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Bc Disease News a Weekly Disease Update 22 May 2015 Edition 96 BC DISEASE NEWS A WEEKLY DISEASE UPDATE CONTENTS PAGE 2 Welcome Welcome PAGE 3 Welcome to this week’s edition of BC Disease News. In the last week it has been indicated that reform of noise-induced hearing loss claims is on the new Reform may be on the way government’s agenda, and Slater and Gordon has said that Quindell will remain a separate entity under its ownership. for deafness claims This week we present a feature examining this week’s decision of the Quindell to remain separate Supreme Court in Zurich Insurance PLC UK Branch v International Energy entity under Slater and Group Limited [2015] UKSC 33. We consider the judgment, reaction to it, and Gordon the implications of it. MRO seeks judicial review of Any comments or feedback can be sent to Boris Cetnik or Charlotte Owen. MedCo As always, warmest regards to all. SRA warns firms on marketing following SUBJECTS introduction of inducements ban Possible Reform of Deafness Claims – Quindell to Remain Separate Entity Under Slater and Gordon – SRA Warning on Inducements Ban – Master of PAGE 4 Rolls Calls for Simplification of CPR – Insurers’ Liability in Mesothelioma Claims – Zurich Insurance PLC UK Branch v International Energy Group Master of the Rolls calls for Limited simplification of Civil Procedure Rules Feature: Insurers Only Liable for Proportionate Share of Exposure in Mesothelioma Claims, Supreme Court Rules – Zurich Insurance PLC UK Branch v International Energy Group Limited [2015] UKSC 33 PAGE | 2 division (PSD) will be a separate entity was made by the MoJ, it could not be Reform may be on the from the Australian firm, dealing with reasonably argued that MedCo was way for deafness claims volume cases. abusing a dominant position. Approval for the sale to Slater and Gordon We will update on the progress of this It has been indicated that reform of noise- is now awaited from the Financial Conduct challenge, alongside the ongoing induced hearing loss (NIHL) claims may be Authority. challenge to MedCo on the grounds of on the new government’s agenda for inadequate consultation, as we have reform, following comments made by the Kinsella said that the Slater and Gordon reported previously. head of the government’s Claims 1 approach will not change. ‘We’ve not Management Regulator (CMR). changed our strategy at all’, he said. ‘One side of the business would deal with the SRA warns firms on Kevin Rousell told the Modern Claims complex cases and the other with volume marketing following Conference in London that the area has and low-level cases in an efficient seen a big increase in activity in recent way…Overall [it offers] scale and the introduction of years in consequence of the regulations opportunity to learn across the two, applied to it. [providing] technology and a holistic inducements ban service and a joined-up service in terms of ‘NIHL is subject to the disease claim costs claimants for low-level or high-volume The Solicitors Regulation Authority (SRA) regime which is different to personal cases, and in particular in that complex has warned personal injury firms about injury’, he said. ‘There seems to be an area having resources to take on cases’. misleading marketing, following the awful lot of waste in the system. We had introduction of the ban on the use of lots of it in respect of financial claims such 5 inducements. as PPI and we’re seeing it happen again MRO seeks judicial with NIHL’. In a guidance note the regulator said that review of MedCo firms must ensure publicity is accurate, The prospect of future reform to the NIHL ‘including not offering or suggesting or market was echoed by Professor Dominic One of the country’s largest medical implying that you are offering any Regan, an attendee at the conference and reporting organisations (MROs) is seeking inducements in breach of the ban. Doing leading expert on civil litigation. He to challenge the government on account of so is likely to undermine the trust the tweeted on 19 May: ‘Top of agenda for considering itself prejudiced by the new 4 public places in you’. MOJ is reform of deafness claims’.2 MedCo portal. The SRA has decided not to introduce any Elsewhere, Mr Rousell confirmed that Though an application for judicial review specific rules to implement the ban on reversing the recent court fee rises – which by Speed Medical against the Ministry of inducements, which came into force on 13 were increased by over 600% in some Justice (MoJ) was rejected last week by April under section 58(2) of the Criminal cases – is unlikely to be a priority for new the High Court on the papers, the Justice and Courts Act 2015. The Act justice secretary Michael Gove. He said: company yesterday issued a notice to defines an offer of a benefit as an ‘The next five years are going to be just as renew its application at an oral hearing. inducement if it is ‘intended to encourage testing – I doubt we will be going back and or is likely to have the effect of reducing court fees – we will have to live Since 6 April, a claimant seeking to bring a encouraging’ a personal injury claim. with them’. low-value whiplash claim following a road traffic accident is required to instruct a ‘Benefits’ include money, other property or medical expert from a shortlist generated an opportunity to obtain a benefit, such as Quindell to remain randomly by the MedCo portal. This list is through a prize draw. The ban is cast made up of either one high-volume separate entity under widely, extending under section 58(3) to national MRO (a tier 1 provider) and six benefits received by third parties. other (tier 2) providers, or seven individual Slater and Gordon medical experts. The SRA said in its guidance note: ‘The Quindell’s legal services arm will remain a primary focus of any action we take is Speed is one of the tier 1 providers. In a distinct company from its new parent consumer protection and support for the claim lodged in late March it contended Slater and Gordon once the £637 million rule of law…A breach of the ban on that only including one tier 1 provider in takeover is complete, Slater and Gordon inducements would be likely to undermine the list was anti-competitive. has said.3 public confidence in the delivery of legal However, Mr Justice Leggatt last week services. It is also likely that offering Neil Kinsella, chairman of Slater and rejected the application, saying that as inducements will evidence a failure to Gordon UK, told the Modern Claims MedCo was not an MRO itself and the uphold the rule of law and the proper Conference that the professional services decision on the content of search results administration of justice...As well as PAGE | 3 complying with the law, you should simplifying the rules. With proper Feature: Insurers Only ensure that you behave in a manner that resources, said Dyson, ‘there is no is in your clients best interest, does not reason why the joint committee of our Liable for Proportionate call into question or undermine your Civil Justice Council and Civil Procedure integrity and that you comply with your Rules committee could not embark on a Share of Exposure in regulatory obligations’. similar exercise here’. Mesothelioma Claims, The SRA’s guidance note also advised England and Wales could also learn from firms on the use of inducements on those Brazil, the Master of the Rolls said, where Supreme Court Rules areas outside personal injury where they a new civil procedure code has been – Zurich Insurance are still allowed: ‘You will need to approved and will come into force in consider the needs and circumstances of December. Article 191 of the new PLC UK Branch v each individual client, for example Brazilian code ‘allows the parties to whether they are particularly vulnerable modify the procedure as it applies to their International Energy or whether they may have difficulties claim’. understanding the information you give Group Limited [2015] them…It is important that you are able to Dyson said it was ‘worth thinking about UKSC 33 show that clients have made an informed whether to adopt such a procedure here’ decision, having considered the options to enable claims to be dealt with more available and that you have treated them expeditiously. He said: ‘Provided Introduction fairly. A decision to instruct should not be agreement between the parties is subject based on your offer of an inducement in to court consent, I can see no objection to The Supreme Court has ruled this week exchange for clients’ instructions…If you allow parties some freedom to manage in a landmark judgment that an offer an inducement to clients or potential the litigation’. employer’s liability insurer which covered clients, you must ensure that your an employer for only part of the period interests do not conflict with those of your Praying in aid of Magna Carta, Lord during which the employer tortiously client. You can never act where there is a Dyson, who is chairman of the Magna exposed a victim to asbestos is liable in a conflict, or a significant risk of conflict, Carta Trust, said chapter 40 of Magna mesothelioma claim only for a pro rata between you and your client’. Carta, which provides ‘To no one will we part of the employer’s liability to the sell, to no one deny or delay right or victim, equivalent to the period of justice’, was as important as it was in exposure to asbestos covered by the Master of the Rolls 1215, though the main focus of attention insurer as a percentage of the total calls for simplification tended to be on the prohibition of the sale exposure.
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