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Andy McDonald (Middlesbrough) (Lab)
It is an honour to open this important debate and to serve under your chairmanship, Mr Hollobone. I draw Members’ attention to my entry in the Register of Members’ Financial Interests.
It would be remiss of me to start my speech without paying tribute to my right hon. Friend the late Paul Goggins, who was such an assiduous advocate for mesothelioma sufferers and their families. I attended his funeral the week before last at Salford cathedral with many other colleagues, and had a conversation with the hon. Member for Foyle (Mark Durkan), in which he reflected on Paul’s innate decency and many wonderful qualities. He summed up Paul’s parliamentary contributions by saying that his arguments were well marshalled and his responses well mannered. I will strive for those high standards today, but I fear I will never be able to emulate such a brilliant parliamentarian.
In essence, this is a mercifully simple matter, but perhaps a few moments spent establishing the background are warranted. We are here to address provisions in the Legal Aid, Sentencing and Punishment of Offenders Act 2012—LASPO—that relate to mesothelioma cases. The relevant background is that changes were made by LASPO to the way in which the generality of legal cases were funded.
I practised for many years as a solicitor with Thompsons, and before arriving in this place in December 2012, headed up a specialist unit looking after those who suffered catastrophic injuries, including brain and spinal chord injuries, and sadly, on too many occasions, cases resulting in fatalities. I also had the privilege of representing members of the armed forces who sustained serious injuries in the service of their country. I never did represent those suffering from asbestosis or mesothelioma, but I had the privilege of working alongside some wonderful colleagues who devoted their professional, and often significant parts of their personal, life to the service and representation of those suffering from this most dreadful of diseases and their families. I pay tribute to the tireless work of my former colleague, Ian McFall, who is not only an international authority in the field of mesothelioma litigation, but has been, and continues to be, a wholly committed advocate of the cause.
With the move away from legal aid support for personal injury cases, and with such state support being removed altogether, the era of the conditional fee agreement came into being. I cannot count the number of conversations I had while in practice over many years, in which I tried to explain that the description of so-called “no win, no fee” agreements was wholly inadequate. The basis of conditional fee agreements, as they are properly termed, was that if a claimant was unsuccessful, he or she would not face a bill for either their costs and disbursements or those of their opponent. Any risk was principally borne by the claimant’s lawyers. Their reward was that when they succeeded for their clients, they benefited from an uplift on their costs—a success fee paid for by the unsuccessful defendant. All that was designed to take account of other cases that were unsuccessful.
The structure was underpinned by insurance: in the event of the claimant not succeeding, wholly or in part, that insurance would provide cover for the unrecoverable disbursements and the defendant’s costs. In the absence of suitable pre-existing, before-the-event legal expenses cover, that policy would be arranged on an after-the-event basis, known as ATE. The insurance premium was borne by the unsuccessful defendants in cases where the claimant won. In successful cases, the defendant bore a success fee and the ATE premium.
All that changed with LASPO. In short, from 1 April 2013, in return for a 10% uplift on the damages paid, the principle of recovering success fees and ATE premiums was extinguished, and those cost items would now be paid by the claimant; that represented a significant erosion of a claimant’s damages. It was argued in this place that mesothelioma cases should not fall foul of those provisions, and that those cases should be exempt. It was entirely right to have those exemptions in that Act in section 44, which concerns success fees, and section 46, which relates to after-the-event insurance premiums, and the reason for that was eloquently summed up in recent times by Paul Goggins:
“An amendment was passed in the House of Lords that exempted mesothelioma sufferers. Hon. Members from both sides will recall our vigorous debates in the House of Commons over the issue and the strong sense that it was repulsive that people who are given a diagnosis of mesothelioma and know that they might have only months to live might have to give up 25% of their damages to pay a success fee to their lawyers and would therefore have to shop around to get the best deal from those who might represent them. The idea was repulsive.”––[Official Report, Mesothelioma Public Bill Committee, 12 December 2013; c. 93.]
The idea remains repulsive, and no case has been made for changing the position. A claimant in these dire circumstances should be focusing on the quality of representation and nothing else. The exemption, securing 100% recovery, allows that to happen.
Section 48 made it clear that there would be a review, in that sections 44 and 46 could not be brought into effect in cases of diffuse mesothelioma until such time as the Lord Chancellor had
“carried out a review of the likely effect of those sections in relation to such proceedings, and…published a report of the conclusions of the review.”
The Government will doubtless point to the consultation launched in July 2013 on mesothelioma claims. The relevant part is chapter 4, which runs to three pages and asks:
“Do you agree that sections 44 and 46 of the LASPO Act 2012 should be brought into force in relation to mesothelioma claims, in the light of the proposed reforms described in this consultation, the increase in general damages and costs protection described above, and the Mesothelioma Bill?”
With respect, that can hardly be properly described as a review, but more importantly, that chapter dealt with one of many matters consulted on, including fixed costs, secure gateways and new protocols, all of which were abandoned. It simply cannot be properly described as a review; equally, what happened subsequently was not by any means a report.
What we have had is an announcement, by way of a written ministerial statement from the Under-Secretary of State for Justice, the hon. Member for North West Cambridgeshire (Mr Vara), who announced that the Government
“have concluded that they intend to apply sections 44 and 46 of the LASPO Act to mesothelioma cases”.—[Official Report, 4 December 2013; Vol. 571, c. 56WS.]
That cannot by any stretch of the imagination amount to a credible review or report as specified by section 48. Statute says that those things simply have to happen before the relevant sections can apply to mesothelioma cases.
To have introduced a new regime in April 2013 with the exceptions, and then to consult on whether the exceptions should still apply, alongside a host of other matters in relation to mesothelioma claims, in July 2013 was simply ludicrous. There were just three months between the introduction of the new regime in April and the July review; that was simply far too soon for any proper assessment to have been made of the likely effects of sections 44 and 46 on mesothelioma claims. No one can tell at this stage how much clients will be charged by solicitors under LASPO. The situation is developing as the market adapts. The same can be said of the cost of ATE insurance. The Government are jumping the gun. They need to pause and commit to a genuine process of review.
Ian Lavery (Wansbeck) (Lab)
I congratulate my hon. Friend on bringing this very timely debate to the Chamber. With regard to the section 48 review, it is generally thought that it is pure poppycock and nonsense, although probably not in legal terms. Would it not be better to abandon the section 48 review and instigate a thorough review of the effects of sections 44 and 46 on mesothelioma claims?
Andy McDonald
I am grateful to my hon. Friend. His intervention is apposite. There is only one respect in which I would slightly disagree with him: he says that the review is poppycock, although perhaps not in the legal sense, but we may find that there are legal consequences to it. I am of the view that it does not withstand scrutiny as a proper process. No doubt we will return to that.
Making these changes at this pace makes it abundantly clear that the Government had made their mind up way before April 2013 that these exemptions would not last any time at all. Thereafter, to try, in some tortured way, to create a link between the mesothelioma scheme as laid out in the Mesothelioma Bill and the provisions in LASPO is simply to conflate unconnected matters. If there was one American blues artist who epitomised the approach of the Government on this issue, it would be the inimitable Muddy Waters.
Kate Green (Stretford and Urmston) (Lab)
I congratulate my hon. Friend on securing this important debate. He will be interested to know that on 13 December, while the Mesothelioma Bill was in Committee—I was a member of that Committee—the Minister wrote to me, saying that
“the Mesothelioma Bill is relevant to the timing of the application of sections 44 and 46 of the LASPO Act to diffuse mesothelioma claims, since we have always intended to implement any such decision in a synchronised manner with other reforms directed to improving the position of mesothelioma sufferers. This was made clear when parliament agreed the relevant provisions in the LASPO Act 2012.”
Has my hon. Friend found any indication of that being made clear to Parliament in 2012? I cannot recall that happening, and I have not been able to find anything that makes it clear to me.
Andy McDonald
I am grateful to my hon. Friend for her intervention. Her point is absolutely valid: I have seen no evidence of that. We are trying to compare apples and pears, and it simply does not work. There should be no linkage between LASPO and the Mesothelioma Bill. We are dealing with wholly separate and distinct matters. On the one hand, we are talking about the conduct of cases where employers and insurers are known; those cases progress in the ordinary way. On the other, we are talking about a scheme to deal with cases where insurers are not traced. It is simply disingenuous and grossly insulting to sufferers to try somehow to make a link between the two, and to justify changes that will impact on the conduct of civil cases by saying that the “untraced” scheme is being progressed. If someone suffering from mesothelioma can trace an insurer, their case will proceed in the ordinary way. That others who cannot locate an insurer have recourse to a scheme has no bearing whatever on the conduct of ordinary civil cases. It would be refreshing if the Minister could make that abundantly clear when he responds to the debate, as in my view there is no integrity whatever in such an argument.
Without success fees, some cases that should run will not, as they will be too risky. Removal of the exception will result either in those cases not running, or in mesothelioma victims having to pay out of their compensation. That was clearly not the intention of Parliament, and I urge the Government to reconsider.
Several hon. Members
Mr Philip Hollobone (in the Chair)
We are not exactly spoilt for choice, but in any event I would have chosen Tracey Crouch.
Tracey Crouch (Chatham and Aylesford) (Con)
You have made me feel so special, Mr Hollobone. I am delighted to be serving under your chairmanship.
I congratulate the hon. Member for Middlesbrough (Andy McDonald) on initiating the debate. Like him, I shall begin by paying tribute to the work of the late Paul Goggins, who was a fantastic campaigner on mesothelioma. I, too, went to his funeral at Salford cathedral a couple of weeks ago. It was an incredibly emotional yet wonderful occasion, on which people paid tribute to his life. Many things touched me throughout the service, but one thing that happened really made me realise the man he was. Tony Whitston, a long-time campaigner for asbestos victims, came up to me afterwards, and speaking to him made me realise that Paul Goggins had reached out beyond Parliament and beyond his own community to a much wider community. He was very well known for fighting many causes, but this is one for which he and I shared a great passion. It still feels bizarre that we are having a debate in the House on mesothelioma and he is not here. I still keep looking out for him in Portcullis House, as I am sure many colleagues do, wondering what he is going to say and what he is going to contribute on issues such as this.
I am sure that if Paul Goggins were here, he would share my disappointment that we are even having to have this debate today. It should not be needed. It is taking place only because of what I think is a bad decision by the Ministry of Justice, whisked out in the middle of December, on its review. We should pay tribute to the Government, because they are doing some good things on mesothelioma, but to campaigners for justice for victims of this dreadful disease, it often feels as though it is two steps forward and one step back. The Mesothelioma Bill is a really good example of that. It was a good Bill, but not a great Bill. The LASPO exemption under section 48 was a really good compromise that hon. Members on both sides of the House supported, but now we are back having to debate whether sections 44 and 46 of LASPO should be applicable to people with mesothelioma. I think that we should pause for a second and consider why mesothelioma is such an important issue.
Mesothelioma is an absolutely dreadful disease. It is nasty. People die from it very quickly and they contract it through no fault of their own. People can get mesothelioma only through exposure to asbestos—there are no other causes—and they are most likely to have been exposed in their workplace. Let us be clear: this is not just about the industrial classes. This is not just about the ship laggers who were perhaps operating in Chatham dockyard, in my constituency, in the 1960s and ’70s. It is also about professionals, such as teachers. It is about people who worked in a wider environment. I am aware of an admiral who passed away because he worked in a wider dockyard environment. He was not personally working with a hammer and nails; he was not exposed extensively to asbestos, yet he died of mesothelioma. He is one of nearly 3,000 people who die every year from this disease.
Many people seek compensation through the civil claims process, but not everyone does, because the system is so complex. One in seven people who contract mesothelioma do not bother going through the civil claims process, because it is too difficult. I think we should remind ourselves of that complexity. Whether a victim is a lagger or a teacher, they are likely to have had more than one employer, which is why case law such as Fairchild and Barker exists. The previous Government passed the Compensation Act 2006, which reversed Barker, and now we have LASPO. In addition, recent rulings from the Supreme Court make deciding whether the Fairchild rule applies even more complex. An individual who contracted mesothelioma because they worked in industry, worked in a dockyard or lagged a ship has to navigate through a minefield of complex case law, and they need specialist legal help. It is not fair that they should be punished by sections 44 and 46 of LASPO when they receive such help.
Mr Nigel Dodds (Belfast North) (DUP)
I join the hon. Lady in her tribute to Paul Goggins, who was a tremendous parliamentarian and human being, and I agree entirely with what she has said. In my constituency and across Belfast, which has a tradition of heavy engineering in the shipyards, we have many tragic cases. More than anything, relatives and family members want an easier, clearer and speedier process, and they get terribly frustrated by the lack of clarity. I endorse entirely what she has said. The Government need to look at that, and the special exemptions must be maintained.
Tracey Crouch
I am grateful to the right hon. Gentleman for his intervention. As a strong campaigner for justice for victims, I found myself in a bizarre situation last year, in that I felt sympathetic towards the pre-action protocols originally proposed in the Government review, because I felt that they might speed up access to justice and make the process simpler for victims. As it happens, the Government ditched the pre-action protocols and will introduce measures that may take away 25% of a victim’s damages to fund the conditional fee arrangements and after-the-event insurance. I want to get as much money as possible to the victim as quickly as possible. As the hon. Member for Middlesbrough has said, once people find out that they have mesothelioma, they have little time left in their lives to plan for the financial security of their dependants because, very sadly, they often die quickly and nastily within six to nine months of contracting the illness. They will not be thinking about shopping around for after-the-event insurance or the best-priced legal fees when they are trying to deal with their horrible disease.
There is a slight irony in the fact that I am speaking about mesothelioma from notes written on cards sent to me—and, I assume, all parliamentarians—by Macmillan. This debate gives me a good opportunity to thank those who support victims of mesothelioma, such as Macmillan nurses. They deal with lung cancers all the time, but mesothelioma is quite possibly the worst that they have to deal with. It is an opportune moment to congratulate those who help sufferers of mesothelioma.
I return to LASPO. When the Bill went through Parliament, section 48 granted a welcome exemption from sections 44 and 46. Parliament had its say, and the House of Lords defeated the Government on the issue. Paul Goggins, who worked closely with the then Minister on the matter, and I welcomed the measure, and we sought assurances that if there were to be any change, Parliament would be given a say on it. Lord McNally, the then Minister of Justice in the House of Lords, made it clear that although commencement orders would be introduced by statutory instrument in the usual way and did not require the approval of both Houses,
“The amendment means that the commencement cannot begin on mesothelioma claims until a review has been carried out and a report published on the likely effect of the provisions on mesothelioma claims.”—[Official Report, House of Lords, 25 April 2012; Vol. 736, c. 1824.]
I argue that a proper review has not been conducted, and a report has definitely not been published. It is disrespectful to Parliament that a decision was made in a written statement that sections 44 and 46 would be applied in this way. If that assurance was not enough, I received a letter from my hon. Friend the Member for Huntingdon (Mr Djanogly), the Minister’s predecessor, which stated that the Lord Chancellor would review
“the likely impact of the reforms on mesothelioma cases and publish a report.”
We did our very best to secure the exemption for victims of mesothelioma during the passage of LASPO. We did so in good faith, believing that a proper review would take place and that we in Parliament—and those, including the victims, who have real concerns—would see the outcome of that review in a report. We have not yet seen such a report. That is unfair on parliamentarians and, more importantly, victims.
Kate Green
I pay tribute to the hon. Lady for all the work that she does on this issue, which I know is much appreciated by victims and their families. Does she agree that without such a report, it is impossible to make sense of any changes in circumstances that have occurred since the passing of LASPO? To observers from outside, there has been no reason for the Government’s complete change in direction.
Tracey Crouch
I agree with the hon. Lady. I understand that as part of the mechanism of government, reviews are often carried out, as a consequence of which changes may be made swiftly. When we have been promised a report so that we can assess whether the impact of the changes under LASPO will affect mesothelioma victims, I expect the victims, those who have contributed to the review, and parliamentarians who have spoken about the matter to have access to that report.
Although it might be too early to conduct a proper assessment of the effect of sections 44 and 46, we must be aware that the legal ombudsman has made it clear that the changes are causing considerable stress and excessive loss not only to mesothelioma victims but to other personal injury claimants. Mesothelioma victims are a special case, for reasons that have been outlined. The Government recognised that in their written ministerial statement, and the introduction of section 48 of LASPO indicated that mesothelioma should be considered differently from other personal injury cases.
I want to pick up on the written ministerial statement, which the hon. Member for Middlesbrough has mentioned. It referred to the Mesothelioma Bill, an important piece of legislation for those who cannot trace their insurer, which will be welcomed by the 300 or so victims every year who cannot get compensation through the civil claims process. LASPO is not relevant to the Mesothelioma Bill. LASPO deals with those who are going through the complex civil claims process, but the Mesothelioma Bill is there for entirely different reasons. If we continue to mix the two pieces of legislation—the Minister should listen carefully to this, because it would have a Treasury impact—we may end up providing a disincentive for people to trace their insurer because they find it too difficult to do so through the civil claims process. If they trace their insurer, they may lose 25% of their compensation as a result of sections 44 and 46 of LASPO. We want people to access the scheme for the right reasons, and those measures create a perverse incentive for people to access it for precisely the wrong reasons.
I was going to read the exact quote from the late Paul Goggins that the hon. Member for Middlesbrough used, in order to make the point that people find it repulsive that victims of mesothelioma could be asked to shop around to get the best deal from those who might represent them. However, the hon. Gentleman made that point perfectly adequately, and I hope that the Minister heard it the first time. We must acknowledge the fact that the report has not been published. We are not trying to be difficult with the Minister—I am certainly not. All I want is to put the victim at the centre of the process. To be perfectly honest, it does not feel like that is the case currently.
I am sure that the Minister is aware that over the past few years 15 people have died of mesothelioma in his own constituency. That is the 15 deaths that are registered; it is not necessarily the 15 people who have had secondary exposure, such as the women who washed overalls or the children who hugged their father when he came home from work. Of the 15 people who were registered, statistically two of them would not have bothered to go into the civil claims process because it is too complex. Those who have, I hope, have been adequately compensated for simply going to work and contracting a disease. The danger is that the legislative changes proposed on the Minister’s watch could mean that more people do not get the financial compensation they deserve, either because they do not go through the civil claims process, or because they do and are punished by losing 25% of what they should get to lawyers or insurers.
Our system should be simple, faster and better for victims. We know how many people have died of this disease so far; we do not know how many people will die of it in future. We do know, however, that they will die quickly. We also know that they will want to pass away leaving some sort of financial security for their dependents. I urge the Minister not only to publish the report—it is a moot point as to whether the process was conducted properly or whether the question asked was at all relevant to mesothelioma victims—but to halt the introduction of sections 44 and 46 until much further consideration has taken place.
Ian Lavery (Wansbeck) (Lab)
It is, as ever, a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Middlesbrough (Andy McDonald) on securing this important debate.
Before Christmas, I was a member of the Public Bill Committee that scrutinised the Mesothelioma Bill, and it really was informative. The Labour Opposition and I missed great opportunities to try to get the rightful compensation for people who have suffered greatly as a consequence of mesothelioma. As I look around the Chamber, I see people, including the hon. Member for Chatham and Aylesford (Tracey Crouch), who clearly understand how this disease affects individuals. It is as vicious as any work-related condition that anyone could experience. We must never forget the impact it has had on families and friends.
Mesothelioma is one of those diseases where once someone has been diagnosed, the prognosis is basically death within—if they are lucky—18 months. As politicians of whatever party—red, blue, yellow or whatever— we have a duty to look after people whose only crime was going to work in unsafe conditions. At the time they were very much unaware of how unsafe the conditions were. We heard tales of people—young people; apprentices—making asbestos snowballs at work and throwing them at each other, not knowing that in future it could have a dramatic impact on their lives and those of their families. The issue is really, really serious.
I cannot continue without paying tribute, as has each Member who has spoken, to the late Paul Goggins. He made a fantastic contribution to the Mesothelioma Bill Committee and was for a long time a fantastic campaigner on similar issues, particularly those related to cancer. Of course, he was especially dedicated to mesothelioma, and throughout our consideration of the Bill he was at the front, together with the Labour Front-Bench team, fighting for what was right and for justice for these people.
The Mesothelioma Bill was a missed opportunity. Once enacted, it will underpay people who are suffering—the victims. As the hon. Member for Chatham and Aylesford said, we must at all times “put the victim at the centre of the process.” Too many others have been involved, such as the insurance company that has led things from the front. During scrutiny of the Bill, the Minister in the Committee, the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning), said quite clearly that it was not a case of bringing the insurance companies to the table to discuss compensation; they had to be dragged there. The insurance companies have made fortunes—millions if not billions of pounds—from premiums. We must not forget that premiums were paid. It is not a case of insurance companies looking for finance that was not there: the premiums had been paid by the employers, and the insurance companies have paid out dividends to shareholders instead of keeping the money for compensating dying victims of mesothelioma.
We often forget the families. The cut-off date in the Mesothelioma Bill is July 2012. That means that millions—sorry, I am getting carried away with my figures—certainly hundreds if not thousands of people will miss out on any form of compensation. At best, the individuals affected will receive 75% of damages. It is beyond me why they have to accept that. If someone gets hurt and the employer accepts it, why should the insurance company demand that they get only 75% of what the injury is actually worth? That is absurd and should not be the case for this horrendous disease. At the same time as getting only 75% of damages, the benefits clawback is being pitched at 100%.
These people, who have suffered, are suffering greatly and will suffer in future, are confused. They are confused by our debating LASPO. These people are ill, their families are looking ahead to a lifetime without their loved ones, and they are trying to understand what LASPO and CFA mean. As politicians we should be above that. We should have ensured that the families came first, as the hon. Member for Chatham and Aylesford said. The families are not aware of what section 44 and section 46 mean. They have not got a clue and, let us be honest, they are not even bothered what section 44, section 46 and section 48 of the LASPO Act mean. What they want is justice for their families and for the person who sadly will be leaving the family within 18 months at best. The review is totally flawed. As I said in an intervention, the Government should abandon the section 48 consultation.
One reason I say that the review is fatally flawed is that the Government abandoned the consultation reforms that were relevant to sections 44 and 46. They conceded that the Mesothelioma Bill really has nothing to do with the effects of sections 44 and 46, but they said that it was always their intention to “synchronise” the section 48 review and the Bill.
Kate Green
Does my hon. Friend agree that that must be at best a quite cynical statement? The argument about the Mesothelioma Bill was that a deal was being negotiated with the insurance industry, and that it would not be possible to introduce a scheme to have effect prior to the conclusion of that deal on 25 July 2012. It seems that at the beginning of 2012, when the LASPO Act was passed, Ministers were envisaging a deal that did not exist, as the present justification for saying that the two can be synchronised. They cannot possibly have been waiting to synchronise with a deal that might never have come to fruition.
Ian Lavery
My hon. Friend has hit the nail on the head with that important point, which she raised during the progress of the Bill.
The second issue is the fact that the section 48 review did not ask respondents to make the case for the mesothelioma exemption. It asked if respondents agreed with the Government that the exemption should be lifted in the light of the consultation reforms, plus the CFA reforms and the Mesothelioma Bill. Had the Government asked for the case to be made, the recent legal ombudsman’s report on no win, no fee arrangements would have been most pertinent. The report states that the CFA agreements are not simple to understand and contain unclear terms and conditions, and that there is evidence of some lawyers failing to make clear the financial risks of CFA agreements and trying to pass on the risk to customers. That is precisely the situation that the Lords feared and would not tolerate for dying mesothelioma sufferers.
As it stands, the review is not based on the effects of sections 44 and 46 on mesothelioma claims. It is based on a reiteration of the Government’s intention to apply the CFA LASPO reforms to mesothelioma claims. That can hardly be described as a review. Members of Parliament should ask the Government to abandon the so-called review and seek a proper, fuller one.
Andy McDonald
Does my hon. Friend agree that the whole premise of the review is fatally flawed? It includes the question:
“Do you, agree that sections 44 and 46…should be brought into force in relation to mesothelioma claims, in the light of the proposed reforms described in this consultation”?
Those did not proceed; they were abandoned. Does not that put the skids under the entire project?
Ian Lavery
I fully agree with my hon. Friend about that—it is question 15 of the section 48 review. It is even more reason for us to seek agreement to the abandonment of the review, and to get to grips with the real problems cutting across the Mesothelioma Bill. MPs should ensure that the outcome of a proper section 48 review is brought before Parliament and not introduced via a commencement order, as the Government probably intend. [Interruption.] Someone has turned my telephone on during the debate, Mr Hollobone: I am sure I switched it off before. I apologise for that.
The legal aspect of the matter seems extremely complicated, and I make an appeal to politicians from across the Chamber. The legislation is not really what I or many other Labour Members wanted, but it is progress. It will mean that individuals can get some form of compensation through the scheme. We must put individuals at the heart of things—the sufferers: people who are losing their lives, and families who will lose loved ones within 18 months. Such things should be cleared pretty quickly, so that families will not be bogged down in legal problems, and will fully understand the compensation procedures they want to embark on. Even if there was 100% compensation for mesothelioma it would not be enough; there cannot be enough compensation for the loss of a breadwinner, father and husband, or mother and wife. There cannot be enough compensation for the loss of someone so important in family life.
Mr Andy Slaughter (Hammersmith) (Lab)
I too want to begin by paying my respects to Paul Goggins. As many hon. Members have said, the issue that we are debating was hugely important to him. When I was researching the debate, his name ran through matters to do with mesothelioma like a golden thread—through the LASPO Act and the Mesothelioma Bill, and repeated questions to Ministers at Justice and other questions. Indeed, the last communication that I had with him, by e-mail on 19 December, was proposing this debate, and agreeing that we needed to debate the specific issue, which we had been unable to resolve through the Bill or questions. As my hon. Friend the Member for Middlesbrough (Andy McDonald) said, it is most likely that Paul would have introduced the debate. We miss him very much. Nothing sums up as well as the present issue his humanity and his assiduousness as a parliamentarian.
I thank my hon. Friend the Member for Middlesbrough, who set out the case so clearly, and other hon. Members who have spoken: my hon. Friend the Member for Wansbeck (Ian Lavery), who has just spoken, and the hon. Member for Chatham and Aylesford (Tracey Crouch). It is not the first time that either of them have taken part in such debates; they have a fantastic track record on such issues. I thank, also, my hon. Friend the Member for Stretford and Urmston (Kate Green) and the right hon. Member for Belfast North (Mr Dodds). Many other hon. Members, such as my hon. Friends the Members for Blaydon (Mr Anderson) and for Llanelli (Nia Griffith), wanted to take part but were unable to be here.
The issue matters to hon. Members of all parties in both Houses. Many of the achievements that got us where we are today came through the efforts of Lord Alton, supported by Lord Beecham and Lord Bach and of course the late Lord Newton. Finally, although he has already been spoken of, Tony Whitston should be mentioned again. He co-ordinates the Asbestos Victims Support Groups Forum. A huge amount of good work is being done on behalf of mesothelioma sufferers, including support from many claimant law firms, but I am afraid some of the arguments fall on deaf ears.
This debate is slightly different from some Westminster Hall debates, because it is not so much a general discussion as an opportunity to ask the Minister for specific action and to answer specific questions on quite a narrow point. The reason for seeking such a debate was that satisfaction has not been gained through other channels—in the Mesothelioma Bill and repeated questions on the Floor of the House—and through correspondence, as has been stated. I hope that the Minister will answer those questions and tell us when the report, which the hon. Member for Chatham and Aylesford mentioned, will be available to us.
I do not think I need to talk about the general issue of mesothelioma, other than to say that it is a long-tail disease, the symptoms of which may not show for decades. Once it has been diagnosed, death is an almost certain consequence, usually within months rather than years, and it causes terrible suffering to the victims and to their families. That is why it has been treated as a particular, special case.
Currently, there are about 2,300 deaths per year and that is still rising, although those will peak because of the curve in the mortality that comes from the negligent behaviour of employers over a period of time. The number of deaths has been growing steadily since the 1970s and will peak at the end of this decade, but there are still tens of thousands of people in this country alone who will die from the disease.
The debate pack briefings were principally concerned—not surprisingly, as it has been in the news so much recently—with the Mesothelioma Bill. It has already been made clear that that is a wholly discrete issue from what we are talking about today. I was struck by how important this issue is to the public. The pack contains cuttings from newspapers from all around the country, not just from the old industrial areas. Real anger comes through in the personal case histories, and from commentators, about how the Government have been selling mesothelioma victims short.
I will mention just one case that illustrates the important point that we are debating. The Evening Standard last Friday published the case of Monica Haxton:
“A grandmother whose terminal cancer was caused by washing her husband’s asbestos-laden overalls today described her ‘relief and peace of mind’ after being awarded £700,000 damages in a landmark case.
Monica Haxton, 66, lost her husband Ronald to mesothelioma …caused by his years spent working as an electrician in Balham.
Over the years, she said she spent hours washing her husband’s boilersuit after his shifts at Philips Electronics where he was exposed to asbestos dust while dismantling boilers.
Two years after his death in July 2009, she began suffering the same symptoms and was diagnosed with the same cancer in January 2012.
But Mrs Haxton, from Sutton, was caught up in a protracted legal dispute over the scale of her damages which has only now been resolved in the Appeal Court.
The mother of four said: ‘Ronald and I were married for 45 years and he worked there for 42 years, but the negligence of that company by failing to protect us from asbestos exposure has ruined both our lives.’”
The Standard reported:
“Mrs Haxton’s lawyers helped secure her payout after the company’s insurer admitted full responsibility for her husband’s cancer but refused her a second settlement for negligence over her own terminal cancer.
They claimed that because her life expectancy had been reduced she was not entitled to the extra damages.”
That shows something that insurers often deny: the complexity of some mesothelioma cases—causation often can be an issue—and the lengths to which some insurers will go to defend claims. The point that the insurers made in Mrs Haxton’s case is that, because she was going to die soon because of mesothelioma, she was not entitled to the same amount of damages as she would have received if she were a dependant of her husband who had not been affected and lived longer.
Thankfully, the Court of Appeal ruled entirely in Mrs Haxton’s favour. The £700,000 awarded will perhaps be of some assistance to her family, but it is no comfort to that family that both parents will have died from this terrible disease. That is the type of case we are dealing with and that is why there were arguments with the Government, throughout the progress of the Legal Aid, Sentencing and Punishment of Offenders Bill in both Houses, about why that exception should be made.
Votes as well as arguments went on in both Houses. In the other place, votes were successful, in the sense that the Government were defeated. The final defeat of the Government on this issue took place on 23 April 2012, by 205 votes to 214, on a motion on an amendment moved by Lord Alton. Consequently, on the following day in the ping-pong process, the then Minister made this concession:
“I can now give the House the assurance that we will not commence the relevant provisions in clause 43, on success fees, and clause 45, on after-the-event insurance, in respect of mesothelioma claims in April next year. Rather, we will implement the clauses in respect of those claims at a later date, once we are satisfied on the way forward for those who are unable to trace their employer’s insurer. The amendment commits the Lord Chancellor to carrying out a review of the likely effect of the clauses in relation to mesothelioma proceedings and to publish a report before those clauses are implemented.”
Hon. Members from all parties did not entirely accept what the Minister said. The hon. Member for St Ives (Andrew George), who is rightly sceptical on such occasions, said:
“On the point about the delay until the review has been undertaken, is that merely a delay or is it a genuine review? If it is a review, what will it consider and will he give an indication of its timetable?”
The Minister replied:
“Given the timing of this development, we have not thought through the exact procedures of the review, but it will certainly be undertaken before we move to ending the provisions that remain.”
That, at least was honest.
Other hon. Members made speeches, raising concerns, including the hon. Member for Chatham and Aylesford and Paul Goggins. The shadow Lord Chancellor, my right hon. Friend the Member for Tooting (Sadiq Khan), also mentioned the review and was intervened on by the hon. Member for St Ives, who said:
“The right hon. Gentleman will have heard my intervention on the Minister, when I sought to distinguish between a mere delay in the implementation of the policy and a genuine review. I hoped that the Minister would give me some indication that if the findings of a review required the Government’s policy to be amended in some way, there would be an opportunity for a rethink.”
The shadow Lord Chancellor, showing unusual confidence in the Government, said:
“I believe that this will be a genuine review…but the report needs to be based on proper evidence”.—[Official Report, 24 April 2012; Vol. 543, c. 831, 837.]
The concession was accepted here and in the other place, in good faith, because it was believed that there would be a proper review and a report. However, on 24 July 2013, considerably later, the consultation paper, “Reforming Mesothelioma Claims”, was published. That consultation was primarily about the proposed pre-action protocol, fixed cost proposals and the electronic gateway. Tagged on to the end of that paper—it really was tagged on to the end, at part 4 of that report—was a heading, “Review under section 48 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012.” The Minister was not in post at the time, but I hope that he has read it.
That peculiar document begins:
“This part of the consultation paper”
examines
“the review…The Government believes that other changes set out in this consultation, and the changes to the statutory framework for funding of litigation described above, together with the changes being introduced in the Mesothelioma Bill should make it possible, and appropriate, for sections 44 and 46 of the LASPO Act to be brought into force for mesothelioma claims at the same time as those other changes.”
It talked about a review but did not appear to be the review. The question that it posed at the end bore no relation to a review taking place. The review, if it claimed to be a review, was flawed. As has been the case throughout, it appears to have been convenient for the Government to muddle through, to let time elapse and to go back to the position they wanted in the first place.
It gets worse, because we then come to the written ministerial statement of 4 December in which the Minister blithely said:
“The Government have carefully considered the responses and have concluded that they intend to apply sections 44 and 46 of the LASPO Act to mesothelioma cases, as for all other personal injury cases.”—[Official Report, 4 December 2013; Vol. 571, c. 56WS.]
Extraordinarily, the report was not published at the same time as the statement, and it has still not been published, so we do not know what the reasons are. The statement really was a “we are here because we are here” answer. The Minister said, “We are going to do what we were going to do all along,” ignoring all the objections, the votes and the assurances that were given during the passage of the LASPO Act.
Further attempts have been made to ascertain where the Government are on this, and the issue has come up repeatedly at Justice questions. My hon. Friend the Member for Stretford and Urmston has brought it up. At the most recent Justice questions on 17 December, I raised the issue with the Secretary of State, who replied:
“Of course this is not a new problem, and in many areas we are picking up on things that were not done by the previous Government. We will bring forward a further consultation on these issues shortly.”
I do not know whether that is right, and the Minister will no doubt enlighten us on whether there will be a further consultation, but when Paul Goggins asked the same question later in the same Question Time, the Minister replied:
“We had a consultation, and we have come up with the preliminary report. As was said earlier, we will come up with a fuller report in due course.”—[Official Report, 17 December 2013; Vol. 572, c. 610, 618.]
Again, I do not know what that preliminary report is, and I do not know when the fuller report will come to light, but none of that helps to clarify the situation.
I will not take up much more time, but there has not been a proper review. My hon. Friend the Member for Wansbeck read out the question that purported to be the review:
“Do you agree that sections 44 and 46 of the LASPO Act 2012 should be brought into force in relation to mesothelioma claims, in the light of the proposed reforms described in this consultation, the increase in general damages and costs protection described above, and the Mesothelioma Bill?”
That is not a proper review, and it is not the review that Parliament was promised.
Two months after the written ministerial statement announced the decision, the report has still not been published. Most importantly, the Government have conceded that their criteria for not making mesothelioma a special case no longer apply. They conceded that point on the Mesothelioma Bill, as they did when they finally answered the letter from my hon. Friend the Member for Stretford and Urmston. A similar response was given to my noble Friend Lord Beecham and Tony Whitston, which made it clear that the only link between the LASPO provisions and the Mesothelioma Bill is that they might happen at the same time, in July 2014. Well, the World cup final is happening in July 2014, so it has as much to do with LASPO as the Mesothelioma Bill in that respect.
The second point that has been made, which I will not labour, is that, somehow, it was right to go ahead with applying sections 44 and 46 to mesothelioma claims because of the other changes that were being made. Under the influence of the Association of British Insurers, as always, the Government were pretending that the pre-action protocol, the gateway and the fixed costs would actually help mesothelioma sufferers. Let us be fair to the Government, because for once they did not go down the route of pursuing the ABI agenda. I am pleased to say that on some issues, such as the changes to the small claims limit for whiplash—with which the Government are not going ahead either—the Government are not slavishly following the insurance industry’s agenda, as they have previously. They are following that agenda most of the time, but not all the time.
Having now resiled from those positions, the Government cannot rely on the changes as a reason for not going ahead with the review and for not persisting with mesothelioma as a special case. All they are left with is the proposed reforms described in the consultation. That is a completely circular argument that takes us back to exactly where we were when the Government tried in the first place to say that the changes to CFAs and ATE premiums should apply to mesothelioma as they do to everything else. All the Government are saying is, “We were right all along. We had to say something to get our legislation through, but we never had any intention of complying with it. We have gone forward.”
Finally, I remind the Minister of the points made by Paul Goggins during our consideration of both the LASPO Act and the Mesothelioma Bill. The problem with the new cost regime is, first, that a successful claimant will pay up to 25% of their general damages as success fees. Secondly, to mitigate that attack on their damages, a claimant will have to shop around for a cheaper lawyer. Thirdly, the qualified one-way costs shifting does not provide a complete defence against costs. It does not address disbursement, part 36 offers or issues where a court decides that a claim has been misconducted. Finally, there are far fewer lawyers who will be able under the new regime to take on such cases. It may be that not only will people have to pay their own costs out of the damages but they may not be able to bring the case at all. That is without going into the problems of complexity and difficulty that, under the most difficult circumstances, mesothelioma claimants already have to deal with, as my hon. Friend the Member for Wansbeck and the hon. Member for Chatham and Aylesford have said.
With all those problems, which affect other personal injury and civil claims but which many Members of both Houses believe particularly apply in mesothelioma cases, the Government should honour their commitment to doing a proper review and a proper report explaining why, if they wish to persist with applying sections 44 and 46, they intend to do so. They should not do that in such a flippant and offhand way.
Perhaps the Minister could take the Secretary of State’s hint and go back to consult properly by calling for evidence on exactly what will be the consequences of applying sections 44 and 46. If he did that, he would find overwhelming evidence that mesothelioma sufferers are a particular case and that the Government’s commitments should be honoured. I end on that point, but I ask the Minister to tell us what the Government’s plans are, to justify the Government’s intended actions and to tell us whether he will now go away, properly consider the matter and honour the pledges made by his predecessors when the LASPO Act was considered by both Houses.
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I echo the words uttered about our former colleague, Paul Goggins. If Paul was with us, there is no doubt that he would have been in the Chamber with us today, expressing his views as passionately as he always did. Paul spoke with conviction and passion on a number of issues, and he will be sorely missed by all of us. He was a true parliamentarian, and a very decent parliamentarian at that. We will all miss him.
I congratulate the hon. Member for Middlesbrough (Andy McDonald) on securing this important debate. I commend him on the passion with which he spoke. All Members from across the political divide have spoken on this important subject with conviction and passion.
A number of issues have been raised, and I hope to be able to address some of them in the time remaining. I refer colleagues to the last sentence of the written ministerial statement of 4 December 2013:
“The Government will publish their response to the consultation, and the report under section 48 of the LASPO Act, shortly.”—[Official Report, 4 December 2013; Vol. 571, c. 56WS.]
The report is not something that is not going to appear; it will appear. I hope that hon. Members appreciate that today’s debate is in response to a request by the hon. Member for Middlesbrough. That request was made before the report was published, but it will be forthcoming.
Other issues were raised. The hon. Member for Hammersmith (Mr Slaughter) referred to comments by the Lord Chancellor. He rightly referred to consultation, and we hope to consult further with stakeholders to try to ensure that we improve the claims process. I will return to that.
Kate Green
I note the final sentence of the written ministerial statement. Presumably the report, which must be in the Minister’s hands by now, offered sufficient information and analysis to enable the Government to make their decision, so will he explain what has held up its publication for almost two months?
Mr Vara
I hope the hon. Lady will agree that, given the sensitivity and importance of the matter, it is right and proper that we should make known to the public our broad thrust of thought, rather than people having to wait a further few months before the report comes out. The hon. Member for Sefton Central (Bill Esterson) secured a debate when there was much agitation about the timing of the review, what it would say and so on. I am sorry if trying to be helpful is now being held against the Government.
Let me say at the outset that the Government recognise that mesothelioma is a terrible disease and has a devastating impact on the families of its sufferers. We take very seriously the plight of sufferers and their right to be able to claim compensation for negligently caused personal injury. The subject is, understandably, emotive, and that has been demonstrated in our heartfelt and thorough debate today, as well as during the passage through both Houses of the Legal Aid, Sentencing and Punishment of Offenders Act 2012. Debates on LASPO included consideration of the Government’s reforms to no win, no fee conditional fee agreements, or CFAs, and led to the limited exception of mesothelioma cases, to which I will return shortly.
This debate has highlighted the importance of the issue, and the Government wholeheartedly agree that, given the short life expectancy after the disease has been diagnosed, it is imperative that there is early payment of compensation when necessary. That is why we announced on 4 December 2013 that we will explore whether more can be done to improve the compensation claims process.
I appreciate that today’s debate has been about the Government’s decision to remove the limited exception from no win, no fee reforms in relation to mesothelioma cases. I want to deal with three main issues. The first is why our reforms to CFAs are the right way forward, and the second is the limited exception to these rules in respect of mesothelioma claims and the circumstances in which that exception will end; thirdly, I want to clarify the position relating to the section 48 review and how it was carried out.
I will start by setting out briefly the rationale for our changes to CFAs. Many mesothelioma claims are funded under such agreements. Legal aid has not been available for some time. The previous Government’s Access to Justice Act 1999 removed legal aid for the majority of personal injury cases, including mesothelioma cases, when alternative forms of funding, such as CFAs, were available. As hon. Members will know, the Government have introduced reforms in England and Wales relating to the way that civil cases are funded, and the costs involved in bringing those cases. Those reforms are set out in part 2 of LASPO and took forward recommendations by Lord Justice Jackson, a distinguished Court of Appeal judge.
Hon. Members will be aware that Lord Justice Jackson had been asked to investigate the high costs of civil litigation, and to make recommendations for reform. He found that the arrangements for CFAs were
“the major contributor to disproportionate costs in civil litigation in England and Wales.”
He recommended that the recovery of success fees and after-the-event insurance from defendants be abolished, saying that that would lead to
“significant costs savings, whilst still enabling those who need access to justice to obtain it.”
The Government accepted the recommendations, and they were implemented in sections 44 and 46 of LASPO, with the reforms coming into effect in April 2013.
These important reforms will generally ensure that meritorious claims can still be pursued, but at a more proportionate cost. As part of our reforms, earlier settlement will be encouraged, and damages for non-pecuniary loss, such as pain, suffering and loss of amenity, will be increased by 10%. The Government agreed with Lord Justice Jackson that the level of such damages in England and Wales was generally low, and that a 10% increase could assist claimants in meeting the costs of the success fee and other funding changes. Lord Justice Jackson argued that in the majority of cases his proposals
“should leave successful claimants no worse off than they are under the current regime”.
Those words are relevant.
During LASPO’s passage through Parliament, the Government accepted that the reforms should not be brought into effect for mesothelioma claims until a review had been carried out of the likely effect of those reforms on such cases. That review provision is in section 48 of the Act. If Parliament had intended the LASPO provisions not to apply to such claims at all, it could have legislated to that effect. In the event, mesothelioma claims were exempted, and Parliament legislated to the effect that the provisions could be commenced for claims following the conduct of a review, as set out in section 48. Of course, we must recognise that a review could lead to a number of possible outcomes—to claims continuing to be exempted from the reforms, or alternatively to the exemption not continuing.
The Government carried out the section 48 review as part of the consultation on reforming mesothelioma cases, which concluded on 2 October 2013. That was a 10-week public consultation, and all interested parties had the opportunity to participate. Some 105 responses were received from interested parties and expert stakeholders on both sides of the debate; that is the specific advantage of a public consultation. The respondents included Thompsons, the personal injury solicitors firm to which the hon. Member for Middlesbrough referred when declaring an interest at the outset of the debate.
Some respondents to the consultation questioned the timing of the review and how it was carried out. However, the Government are satisfied that it meets our obligations under section 48. The Act makes it clear that in conducting the review under section 48, the Government are required to consider the likely effect of sections 44 and 46 on proceedings on a claim for damages in respect of diffuse mesothelioma. That is what we have done.
Comments have been made about the Mesothelioma Bill and the timing of the review. As Members will know, the Government introduced the Bill in May 2013. It creates a compulsory payment scheme for victims who are unable to trace a liable employer, or liable employer liability insurer, from which to claim the damages that are rightly due. The Bill has completed all stages in both Houses and is awaiting Royal Assent. It is an important milestone in ensuring that those who were previously unable to claim can do so when the scheme is up and running.
Andy McDonald
The Minister is concentrating on the Mesothelioma Bill, but we are talking about LASPO. Does he accept that there is no connection between the two?
Mr Vara
I am coming immediately to the point that I anticipated the hon. Gentleman would refer to. In conducting the review, the Government focused their consideration on matters relevant to claims for mesothelioma that are subject to litigation—in other words, where a solvent defendant is identified. The provisions of the Mesothelioma Bill, however, apply to sufferers who cannot trace a defendant to sue for compensation. If claimants are able to identify a defendant, the Mesothelioma Bill is not directly relevant to their claim, and the Government have carefully borne this in mind.
The Government have not therefore taken the Bill into account in relation to litigated cases in respect of the review. However, the Bill is relevant to the timing of the application of sections 44 and 46 of LASPO, since we have always intended to synchronise the implementation of any decision on this matter with other reforms directed at improving the position of mesothelioma sufferers. This was made clear when Parliament agreed the relevant provisions in LASPO. Much was made of that in earlier speeches, so I refer hon. Members to a debate on LASPO on 24 April 2012. The late Paul Goggins asked the then Justice Minister, my hon. Friend the Member for Huntingdon (Mr Djanogly):
“Crucially, how will the commencement of the relevant provisions of the Bill be aligned with the proposals that the Department for Work and Pensions hopes to publish before the summer recess? I would be happy to take an intervention from the Minister if he wishes to make a clear commitment this afternoon that he will not seek to implement the relevant provisions in the Bill unless and until an improved system of compensation is in place.”
My hon. Friend the Justice Minister replied:
“I do not want to give any binding commitments about the process today, because things have not been finalised. However, I can tell the right hon. Gentleman that if the process is to be improved by the Department for Work and Pensions, which we hope it will be—he will have some insight into our proposals from the discussions he has had—that could well require DWP legislation, in which case”—
the relevant words—
“we would look to roll the ending of the provisions into the commencement of the DWP provisions. That is how I foresee the process now, but again, I am not making that a commitment.”—[Official Report, 24 April 2012; Vol. 543, c. 838-39.]
The following day, the noble Lord Alton questioned the Justice Minister in the upper House, the noble Lord McNally. Lord Alton asked:
“First, is the Minister able to assure us that there will be absolute synchronisation between the Ministry of Justice and the Department for Work and Pensions to ensure that the mesothelioma provisions in the Bill will not be implemented in advance of the new regime coming into force?”
Later in the debate, Lord McNally responded:
“I can absolutely guarantee that we will work in a synchronised way with the DWP.”—[Official Report, House of Lords, 25 April 2012; Vol. 736, c. 1818 and 1824.]
The hon. Member for Stretford and Urmston (Kate Green) was present at the House of Commons debate. She made a contribution at Hansard column 834—
Kate Green
I accept everything that the Minister has said. Are we to conclude therefore that the connection is simply about synchronisation of timing, and not in any way about synchronisation of approach to treatment of victims, or am I misunderstanding what he is saying?
Mr Vara
I hope that I am clear when I say that it is important that we synchronise the timing, so that everyone affected by this terrible illness knows what the position is, whether or not they have a traceable employer or liable insurer. It is the timing that is at issue. That is what was referred to in the debates in both the upper and lower Houses.
Andy McDonald
I am grateful to the Minister for giving way. Will he explain something? We have a group of people way over in the distance with one group of problems—in Weymouth, for example—and another group of people in Wolverhampton with another set of problems. If he addresses one situation, how would that benefit the people in the other place? They are not connected; it is just that he is trying to do things at the same time. Does he not agree with that analysis?
Mr Vara
It was agreed by Parliament in the debate that there would be a synchronisation of what the Department for Work and Pensions did and what we did. That is what has happened. I trust that Members will now allow me to proceed, because a number of issues were raised, and I want to put the Government response on the record.
The Government have carefully considered the likely effect of implementing the LASPO reforms on mesothelioma claims, including the evidence put before us by respondents to the consultation. The issues raised, however, were generally similar to those in other very serious personal injury cases to which the reforms already apply. There was little explanation of any particular feature of the mesothelioma claims process that would lead to a different or disproportionate effect on claimants’ access to justice, should the reforms apply. Ultimately, in our view, there needs to be a specific justification for the continued difference in treatment between mesothelioma cases and other personal injury cases—most particularly, other serious personal injury cases that have their own tragic features involving, as some do, catastrophic injury and the need for substantial care arrangements for the remainder of a claimant’s life, sometimes when the claimant is very young.
Let me emphasis that we entirely understand that mesothelioma victims face an appalling and fatal disease with which they and their families have to come to terms, while also having to engage with the claims process. Without in any way seeking to minimise the distress that this entails, however, there are many other serious personal injury and fatal claims, to which the LASPO reforms already apply, that produce difficult challenges for victims and families.
On 4 December, we announced that we intended to apply sections 44 and 46 of LASPO to diffuse mesothelioma cases from July this year, when the Mesothelioma Bill is expected to be implemented. When the reforms take effect, claimants will be entitled to a 10% increase in general damages. The average general damages for such cases, as set out in the Judicial College guidelines, is £70,000, so that would be an average additional £7,000 in damages.
Claimants will be liable for any success fee claimed by their lawyer, as in any other personal injury case, but there is no requirement for a success fee to be charged. The amount of any success fee is a matter for negotiation between claimants and their lawyer. Claimants will also benefit from costs protection in the form of qualified one-way cost shifting, to protect them from having to pay the other side’s costs if the claim fails. Additionally, the costs of any after-the-event insurance that claimants feel they need in order to deal with defendants’ part 36 offers—a process of negotiation between parties on a reasonable offer for resettlement—are expected to reduce. If a part 36 offer is unreasonable, a claimant is not at risk for rejecting it. Claimant lawyers tend to know what is and is not a reasonable offer. Claimants are of course liable for disbursements in relation to their case, but the general rule in all civil litigation is that reasonable costs will be paid by a losing defendant.
We announced in December that we anticipate publishing the Government’s response some time in the next few weeks. Colleagues will appreciate that we could have waited until we announced the outcome of the consultation, but we were keen to let stakeholders know the outcome as soon as possible, especially on those issues that we are not currently taking forward.
I want to emphasise that the Government firmly support the right of those who suffer from this terrible disease to be able to claim compensation. Over the past 10 years, significant progress has been made in streamlining the process, including in relation to those matters headed by Senior Master Whitaker. We wish to explore further ways of streamlining the process, and we seek the co-operation of the appropriate stakeholders.
The LASPO reforms are about tackling the high cost of civil litigation, rather than questioning the validity of claims. The Government believe that the reforms should apply to all personal injury cases, including those of the utmost severity. We have conducted the review as required, and as soon as we are able to do so, we will publish our report. In the meantime, my thanks again to the hon. Member for Middlesbrough for securing this debate. It is fair to say that we are united on at least one matter: the great importance of this issue.