Solicitor who ignored LeO fined for contempt

A solicitor who refused to comply with a Legal Ombudsman decision to return files to a client has been fined £5,000 for contempt by a county court.

A spokesman for LeO said Guy Bailey, director of Reward Litigation Solicitors in Birmingham, was the fourth lawyer to be fined by a court in this way.

He said Bailey had complied with an ombudsman's decision to pay compensation of £1,500 and apologised to the client, but refused to hand over the files. LeO secured an order from a local county court, but Bailey still refused to comply and was fined for contempt.

Reward Litigation Solicitors specialise in personal injury, financial misselling including PPI claims, professional negligence and debt recovery, among other things. They also provide services for business.

In a statement, LeO said Elaine Shail and her husband Alan, who live in Cannock, West Midlands, complained because Bailey was holding up their pursuit of medical negligence compensation.

"The lawyer was originally ordered to return the files - which were pivotal to taking the claim forward - by the Legal Ombudsman, following the couple's complaint.

"However, court action became necessary after Mr Bailey repeatedly ignored its requests, which are legally binding.

"Due to Mr Bailey's failure to transfer the files on time, Mr and Mrs Shail missed the deadline for bringing a case."

Elaine Shail said: "We were told by Mr Bailey in the early stages that we had a strong case for claiming compensation. This would have helped to pay for my husband's care and a car so that I could visit him at his care home and take him out to see family.

"Instead we have had to take out a home equity loan. I'm afraid I'll have nothing to pass onto my children as a result."

Chief Ombudsman, Adam Sampson, said: "What this case shows is that the Legal Ombudsman has teeth. Once we have made a decision the lawyer is required, by law, to comply with that decision.

"I believe it's important we have these powers so consumers know that they can trust the ombudsman to resolve an issue.

"Having said all that, the majority of lawyers are helpful and co-operative when assisting with our investigations."

LeO said it started 213 formal enforcement cases last year and recovered a total of £97,000 through an actual or threat of legal action on behalf of customers.

A new guide for older and vulnerable consumers has been posted on the ombudsman's website today.