Latest news with #RichardLumb
BBC News
28-04-2025
- Business
- BBC News
Oxford judge raps 'costs padding' no win, no fee solicitors
A judge has characterised the work undertaken by a firm of no win, no fee solicitors as "costs padding" in the case of a three-year-old boy who was injured on a Farm, near Christchurch, Dorset, agreed to pay damages of £3,600 for the boy's cut lip, Oxford County Court District Judge Richard Lumb said there was a suspicion that the costs reported by personal injury firm Express Solicitors, who represented the boy, may have been "artificially inflated" in order to reach a firm, in Wythenshawe, Greater Manchester, said it offered good value, was clear about its charges and had not received any complaint from its client. Judge Lumb said the firm's accounts showed nearly 90 hours of work by 14 fee earners, "all at hourly rates which were very significantly higher than the SCCO [Senior Courts Costs Office] guideline hourly rates for Manchester". The incurred costs of £29,641.80 were way in excess of the £1,860 recoverable from the defendant, he judgement continued: "It would appear that the solicitors were prepared to undertake tens of thousands of pounds worth of work for which they were not going to be paid."Any objective observer would consider that to be a very odd way for solicitors to conduct business."The judge added: "The file reveals a considerable amount of duplication of work both by individual and other fee earners."There is also a considerable amount of non-progressive work undertaken that could properly be characterised as 'costs padding'."The judge said it raised a suspicion that the costs were overstated in order for the firm to ensure that its fee would reach a capped he said the cap would have been reached in any case, and the firm could claim a £900 success fee from the a statement, Express said its practice was to agree a maximum amount by way of a percentage deduction that clients would ever have to executive James Maxey said: "In this case the judge awarded the deductions but was somehow unhappy that the costs exceeded the pitifully low fixed costs."An awful lot of work was done but the contract limited the total charges to the client to an amount which ultimately the judge approved." You can follow BBC Dorset on Facebook, X (Twitter), or Instagram.
BBC News
02-04-2025
- Automotive
- BBC News
Oxford judge dismisses £48k credit hire claim over £7k car
A judge has rejected a £48,000 credit hire claim after a car worth £7,000 was written off in a Wiltshire, 79, from Grove, Oxfordshire, was given a temporary replacement vehicle through his car insurance on 9 May District Judge Richard Lumb dismissed the claim against the culpable motorist's insurers because of procedural the question of reforming the credit hire industry, he told Oxford County Court people might be surprised by the amount claimed, given the car's value. Credit car hire is a service where a replacement vehicle is provided on credit to a non-fault driver, with the costs claimed from the at-fault driver's his written ruling, Judge Lumb said: "The benefit to the credit hire company is that they can charge, often significantly, enhanced rates for providing the credit service and this has become an extremely lucrative and by and large slick business."The case arose after a car reversed from a driveway into Mr Wiltshire's Citroen Picasso in Tenby, was given a Kia Sportage as a temporary replacement by credit hire firm On Hire Ltd, the court heard. 'Staggering costs' His insurers, acting through Winn Solicitors, which owns On Hire, tried to reclaim hire charges of £48,000 from the other a suitable replacement vehicle could have been hired for three weeks for £1,200, the court Wiltshire only signed a credit agreement a month after the accident, the judge awarded £1,200 to Mr Wiltshire's insurers, dismissing the rest of the claim due to "mistakes made by the claims handlers and fee earners".The judge added: "Many people... may also question why the courts have not intervened in this industry which, given the figures involved paid out by the insurers of the culpable motorists, must surely have an impact on rising motor insurance premiums. "Only new legislation by parliament could alter the position. Whether that will happen remains to be seen."In another recent case, the judge condemned "staggering" credit hire costs and said the insurance industry appeared to be unwilling to campaign for Department for Transport, the Association of British Insurers and Winn Solicitors have been approached for Credit Hire Organisation, which represents the industry, previously said the costs of credit hire only had a "minimal" effect on the average motoring insurance premium. You can follow BBC Oxfordshire on Facebook, X (Twitter), or Instagram.
BBC News
31-03-2025
- Automotive
- BBC News
Oxford judge slams 'staggering' credit hire car costs
A judge has lambasted the credit hire industry over the "staggering" cost of replacement vehicles following motorist was charged more than £50,000 to hire a Tesla for three months after someone reversed into her car, Oxford County Court a ruling which criticised the industry as a whole, District Judge Richard Lumb said the cost was triple the market rate for the car and the hire period was 75 days longer than it should have Credit Hire Organisation, which represents the industry, said the service was a "minor factor" in the overall cost of a motor premium. Credit car hire is a service where a replacement vehicle is provided on credit to a non-fault driver, with the costs claimed from the at-fault driver's case involved a nurse who applied to recover her costs following the damage to her parked car in Tilehurst, Berkshire, in was charged £524.70 a day for a Tesla Model 3, well above the market rate of £175 a day, the judge said there was also an "unexplained" two-month delay from when a garage received parts for the damaged Volkswagen ID4 and completed judge said a reasonable repair period would have been 21 days rather than 96. However, Judge Lumb said the reversing motorist was liable for the full £55,000 because Ms Piercy had acted "beyond reproach".He ruled: "Unfortunately for the defendant, these claims are rarely decided on the basis of what the claimant could have done to mitigate her losses."She was simply following instructions she was given having been introduced into the process by the fleet claim arm of her NHS employers."The defending motorist's insurers will also have to pay £144 for delivery and collection of the hire car, and £348 to remove the damaged Volkswagen from the scene, even though it was later found to be judge concluded: "What might come as a shock to the general public is how the Credit Hire Industry operates."In particular, some may consider the sums of money that motor insurers of culpable policyholders become liable for to be staggering."In an age where motor insurance premiums are reported to have risen to unprecedented levels, some may find it surprising that there appears to be no real appetite in the insurance industry to campaign for reform, presumably by Parliament, to control the level of credit hire charges compared to the ordinary market basic hire rate."In a statement, the Credit Hire Organisation (CHO) said the case and the value involved were unlike the vast majority of said it had calculated that credit hire added less than £5 to the cost of the average Anthony Hughes added: "Many members of the CHO are signatories to the GTA [General Terms of Agreement], a voluntary protocol which reduces friction and speeds up claims settlement times."The Association of British Insurers declined to comment. You can follow BBC Oxfordshire on Facebook, X (Twitter), or Instagram.
