Anger over RTA small claims plan

Claimant lawyers have reacted angrily to government plans, published today, to raise the small claims limit on whiplash cases, or possibly all RTA cases, to £5,000.

The move, set out in an MoJ consultation, would force most whiplash victims to represent themselves.

Matt Currie, partner at Irwin Mitchell, said: 'Small claims may be effective for disputes over washing machines but it isn't suitable for more complex injury cases.

'Those claimants who did use the small claims track would face the ultimate David and Goliath scenario '“ bringing their own claim with no legal expertise against large corporate defendants with the best lawyers money can buy. That can't possibly be right or fair.

'If they are serious about tackling the problems in the current system, then they should continue to focus their attention on the multitude of claims management companies who add little or no value, rather than making genuine victims suffer further. They could start by banning text messaging and cold calling right now.'

Karl Tonks (pictured), president of APIL, said independent research had found that in the case of a whiplash injury, 70 per cent of people would not know how much to claim.

'Defendants and their insurance companies, on the other hand, will know exactly how much a claim is worth and it is the duty of insurance companies to look after their shareholders, not injured people,' Tonks said.

'Getting fair and just compensation really will be an uphill battle '“ many people will be put off from even trying.'

Tonks added that whiplash claims fell by around 24,000 last year and of those who have ever had a whiplash injury, almost 40 per cent have never claimed compensation for it.

Iain Stark, Chairman of the Association of Costs Lawyers, said the proposals 'could spell disaster for both consumers and the legal profession' and the 'ultimate victim' would be access to justice.

'I foresee a whole new unregulated industry being created to handle claims below £5,000. Furthermore, the courts will be flooded with litigants in person, which will put huge strain on their already limited resources.

'The lack of joined-up thinking is also breathtaking. The government is already consulting on a 60 per cent cut to legal fees for the system that currently deals with whiplash cases worth up to £10,000 where liability is admitted.

'These new proposals will remove most cases from the system, leaving just the higher value, more complex ones at unfairly low fee levels. The government needs to pause for breath and think through its approach before piling on yet more reform.'

Defendant lawyers gave the plans an usually cautious welcome.

Richard West, partner at Kennedys, warned: 'It's important that the Ministry of Justice does not create change for change's sake.

'There are many good reforms to the legal landscape fast approaching which should have a substantial impact on whiplash claims.

'The government must resist the temptation to push too much through too quickly or they risk undermining the undoubtedly good intentions underpinning this consultation.'