My last blog talked about the massive cuts announced by the
Ministry of Justice in the fees Insurers have to pay to victims of motor
accidents for legal costs. I commented that the government only seems to hear
the arguments of its friends in the insurance industry.
In the High court yesterday we saw just how close they are.
This was the Judicial Review action brought by the Association of Personal
Injury Lawyers (APIL) and the Motor Accidents Solicitors Society (MASS)
contesting the way the decision was reached and seeking to have it set aside. I
should say right at the start that the action failed. More of that in a minute.
But what was alarming was just how closely the government
and insurers have worked together. A ‘summit meeting’ took place in Downing Street in February 2012. Nobody representing the
interests and concerns of victims was invited. But what came out of the court
hearing was that there had been close communications between them before that
meeting. Paul Nicholls QC for APIL referred the court to a series of emails
including one which said – ‘This looks good I think we’re getting close.’
The basis of the court action was that these secret
communications made a nonsense of any so called consultation. The court found
that there was in fact no legal duty on the government to consult in the matter.
Lord Justice Elias said that this was really a political rather than legal
matter and that the correct road for redress is via the ballot box.
So although there is no effective legal challenge we now
know how just how close this friendship is between government and the insurance
industry whose main duty is to its shareholders and for whom access to justice is
of no concern. These are the very insurers who want to take over the whole
injury claims process and exclude lawyers.
What is clear is that those who represent victims will not
lie down. In many ways the battle starts now. There will be an Appeal which is
unlikely to succeed. But as Elias LJ says this is a political matter and that
is where the argument should go, especially over the next two years as we head
towards an election. Two years to put justice on the agenda and to remove a
government which has apparently washed its hands of any concern for victims for
the sake of enhancing insurers profits.
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