Dáil Éireann Debate, Tuesday - 11 February 2014
165. Deputy Dara Calleary asked the Minister for Finance the total amount of money spent by the State Claims Agency on legal fees in 2012 and in 2013; if he will provide, in tabular form, the firms paid in each year; the amount paid to each firm; the average settlement period for claims concluded in 2012 and in 2013; his views on the average length of time to settle a case; and if he will make a statement on the matter. [6631/14]
Amharc ar fhreagraThe information requested by the Deputy is set out under the following subheadings.
1. Total amount of money spent by the State Claims Agency on legal fees in 2012 and in 2013
|
- |
2012 (€m) |
2013 (€m) |
|
Legal Cost Transactions per year |
17,165,197 |
18,443,185 |
|
Total Defence Legal Costs |
21,931,385 |
24,314,355 |
|
Total Claimant Legal Costs |
39,096,582 |
42,757,540 |
Defence costs are fees paid by the SCA to solicitors engaged to act in the defence of claims managed by the SCA. Claimants' legal costs may be paid as part of the settlement of a claim.
As the SCA has delegated certain personal injury related and third party property claims management functions, it is mandated to ensure that the liability of the State in relation to such claims, and the expenses of the Agency in relation to such management, is contained at the lowest achievable level. In conjunction with the delegated State Authorities, the SCA has a strong track record in reducing the cost of managing claims under its remit.
The following are some of the more notable methods used to manage and reduce such costs:
I. Solicitors' Fees
In 2010/2011 the SCA invited tenders in respect of the provision of legal services by solicitors' firms in connection with its personal injury (non-clinical), third-party property damage and clinical claims portfolios. Following the tender, the SCA reduced the level of fees paid to its retained solicitors firms by approximately 25 per cent. In addition the SCA imposed caps on the levels of the fees paid to its panel solicitors in respect of catastrophic injury.
II. Barristers' Fees
In 2012, the SCA announced a new procurement structure requiring barristers to engage in a competitive tendering process under which their fees were capped at up to 25 per cent below pre-procurement levels. This was the first time a State agency had procured barristers services for personal injury litigation in this way. Under the new procurement process, barristers were required to set out their fees - subject to the respective caps specified by the SCA - for a wide range of legal services in respect of personal injury actions in the District, Circuit and High Courts. The new procurement structure also provided for a panel of barristers, to provide services to the SCA, who had less than five years practice/experience, so they could gain relevant experience in the area of personal injury actions. This was an initiative by the SCA to encourage younger barristers and to create greater competition at the Irish Bar by increasing the pool of barristers available to it. The barristers procurement initiative attracted approximately 1,000 applications.
III. Optimal Claims Management and use of the SCA In-House Legal Team
The SCA claims management teams endeavour, wherever possible, and in the appropriate cases, to settle claims prior to the issue and service of legal proceedings, thus reducing the State's overall legal costs bill. In addition, a proportion of litigated claims are handled by the SCA's in-house legal team, thereby reducing the outsourcing costs in respect of legal services. In 2012 the in-house legal team was expanded and a separate, dedicated legal team was established to deal with clinical claims. When fully established it is estimated that an annual saving of approximately €4 million may be achieved.
IV. Claimant Legal Costs
The level of legal costs paid to plaintiffs' legal representatives is carefully reviewed and, wherever possible and by means of negotiations, the SCA seeks to achieve the maximum possible reduction in legal costs. If the SCA cannot successfully agree the level of legal costs to be paid to plaintiffs' legal representatives, the matter is determined by a Taxing Master.
V. Money Recoveries/Third-Party Contributions
The SCA vigorously pursues all available money recoveries in accordance with best claim practices and as permitted by law. One such example is the recovery of damages and costs by means of third party/ codefendant contributions. Whether by adjudication of the court or agreement with the third party/codefendant, a specified percentage contribution in relation to a particular claim may be paid by the third party/codefendant to the SCA. Additionally, in certain cases, an indemnity in full may be received from a third party/codefendant.
2. In tabular form, the firms paid in each year; the amount paid to each firm
Defence legal costs:
All legal services engaged by the SCA in the management of claims under its remit are drawn from its panels of barristers and solicitors. The SCA can provide a breakdown of fees paid to individual firms in 2012 and 2013. However the collation of this information will require 2 -3 weeks to compile and ensure accuracy and I will write to the deputy with this information when it becomes available.
Claimant legal costs:
A breakdown of claimants' legal costs, by individual firm, is much more time consuming due to the volume of firms. As stated previously, these firms are engaged by the claimant and not the SCA.
3. Average settlement period for claims concluded in 2012 and in 2013;
The average end-to-end lifetime of claim (time from date logged with SCA to date the claims management process is complete) is included in the table below.
|
Class |
Public Liability (PL) |
Employers Liability (EL) |
3rd Party Property Damage (PD) |
Clinical claims |
|
Average lifetime 2011 |
2.4 years |
4.1 years |
335 days |
2.9 years |
|
Average lifetime 2012 |
2.7 years |
3.7 years |
301 days |
3.7 years |
|
Average lifetime 2013 |
3 years |
3.7 years |
350 days |
4 years |
Please note the above table is completed by the SCA on an annual basis but does not include HSE ELPLPD as this portfolio was delegated in 2012 and as yet is immature. It shall be included in 2014 figures.
The claims management process is complete only when plaintiff's costs have been resolved either through agreement or by means of taxation. The resolution of costs can add a year or more to the average life time of a case.
