Clock Ticking on Miners Facing GBP 1.2 million High Court Bill

Without insurance, 65 miners have less than a week to find GBP 600,000

May 26, 2006 - Press Dispensary - 65 miners, backed by John Mann and the Action Group for Miners (AGM), who joined a failed legal action against the Union of Democratic Mineworkers (UDM), must pay initial costs of £600,000 by Thursday 1st June 2006. Their bill comes after the High Court threw out an application for a Group Litigation Order, supported by the AGM and Bassetlaw MP, John Mann.

And in a further development, the offshore insurance company stated to be providing cover for the High Court legal action has categorically stated that it does not intend to make a payment under any policy.

In rejecting the “misconceived” application, which constituted, “a gross abuse of the system” Sir Michael Turner ordered that the claimants are now liable for legal costs, currently estimated at £1.2 million. In a press statement, the applicants’ solicitors, Greene Wood and McLean claim, “a policy of insurance is in place to protect [the 65] miners against such an order.” However, Sir Michael Turner concluded in his Judgement that there is a, “lack of any certainty about the sufficiency of the insurance in terms of amount of cover and its enforceability.”

Since then, a letter to Brooke North Solicitors, acting for UDM/Vendside states: "I have no hesitation in declaring the policy void ab initio. As [the insurance company] received no premium, no refund is therefore due to the policy holders."

Consequently, 65 miners whose claim against the UDM and Vendside was dismissed by the High Court, now have just a week to work out how they are going to meet the £600,000 they have been ordered to pay.

The legal bill could escalate even further, as a result of Greene Wood and McLean’s refusal to accept the High Court’s Judgement. Sir Michael Turner refused permission for an appeal, but the solicitors insist they will pursue an appeal that stands little chance of success and will only increase the miners’ liability.

In summing up his Judgement, Sir Michael Turner questioned the motivation behind the application: “There is no doubt that in some of the publicity material which was put out by, or on behalf of, the Action Group for Miners, misleading information was published. Such information could have persuaded miners to transfer their cases from their existing solicitors to one of the 4 firms who were on the panel of solicitors instructed, or referred, by the AGM.”

Richard Stockdale of Brooke North Solicitors, representing Vendside and the Union of Democratic Mineworkers, says, “Even though it is a self declared not-for-profit organisation, the AGM with John Mann’s support, has pursued an extravagant and spectacularly unsuccessful attack on the UDM and Vendside, which is now putting at risk those they claim to support. It is time the AGM and John Mann MP carefully considered how best to serve the interests of sick and dying miners and find the money needed to clear the outstanding legal bill.”

- Ends -

Vendside was set up in 1997 by the Nottingham Section of the UDM (under accountants advice for VAT reasons) to handle miners compensation claims for the UDM.

Vendside is the only company to have a separate and individual claims handling agreement (CHA) with the DTI which formally authorises them to bring claims on behalf of miners.

Vendside is not subject to the jurisdiction of the Law Society.

Claimants, who pursue claims through Vendside, sign an agreement, whereby non financial members of the UDM agree to pay a fee, on a sliding scale, if their claim is successful.

No successful claimant has ever paid more than £600 to Vendside, and many have paid considerably less.

The AGM could only find 65 claimants to join their group action, while Vendside and the UDM have already secured £158 million compensation for more than 29,000 sick and injured miners.

For further information please contact:
Vickie Tindall, Harrison Cowley
Tel: 0113 237 0777
Email:
Site: www.harrisoncowley.com