Tag Archives: Solicitors

Speak Now or Forever Hold Your Peace: The Fast Approaching Deadline to Have Your IRHP Reviewed.

By Nicola Paton– Senior Solicitor

The Financial Conduct Authority (“FCA”) has recently announced the deadline for acceptance onto the Interest Rate Hedging Product (“IRHP”) Review.  The deadline to accept your banks offer to have the review of your IRHP is 31st MARCH 2015.

This gives you just over 6 weeks to submit your authority to your bank requesting the sale of your swap or collar to be reviewed.

The full review started in May 2013 and the FCA states that the banks have now sent a redress determination letter to all of the 17,000 businesses that are in the review. So far, £1.8 billion has been paid in redress, including £365 million to deal with consequential losses. Invitations have been sent to bank customers, the vast majority of those have been taken up and the reviews have now been finalised or are nearing the end of the review process.

I strongly urge everyone who obtained a loan with a bank, between 2001 to date (particularly 2004 to 2008) and whom was possibly approached by their Relationship Manager to discuss concerns over meeting loan repayment if interest rates were to rise, to contact their bank immediately and enquire if you have an IRHP.

I have many clients who were simply not aware they had such a hedging product; many were of the belief that the discussions with their relationship manager and the ‘charming man’ from the Treasury were to provide information in relation to forecasted interest rate movements.   The reality was this was a sales meeting.

A client recently commented to me that had he known he was meeting with the ‘marketing department’ he would never have taken the information provided as verbatim, he would have sought independent advice and definitely made more enquires about the product on offer.

Many businesses were not aware of the existence of these IRHPs, particularly a Cap.  You should be aware that if you were sold a Cap your bank will NOT have written to you inviting you to have the sale of the Cap reviewed under the FCA Scheme.  The burden is on the customer to issue a complaint to the bank and the bank will thereafter agree to review the sale process. It is vital you identify if you were sold a Cap and raise a complaint by the 31st March 2015 otherwise you will lose your right to have it reviewed.  Many customers may not be aware they were sold a Cap; a Cap attracts a premium which can be paid at the commencement of the start (or through the term) of the products life.   I have personally seen Cap premiums to be in the hundreds of thousands of pounds.   If your bank failed you as a customer when selling the IRHP, you may be entitled to have this premium refunded. If you are unsure on what steps to take now, or have any questions in relation to IRHP’s, please do not hesitate to contact us.

Quantum of Damages – Knowing your Heads of Claim.

By Samrah Jaffrey- Senior PI Solicitor

As some very well known and well regarded solicitors like to say in their television advert.. “because compensation is only part of the story…”

As claimant lawyers we came into the profession to do good. To help and support, and fight for justice for those who perhaps cannot fight for themselves. Too often, in the tumult of political squabbling and point scoring that seems to define dramatic battles played out on the public stage in this area, the actual claimant, the individual – the person, is forgotten. He or she is grouped into a band of people with nothing better to do than research ways of defrauding the system and asking for things they do not deserve. No doubt there are unscrupulous claimants and potential claimants out there who do this but those of us on both sides of the Claimant/Defendant divide must and do steer clear of such folk. This article does not deal with such people, they are not our concern, that concern must be reserved for the deserving, the genuinely and often quietly injured who don’t want to make a fuss and just want to get back to the way things were.

Such individuals, injured, sometimes quite badly, through no fault of their own, often are not heard in the debate – but amid the cries of compensation culture and fundamentally dishonest, they shine through as the reason for doing what we do as claimant lawyers. The impact of the injury on his or her life, the day to day limitations, the frustration of  just not being able to go about one’s daily routine, all amount to something none of us should have to suffer. It is to alleviate such suffering that we come to work every day, getting on with what seem to be thankless tasks for almost a pittance and nearly for free, (compared to the work involved)  because, such claimants are most definitely worth it. In doing this, we must look to successfully pursue the claim, all the while ensuring that in addition to the basic proposition of General and Special damages, we do not forget the raft of heads of damage covered by both these categories, together with the wider picture of trying to help the client get their life back on track.

It is not the aim of this article to deal with the catastrophic, serious or high value injury claims, rather to ensure that in even small and mid -sized claims, we are pursuing all possible heads of claim and also understanding that to us this is a claim, a file, a case to be won, but to the claimant, it is their life we are dealing with, their everyday reality. No amount of money can give back what an injury takes away but it is the only meaningful apology that can be made and is there to try and put the claimant as close to being back to the position in which they would have been, “but for “the accident. The definition of rehabilitation is to restore something to its original state, to “put back” as it were, what went before. It is an important concept that a claimant lawyer must start to consider as he/she accepts instructions, right through to when he/she settles the claim. It could involve any of the physical therapies that go hand in hand with dealing with certain injuries, physiotherapy, osteopathy, chiropractic treatment, counselling, cognitive behavioural therapy or even vocational therapy or it could mean the support that a claimant needs to make sense of their changed position, not being able to work or work full time for example, adapting to an aid or support, or just a different way of moving, climbing into bed, getting out of a car.

It is sometimes quite easy to lose sight of the bigger picture in the battle to get the compensation your client deserves, but perhaps they need a little more from their solicitor, they have already suffered the trauma of the accident so not suffering the trauma of the claims process is a bonus, otherwise it is a double whammy. Listening to the client, empathising and thinking of ways to improve their life, or to give them some of the confidence back that they may have lost, are ways that help that cannot be quantified in pounds and pence but are valuable nonetheless. Recognising that this is not easy for them, to relive something they would much rather forget, can sometimes serve as a balm for what may still be an open wound that is not just physical.

Our job is not only to think of the large things but the little things also and give attention to detail. Whilst it is easy to remember to begin the claim with Specials such as treatment, travel or medication costs, it is important to always measure each claim against a barometer of different heads to see what applies. They may not be obvious at first, but if we are alive to them, we are close to trying to put back the claimant, as much as can be done, to the position they would have been in ‘but for ‘the accident. Loss of congenial employment is no longer reserved for the concert pianist whose ability to play is affected, increasingly courts are recognising that the loss of a career that one loves, be it the pianist, policeman or indeed plumber is relative to the individual and can add anywhere between £5,000 and up to even £10,000 to a claim in certain cases.  It may not be something that immediately comes to mind but if an individual feels the loss of such a vocation, if it is important to them, it is certainly worth claiming, as recently case law suggests. Domestic care and assistance can be overlooked, or even underestimated by the claimant or those who provide it, but it is important to have that discussion with the client to see if it the possibility of it exists.  If supported by medical evidence, genuine care that is given over a period of time will have its own monetary value under this head. A Smith and Manchester [Smith v Manchester Corporation [1974]) award can in some cases amount to several months  of salary if there is a serious possibility that it will take the claimant longer than the average person to find a suitable job. Equally they may have a partial Smith and Manchester claim where they are working in a less well paid job and have a recognised and tangible risk of being thrown onto the open labour market again. All such heads may not be as far removed from each client as we might think and in gathering all these eggs into the one basket, the claimant may well come away with much more than anyone first realised, with their lawyer having the sometimes elusive , but immensely valuable sense , of a job well done.

New FPG Services for Businesses Added: Property Litigation, and Construction and Engineering Law

We have added two new areas to our Business Service offerings:

Construction and Engineering Law

Through our experienced construction and engineering lawyer, FPG Solicitors can help in the negotiation of both legal and commercial issues to ensure that developments are started in good time with both the developer and the builder being happy with the terms of the agreement.

Property Litigation

We can advise on disputes and litigation in relation to commercial properties, residential developments and residential properties. FPG Solicitors have the expertise and experience in acting for both landlords and tenants and on either side of the fence. 

For more information visit www.fpg-law.com/site/business_services or call 0203 538 3807

MedCo- The Knock on Effects…

By Kalpana Pethani– Trainee Solicitor, Personal Injury

MedCo – a new independent IT hub with the purpose of allocating independent medical experts to low value personal injury claims. The aim will be to ensure proper independence and to avoid any link, financial or otherwise, between a firm commissioning a medical report and an agency providing it. This is despite the fact that by virtue of the CPR, every medico-legal expert is already bound by a duty to be independent to the Court.

It must first be noted that the main problem does not seem to lie with the selection of medical experts, the quality of medical reports or even the cost of obtaining a medical report but rather an issue between the insurers and the Claimant solicitor. Unsurprisingly, there is an apparent lack of trust between the two.

The new MedCo system will come into force from 1 April 2015 and will work by randomly allocating medical experts to claims. It will run a mandatory accreditation scheme for medical experts. All current experts will initially be added to the system and will have until January 2016 to gain their accreditation. Any expert not completing the accreditation by January 2016 will be removed from the system.

The Association of British Insurers (ABI) assumes the responsibility for funding and building the system required to support MedCo. This no doubt raises questions about the independence of the service. In addition, given that it will be MedCo deciding which experts are qualified enough to remain on their panel, would the experts then remain independent? The whole set up suggests that it is ultimately the insurers who are commissioning the medical reports via MedCo for the Claimants. Does this mean the Claimant no longer has the right to an independent expert?

Of course, in line with this new system, the CPR and pre-action protocol for personal injury will be amended to require anyone wanting to obtain a medical report in support of a personal injury whiplash claim, to do so via MedCo. As Claimant solicitors prepare to adapt to MedCo, it remains to be seen exactly how big the pool of experts will be, how soon appointments will be arranged, and how quickly medical reports will be produced. Soon enough, Claimant solicitors will have to forgo the use of their established medical agencies and forge a new relationship with MedCo and its many experts.

FPG at The Business Show! A Few Snaps From the Exhibition and Seminars…..

All ready and set to go on day one!
All ready and set to go on day one!
If you saw us on stand 400, thank you for stopping for a chat! If you didn't get the chance to speak with one of our lovely legal team, don't worry! All our information is available at www.fpg-law.com
If you saw us on stand 400, thank you for stopping for a chat! If you didn’t get the chance to speak with one of our lovely legal team, don’t worry! All our information is available at http://www.fpg-law.com
Olympia was buzzing! Great to see so many people thinking of or already starting a new business!
Olympia was buzzing! Great to see so many people thinking of or already starting a new business!
Birdseye view....we were quite easy to spot!
Birdseye view….we were quite easy to spot!
TBS2014f
Who said legal services have to be expensive?!
Partner Karen giving a seminar with FPA Manager Account Louise Francis on the legal and financial consideration when starting a new business.
Partner Karen giving a seminar with FPA Manager Account Louise Francis on the legal and financial consideration when starting a new business.
Partner Ben giving a seminar with FPA Owner Nik Fisher on the legal and financial consideration when growing your business.
Partner Ben giving a seminar with FPA Owner Nik Fisher on the legal and financial consideration when growing your business.
Busy busy on stand 400, along with Fisher Packman Associates- our Accounting Partners.
Busy busy on stand 400, along with Fisher Packman Associates- our Accounting Partners.
Managing Partner Ben giving a seminar with FPA Manager Account Louise Francis on the legal and financial consideration when running new business.
Managing Partner Ben giving a seminar with FPA Manager Account Louise Francis on the legal and financial consideration when running new business.

Key Points to Consider When Writing Up a Contract

By Anjana Mepani– Commercial Solicitor

It is important when writing up a contract to really think about what you want to achieve from it and what the purpose and objective of the contract is. For example, is it an employment contract, a contract for the sale of item/goods or is it the contract to do something and provide a service? There are many different reasons for entering into a contract and this will look at some of the key clauses you will need to include.

If there was ever a dispute over the contract all parties would look to the agreement entered into to ascertain what it says in relation to any breaches. It is therefore important that each term of the contract is in its simplest form and clear to the reader. If anything is unclear at the contract drafting stage this should be addressed to avoid confusion in the future.

Any financial term in an agreement needs to be set out clearly. If a payment is to be made for example, when does it need to be paid and how much? Further, if there is a default in a payment what are the consequences and penalties?

A party may also wish to consider a termination clause and think about in what ways the contract can be bought to an end. This is of importance as it avoids ambiguity and provides a party with certainty.

Depending on the type of contract being entered into a party may want to include a clause containing warranties that are given by the parties. Further, a party may wish to include a clause in the contract relating to confidentiality. This is particularly important to include when a party is dealing with sensitive information or information concerning other individuals or business. For example, a confidentiality clause is particularly important in an employment contract.

Another clause of importance would be relating to exclusion and limitation of liability. This type of clause would set out to exclude and limit liability for breaching the agreement and being negligent.

A party should also set out in the agreement that only a party to the agreement can vary a term in the agreement. Although this may appear to be a simple point it is advisable to have it noted in writing within the agreement. Other clauses to consider would be a force majeure clause and a further assurance clause. A force majeure clause protects a party if there are circumstances beyond their control meaning that they are unable to perform an obligation or duty stated in the agreement. A further assurance clause requires parties to cooperate to allow the performance of the agreement for example if any deeds or documents are required to be signed by third parties then this clause is of importance.

Overall there are a number of difference clauses which are needed in a contract but this will depend on the type and purpose of the contract. It is therefore important to seek legal advice on a contract before a party enters into it.

CPD – A Timely Reminder

By Karen Fisher– Solicitor- Partner 

In the legal profession there is an annual obligation to complete a finite number of hours on CPD courses throughout the year by the 31st October as a condition for renewing your practicing certificate for the forthcoming year. This obligation is close to its deadline for the year ending October 2014 and for many of those in the profession, it stands as a focal point of the legal calendar.

CPD is an acronym for Continued Professional Development. The standard obligation is to complete 16 hours of CPD courses of which at least 25% must be from an accredited course supplier, thereby 75% can be comprised of courses provided by unaccredited suppliers or by undertaking other activities. Solicitors or Registered European Lawyers (RELs) working less than 32 hours a week will have fewer hours to complete. Not all professions have this CPD obligation. The purpose of the obligation is to maintain knowledge and skills related to their professional lives. Its purpose is to ensure competence to practice, taking in knowledge, skills and practical experience.

The merits of completing the CPD hours have been debated, and indeed the SRA announced on 21 May a new approach to ensure solicitors remain competent throughout their working lives while removing the necessity for them to complete a compulsory 16 hours’ training per year. The decision is subject to approval by the Legal Services Board. The new approach will be phased in from Spring 2015 and fully introduced by November 2016. The decision followed a consultation, which closed in April this year.

Ideally the CPD courses should be undertaken proportionally throughout the year. Invariably for most busy practitioners with target billable hours and a heavy caseload, CPD gets put on the backburner till a “quiet” or “slower” work period, which never in reality materialises. Inevitably, CPD remains a rushed affair and a burden for the final few weeks of October. The end result is that a lot of the benefit of undertaking CPD is lost when received and delivered in this manner. Using and digesting the information learnt completing back to back courses is diminished when undertaken to meet an unforgiving deadline.

Many practitioners have their own opinions on the merits of undertaking a finite number of CPD hours as a condition of renewing a practicing certificate. My opinion is that it is more beneficial for practitioners to know they have an annual CPD obligation to meet than to have none, even if the obligation is eventually met rushed with diminished benefits. Hopefully practitioners will eventually get the balance correct and fulfil the obligation throughout the year thereby maximising their effect to the ultimate benefit of themselves, their employers and also their clients.

At what stage during the growth of my business do I need a legal team?

By Nicola Paton– Senior Solicitor, Commercial Department 

In an ideal world, anyone looking to set up a business should look to have legal assistance from the commencement of drafting a business plan, rather than waiting for problems to surface.

When most people think of lawyers they almost always automatically associate them with large bills. In reality, these large bills only surface when a business has found itself in difficulties and has to react to a problem. The best way to keep legal costs low and protect your business in the market place is to be proactive. Having a lawyer assist you at the very early stages, whether that involves: drafting terms of business, drafting company handbooks, partnership agreements, employment contracts, disclaimers or simply revising the content of your website, this legal assistance will always save you time and money in future!

If businesses chose the sensible option of seeking legal advice to assist at the early stages in setting up a business, the business can gain insightful advice and recommendations from its lawyers on how to protect the business in the market place as well as ensure that any legal; compliance, policy and UK Law is adhered to. This will ensure your business will run smoothly from its first operational date.

I would further add that even for businesses that are fully operational, it is unlikely that any business wants to remain stagnant in its business arena therefore I would recommend that when a business is looking to grow and expand, possibly moving into new avenues, this would be a further trigger to seek legal advice and assistance. Any procedures, terms and agreements you have in place may not offer you the full protection you need in your new field. I would advise it is always wise, and cost effective, to have a lawyer discuss the expansion of your business and review your existing processes and contracts in place. This ensures that when you take your business forward you will not face the stress, expense, and excessive time in dealing with legal matters that arise having failed to protect your business from the outset or through expansion.

Claimant Vs Defendant

By Ratna Paul – Trainee Solicitor, Personal Injury

Rule 1.3 of the Civil Procedure Rules places a duty on both parties involved in litigation to help the court further its overriding objective. The overriding objective under Rule 1.1 is to enable the court to deal with cases justly and at proportionate cost. Under Rule 1.1 (2) (f) the objective is to enforce compliance with rules, practice directions and orders. Under Rule 1.1 (2) (d) the objective is to ensure that cases are dealt with expeditiously and fairly.

Although these two objectives were intended to help and guide Claimant’s and Defendant’s to work together to ensure that cases were dealt with justly, post Mitchell they have conflicted with each other. This has resulted in opportunistic parties to proceedings attempting to take advantage of technical or trivial breaches to have cases completely struck out from Court.

This has ultimately led to innocent parties involved in a claim being unable to have access to justice and occasionally being faced with extremely high bills of cost. Therefore, whilst Claimant’s and Defendant’s are adhering to the Civil Procedure Rules and acting in the spirit of Rule 1.3, it appears as though the overriding objective is in fact being overridden.

Post Denton the Courts have attempted to rectify this position allowing applications for relief from sanctions in addition to imposing heavy costs sanctions on parties who behave unreasonably in opposing applications for relief from sanctions under CPR Rule 44.11.  Courts have now become more willing to penalise opportunism therefore Claimant’s and Defendant’s should aim to work together in an attempt to adhere to the spirit of Rule 1.3 rather than following the words but not the objective.

“What legal issues should I consider when starting a business?”

By Karen Fisher– Partner 

There are a number of important legal issues and obligations that one should consider when starting up a new business, a few of which are discussed briefly below. If you are unsure of your responsibilities, you should seek independent legal advice.

  • Legal Structure

Usually, the first issue most new businesses consider is structure. There are three main legal structures you can choose to operate, each with varying legal burden and benefit.

You can operate as a sole trader, incorporate as a limited company, or establish a partnership, although social enterprises and limited liability partnerships are also possible for certain types of business. Establishing as a sole trader is the easiest, cheapest and quickest structure as it requires no formal registration, although it is important to note that sole traders assume the personal risk.

Key issues to consider when choosing your structure include: the tax treatment of the different forms of business and to what extent you can limit your personal liability if things go wrong.

  • VAT Registration

Your legal obligations to the taxman will vary depending on the legal structure of your business. Businesses have a legal requirement to be VAT registered if your annual turnover exceeds the registration threshold which is currently set at £77,000.

Failing to register in time incurs significant penalties. You may, however, choose to register for VAT before your turnover reaches this threshold.

  • Insurance

The insurance you need depends upon the type of business you run. Employers’ liability insurance is a legal requirement if you take on staff. Every day you remain uninsured you are at risk of a significant fines and, more importantly, remain vulnerable to compensation claims.

Other insurances which you may also consider to help protect your business from legal compensation claims are public liability, product liability or professional indemnity.

  • Licences

Whether you require a licence or other form of registration will depend largely on the sector in which you are operating and the nature of your business.

  • Bind in Writing

To prevent any future risk to your business it is important to confirm any informal, verbal arrangements for supplying goods and services in writing. If you enter into a verbal agreement make sure that you follow it up with a written confirmation and keep a written record of all agreements as this will help prevent any complications arising if things need to be proved at a later stage.

  • Terms and Conditions 

Terms & Conditions protect your rights, limit or define your liabilities and obligations and provide you with security when you sell your goods or provide a service. It is important to have clear and concise Terms and Conditions in place to protect your business.

  • Health and Safety 

Every business is responsible for safeguarding the health and safety of anyone affected by its activities, such as employees, customers or visitors to their premises. Whatever the nature of your business, putting procedures in place to avoid health and safety breaches is essential.

Your business is a valuable asset. If you consider your obligations at the outset you can protect your business and avoid significant problems further down the line. You don’t need to wait till things go wrong before you seek legal advice.