assessing the vulnerability of the individuals whom the hon. Gentleman mentioned.

I point out to the hon. Gentleman that significant steps have been taken in recent years to lower the barriers to bringing compensation claims for these disastrous diseases. A fast-track procedure for mesothelioma cases has been introduced in the High Court. Over the past few years, various legal changes, including primary legislation such as the Compensation Act 2006 and judgments of the Supreme Court, have removed many of the hurdles for sufferers of respiratory diseases in bringing claims.

The legal climate in which such cases are brought has been transformed in recent years. Judgments of the Supreme Court have removed many hurdles, and a judgment only last month means that victims of this dreadful disease who are able to trace an insurer will now be paid and not miss out on compensation. As I said, a fast-track procedure has been introduced to ensure that claims are dealt with as quickly as possible.

A key outstanding barrier is identifying the employer’s liability insurer when an employer no longer exists, and the Department for Work and Pensions continues to work with stakeholders to see what more can be done to address that. Overall, however, cases are much less difficult to undertake than in the past, and there is no reason to believe that legal firms will stop bringing them, even under the new arrangements, or that they will be particularly expensive.

--- Later in debate ---

[Tracey Crouch]

I thank my hon. Friend for his intervention. It is clear that this disease affects many people.

In recognition of the high number of cases of mesothelioma, and of the swift and horrible deterioration in the health of its victims, my local primary care trust continues to invest in providing specialist nursing for meso victims, including dedicated Macmillian nurses and support staff. That is hugely welcome for those who suffer directly, and for the families who support them through their dying months. I should like to thank them for their commitment and dedication in often very difficult circumstances.

I should like to see everything possible being done to support mesothelioma victims, especially in regard to providing financial peace of mind before they pass away. Anecdotal evidence shows that sufferers often pass away long before their claim has been settled, leaving their grieving families to settle the claim. Sometimes, the stress of doing so is too much and the claim is no longer pursued. Much has been done on the employers’ liability tracing office, but not much has been done on the insurer of last resort, the employers’ liability insurance bureau—ELIB. That is disappointing. Each party is blaming the other for the lack of progress, as is always the case. The people who lose out are the victims and their families. Although this involves a different Department, I hope that if the Government take away one message from my short contribution today it is that there should be no more delays. It is time to resolve the issue and set up ELIB now. Too much time has passed on consultation, and it is time for action.

If I have one concern about Lords amendment 31, it is its breadth. I want to see meso victims receive a fair package of compensation, and I am concerned that the Bill as drafted will cause a significant sum of their compensation package to be lost in success fees paid to lawyers. The amendment is not meso-specific and could be interpreted as relating to other respiratory diseases—hence my slight hesitation in wholeheartedly supporting it. However, meso claims account for over half of all asbestos-related claims, so, on balance, it is an important addition to the Bill.

I recognise that the proposed Jackson reforms include a 10% uplift in general damages. I note the Association of British Insurers is warning that mesothelioma sufferers might not benefit from those reforms if the amendment goes through. I do not believe that, and I want to issue the counter-warning that, on fatal industrial diseases such as mesothelioma, the Government will be judged on what they do to help victims, whether through financial or other types of support. The 10% uplift is necessary and right.

I know that others are keen to speak and, as promised, I shall listen to the rest of the debate with interest. I pray that I never contract a disease as nasty as mesothelioma, but I also pray that the Government do all that they can to support those who do, including by providing easy access to justice and ensuring that full and fair compensation is paid to the victims as quickly as possible.

[John Woodcock]

It is an honour to follow such a powerful and brave speech from the hon. Member for Chatham and Aylesford (Tracey Crouch). She spoke incredibly well on the subject.

I wish to speak briefly in support of Lords amendment 31, and I hope that the Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly) will listen carefully. I also hope against hope that he will reconsider his decision, because the sight of him sitting there laughing while this subject is being discussed, and labelling victims in my constituency and across the country who suffer horribly as being part of a compensation culture and a racket, does a gross disservice to those people, and ultimately to the Government he represents.

Let us be clear—as the Bill stands, individuals who have contracted horrific and rapidly life-shortening diseases could now be required to pay the cost of bringing their case out of the damages they receive rather than have the defendant meet the costs. This represents a major change to the underlying principles of criminal damages cases in the UK, creating the potential for unlimited costs to be borne by successful claimants. In extremis, it could lead to a defendant, having successfully proven that their employer’s negligence has left them with an almost certainly fatal disease, being left with a bill to pick up for bringing the case.

[Mr Djanogly]

It is important to get this right. The particular disease falls within the Government’s proposals to introduce one-way cost shifting, which will mean that losing claimants will not pay defendants’ costs.

[John Woodcock]

As the shadow Minister has made clear, it does not cover disbursements. The Minister has not been able to set out a proper case. He has tried to claim that compensation will go up as a result of these reforms. Frankly, all the people looking at this—I see the Minister nodding his head now—do not agree. Given the level of concern and alarm expressed by victims who contract the disease incredibly quickly, many thousands of people are left wondering when they are going to be struck, and the families left behind cannot understand the Government’s attitude towards this incredibly difficult subject.

On average, those who successfully pursue claims for mesothelioma see compensation in the order of £65,000. Under the unamended Bill, their lawyer could receive 25% of that. On top of that, their after-the-event insurer could take an increased premium, and because mesothelioma claims are risky, those premiums can be very high indeed.

From my own constituency, I have seen the appalling impact of mesothelioma on the lives of those who suffer and their families. The industrial tradition of Barrow and Furness means that shipyard workers are particularly affected because of the historic use of asbestos in ship construction. This has left the town, as I said in my intervention, with the second-highest mortality rate from this disease among males anywhere in the country—topped only by West Dunbartonshire, which is, of course, another shipbuilding area. These people served their country through the fine ships they built to defend our shores. They were failed by successive Governments, and this Government now have a duty to address that wrong. That is why sufferers have pushed and pushed for better compensation, and that is why it would be a travesty for this House to vote today to reduce the payments they can get.

[Toby Perkins]

I start by echoing the distress expressed by my hon. Friend the Member for Barrow and Furness (John Woodcock) about the tone of the Minister’s remarks, which showed a real lack of empathy with the situation that mesothelioma sufferers and their families face. What happens in so many of these cases is that victims become aware of the illness many years after they been exposed to asbestos, and often after the organisation responsible for that has long since disappeared. They face a troublesome problem in identifying who was responsible in the first place and they are then faced with the shocking news that their lives are shortly going to come to end and they are going to experience agonising circumstances in the run-up to their deaths.

For many of the people who have been on that journey, the last thing on their minds when they receive this appalling news is the idea that they need to embark on some complicated and potentially costly hunt for compensation. People who work with victims of asbestos-related diseases, such as mesothelioma, say that it is hard to persuade them to make claims because they are so heartbroken by their recent experiences. They tell me that if those who seek advice learn that there may be a cost impact, many are likely to choose to let the matter drop. It would be a real dereliction of duty on the part of all of us if we allowed that to happen.