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Bc Disease News a Weekly Disease Update 25 November 2016 Edition 165 BC DISEASE NEWS A WEEKLY DISEASE UPDATE CONTENTS PAGE 2 Welcome Welcome PAGE 3 Welcome to this week’s edition of BC Disease News. Asons Solicitors Receive Controversial Bail Out From In the last week it has been revealed that Bolton County Council has awarded a Local Council ‘secret’ emergency grant of £300,000 to Bolton based claimant solicitors firm Asons Solicitors Ltd. The timing of the grant has caused much controversy as it PAGE 5 was made alongside a claim by HMRC against Asons, also for £300,000. Elsewhere, the High Court has ruled that a part 36 offer extinguishes a previous common law offer to settle. Part 36 v Common Law Offer To Settle This week we present, in the first of a two part feature, a return to the topic of asymmetrical hearing loss and noise exposure and consider whether it can be Government PI Reforms compatible with a diagnosis of NIHL by considering some recent studies on the Open To Judicial Review? subject. PAGE 6 Any comments or feedback can be sent to Boris Cetnik or Charlotte Owen. Update On Review of Fixed As always, warmest regards to all. Recoverable Costs Majority of Solicitors Fail to SUBJECTS Stick To Budgets Survey Reveals Asons Bail Out – Part 36 Offer v Common Law Offer – Government PI Reforms and Judicial Review – Fixed Recoverable Costs Update – Solicitors Fail To Stick To Feature Budgets – Asymmetrical Hearing Loss and Noise Exposure. Asymmetrical Hearing Loss And Noise Exposure PAGE | 2 Cliff Morris has explained that the grant was intended to assist the firm with its move to Asons Solicitors Receive different premises earlier in the year and to ensure that the 263 jobs tied to the firm are retained in Bolton for the next five years after the firm had suffered losses in the previous Controversial Bail Out financial year. In a statement Cliff Morris said: From Local Council ‘The council’s investment will be repaid through their business rates, which we estimate to be more than £460,000 and this will be reinvested across the borough. This is on top of the Last week it was revealed that Bolton value from retaining the firm in the town centre, which should return £10m to our local County Council has awarded a ‘secret’ economy over the next five years’. emergency grant of £300,000 to Bolton based claimant solicitors firm Asons However, the controversy surrounding this grant has increased following revelations in Asons’ Solicitors Ltd.1 annual accounts that HMRC are attempting to recoup exactly £300,000 in relation to PAYE/NIC due as a result of previous profit extractions that are chargeable as earnings from 3 The award was made by Bolton Labour employment. leader, Cliff Morris, under the Emergency Doubt has also been raised over likelihood of repayment of the ‘investment’ due to Asons Powers Procedure (EPP), in a meeting which themselves, in their annual accounts, listing the recent PI reforms as ‘the key risk facing the was closed to the press and public. Bolton business. Council’s constitution describes the EPP as Other local solicitor firms have also been criticising the grant, with one partner at a rival the:2 claimant firm reportedly stating:4 ‘Authority to take any action on behalf of ‘This is extremely worrying. Law firms up and down the country have been subjected to the the Council in any cases of urgency’. same challenging market conditions as Asons, so why has it been given preferential funding?’ However, there is a procedure which must be followed before this power can be Another Lancashire solicitors firm has said that they intend to report the grant to the National exercised which includes: Audit Office to see if further action is required. It stated:1 - Consultation to be undertaken by ‘The local health services are under pressure and the council itself has announced the officer seeking to use redundancies, so you have to ask how it can afford to do this’. emergency powers with the relevant Scrutiny Committee Chair Alongside these criticisms, some news sources have highlighted the apparently close (or Vice Chair) with an relationship that Asons CEO, Dr Imran Akram, has with many prominent Labour politicians, explanation given as to why the including, the Bolton Labour leader Cliff Morris, Labour Party Leader Jeremy Corbyn and EPP is being used. London Labour Mayor Sadiq Kahn. The following picture was featured on a local Liberal 6 - The Executive Cabinet Member Democrat news page: (Councillor Morris) is authorised to take the decision but the relevant opposition members should be informed of the action proposed. - A report should then be submitted to the next meeting of the Executive Cabinet Member for information detailing the actions taken and the reasons why. Notwithstanding these requirements, opposition leader and Tory Councillor, David Greenhalgh, has insisted that he was unaware of the Asons grant decision until the day of the leader’s meeting when the report on the issue was submitted (although Councillor Morris maintains that Mr Greenhalgh was copied into correspondence from the start of the process). PAGE | 3 Tory leader for Bolton council, Mr Greenhalgh has put a motion forward for the council’s next full meeting on 30 November asking for a named vote. The motion will state: ‘This council disagrees and disapproves with (sic) the decision made by the leader of this council, made under Emergency Powers, to award a grant of £300,000 to Asons Solicitors towards refurbishment and occupation of their offices at 40 Churchgate, and agrees to issue a public statement to the residents of Bolton stating thus.’ Each member of the council will have to state publicly whether they agree with this Image: Proposed New Ason Offices 9 statement.7 Other opposition parties, including the Liberal Democrats and UKIP are currently preparing questions and motions for the upcoming council meeting at the end of the month. UKIP chief for Bolton Sean Hornby has called on residents to protest outside the town hall before the meeting goes ahead.8 The lack of information provided by Bolton Council has prompted a member of the public to submit a freedom of information request, requesting the following information: - The justification for the grant - Any applicable terms and conditions - The specific council budget from which the money was/will be provided The response to this request is due from Bolton Council no later than 12th However, these plans did not pan out and Asons suffered a particularly difficult financial year December 2016. with their annual accounts for the year to 31 May 2015 showing a pre-tax loss of £1.14m on Many readers will of course be familiar with annual turnover of £13.6m. This compares with a profit of £864,444, on turnover of £15.9m in Asons due to their significant presence in 2014. The accounts also show that in 2014/15 Asons purchased goods and services of £2.1m the NIHL market. In 2013 Dr Imran Akram, from Yourclaimlawyer Ltd, whose sole shareholder is Irfan Akram, a sibling of Kamran Akram.10 pictured below, announced an ambitious expansion plan, including, doubling in size As a result, the £8million investment into the new office was put on hold in December 2015 with fears reported that instead of 300 new employees being taken on, there would have to by taking on 300 new employees, investing 1 £8m into creating a new office building be redundancies. Instead, in August of this year, Asons moved into a four storey building, with a gourmet restaurant and glass formerly belonging to Bolton News, costing £1.1m which boasts a range of features including a pool table, newly fitted kitchens with all modern conveniences, football table, a Samsung projection technology and opening branches in Singapore, Dubai, New York smart TV in every room and area, four meeting rooms, lockers, coat rails, lounge furniture in and Pakistan as well as London. This was the Asons Hangout, a timeline wall detailing the history of Asons, a coffee room, staff holiday part of their intention to be ‘the last man photo wall, a faith room with ablution facilities and rooftop lounge garden for future standing’ after the Jackson reforms. barbeques. P AGE | 4 Asons finally responded to the criticisms ‘In my judgment, because one is dealing yesterday afternoon by releasing a media Part 36 v Common Law with an initial common law offer, the impact statement which accused local rival Offer To Settle on it of any counter-offer has to be solicitors firms of waging a ‘smear addressed by reference to common law campaign’ against them. The statement principles. A part 36 counter-offer is still a In the judgment of DB Mortgages v Jacobs said:1 counter-offer’. Solicitors [2016] EWHC 1614 (Ch), the judge Mr Andrew Hochhauser QC, held that a ‘It’s disheartening to see the criticism that However, regarding the defendant’s part 36 offer acts as a counter-offer that the awarding of this business grant has second argument, the judge was not as extinguishes an earlier offer to settle based attracted, including the judgemental, agreeing. He said there was no basis for on common law principles.13 sanctimonious and opportunistic implying any time limit for acceptance of a comments from other local law firms and common law offer, stating: The decision was in relation to an solicitors. Our competitors have been allegation of negligence made against ‘One cannot on one hand seek to take assuming the worst based on limited Jacobs Solicitors by DB Mortgages. In advantage of the fact that this is not a part information, and using social media and August 2015, the defendant made an offer 36 offer, for the purpose of invoking the comments sections to employ dirty tactics.
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