Solicitors may be forced to hand back thousands

SOLICITORS could be forced to hand back money to thousands of clients who may have been overcharged following personal injury and other cases in the last 10 years.

As the Law Society confronts numerous allegations that solicitors overcharged abuse victims, a critic of the legal profession warned this was just the “tip of the iceberg”.

Strict legal rules have to be followed by solicitors when dealing with clients’ bills. They can never charge a percentage of any award, must hand over a written estimate following the first consultation and furnish the client with an itemised bill.

Many survivors of abuse, who say solicitors pressured them into handing over a part of their award from the Residential Institutions Redress Board, claim they took a percentage. There was no itemised bill and the first they heard of the extra fees was after the award was made. Solicitors took the money despite knowing the redress board would cover their costs and expenses.

An emergency meeting of the Law Society’s complaints committee was held yesterday.

A helpline has been set up, the society has promised to fast-track complaints and will write to all solicitors representing applicants.

Those found guilty of misconduct face the possibility of being struck off.

Law Society director general Ken Murphy admitted: “This has been very damaging to the image of the profession.”

The Law Society knew more than two years ago of an abuse survivor who had money deducted from his award. Limerick solicitor John Devane, who represents around 125 abuse survivors, admitted he took money following agreement with clients.

It was some years ago and only when it was unclear whether the costs would be covered. The money was returned after the board paid him, Mr Devane said.

Seven of the country’s most prominent legal firms, who represent many abuse survivors, yesterday issued a joint statement denying they took fees from clients’ awards and condemned the practice as “reprehensible”.

Approximately 40 people have now contacted RTÉ’s Liveline, with Joe Duffy, to claim solicitors took part of their awards. The fees ranged from a few hundred to many thousands.

“This is the tip of the iceberg,” said Dorothea Dowling, the former head of the Motor Insurance Advisory Board and current chair of the Personal Injuries Assessment Board.

Ms Dowling said the rules governing solicitors and how they deal with clients making claims dates back to 1994. Since then approximately 300,000 personal injury cases have been settled.

Under 1994 legislation, there should be no connection between the amount of damages awarded and fees. Ms Dowling believes rules are broken regularly and said people are entitled to question if they are owed money and interest.

The amount of fees paid to solicitors representing abuse victims is likely to reach close to €90 million, approximately €11,000 for each of approximately 8,000 clients.