Council says 30% of compo claim costs paid to solicitors

NEARLY 30% of money paid out as a result of compensation claims against one local authority has gone to solicitors representing the injured parties.

Figures released by Cork County Council officials yesterday showed that 654 claims had been settled between 2008 and 2010 with a total payout of €1,054,489.

On top of this, the council had to pay solicitors acting for their clients a further €422,000 — about 28.5% of the total paid.

However, the total payout for the period is likely to be far higher as a further 273 cases haven’t been finalised.

Cllr Seamus McGrath (FF), who sought the details, described the legal costs as “a staggering figure”.

He said the council should look at ways of reducing its compensation bill by acting sooner to repair footpaths and potholes. “Very often our response to such things is not quick enough and this leads to claims.”

Cllr Gerard Murphy (FG) said he was also concerned about the legal costs.

He said that in 2009, compensation paid out amounted to €376,444, while solicitors acting in those cases claimed €232,629. That year there were 281 successful claims and a further 122 remain to be finalised.

“We should look at some kind of arbitration by an independent person which would keep the solicitors’ fees down,” he said.

Cllr Dan Fleming (FF) asked county manager Martin Riordan if he could provide a further breakdown on the types of accidents which led to the claims.

Mr Riordan said he would furnish these details at the next meeting of the council development committee and told Cllr John O’Sullivan (FG) that he would also find out the number of cases which were dropped during those three years by people who had threatened to sue.

Mr Riordan said a lot of work had been done to address such claims, but added there was little the local authority could do to reduce solicitors’ fees if such cases proceeded to the courts.

“If you have a claim moving towards the courts, the situation is that legal costs will be incurred.

“If you (the council) settle a case too easily, you are in danger of encouraging a compensation culture.”

The council’s head of finance, Ger Power, who complied the report, warned councillors that further claims could still come in from those respective years as they were still within the statute of limitations.