New laws designed to limit the cost of legal aid could cause problems for retailers defending accident claims, according to commercial property agent Prop-Search. The changes may prove hazardous to small businesses – even if they are found not to be at fault upon the conclusion of the hearing.
Prop-Search surveyor Samantha Jones
Under the terms of new legislation included in the Legal Aid, Sentencing and Punishing of Offenders Act 2012 (LASPO), legal costs can no longer be recovered by a company of any size even if found to be “not guilty” unless the defendant in the trial is an individual. However, even if this is the case recovering the costs may prove difficult as costs will be capped at legal aid rates.
Prop-Search Surveyor, Samantha Jones, believes that small retailers are caught in a no-win situation thanks to the changes in the law.
She says; “For an acquitted corporate body that cannot make a claim for legal costs under a defence cost order, they may recover costs through a wasted costs order, where the court is satisfied that it is justified.
“As a result, it is believed that many businesses will not even bother to contest cases brought against them, even if they are not at fault.”
Former Justice Minister Ken Clarke drafted the legislation in response to soaring legal aid costs caused, in large part, by the rocketing number of “no win, no fee” legal firms which encourage members of the public to seek compensation for accidents.
However, Prop-Search believes small firms seeking help in dealing with trip and fall claims from the public could suffer as a result of the changes and this spells bad news for small firms struggling to cope with the current economic situation.
Prop-Search advises any small business concerned about what this move could mean for their business to seek advice, as well as ensuring all areas of their commercial property conform to the highest standards of health and safety in order to minimise the chances of a claims case being brought against them.
Measures which can be taken include maintaining a strict cleaning regime, clearing up any spillages promptly, avoiding the creation of trip hazards and using signs to warn the public of wet flooring or uneven surfaces.
These steps are also useful for retailers given the latest change in legislation by the Health & Safety Executive (HSE). A “Fee For Intervention” scheme has been launched, meaning that the HSE will now be able to charge businesses for the time taken to investigate a material breach of health and safety obligations on their premises if found guilty.
With the hourly rate set at £124 per hour for an HSE inspector, this could make a significant dent in a small firm’s annual budget.
While the HSE tends to deal primarily with firms which have warehousing, haulage or distribution operations, Ms Jones warns that properties which are currently under control of local authority health and safety inspectors will not necessarily escape the charges.
She says; “Retailers should also be aware that there is the possibility that the new charging scheme could be extended to local authority health and safety officers in the future.”
