Small retailers face finding themselves thousands of pounds out of pocket defending themselves against accident claims, even when they are found not to be at fault. The warning comes from commercial property consultants Cushman and Wakefield as new laws come into effect limiting the costs of legal aid.
The situation has arisen due to legislation included in the Legal Aid, Sentencing and Punishing of Offenders Act 2012 (LASPO). Under the terms of the act, legal costs are no longer recoverable by a company found not guilty except in cases where the defendant is an individual. Even in these circumstances recovery is difficult and costs will be capped at legal aid rates.
The legislation was drafted by former Justice Minister Ken Clarke to tackle the spiralling costs of legal aid and it is expected to add to the financial burden of the increasing number of claims small retailers face from the public for minor slips and falls. The number of claims has risen due to no-win, no-fee companies encouraging individuals to allow them to act on their behalf in pursuit of compensation.
Now it is the retailers themselves who are in a no-win situation according to Michael Lewis, an associate director of risk management with Cushman and Wakefield.
“They might be liable for thousands of pounds in legal fees-even if they win. So in many cases it may be cheaper for them to just pay up and not fight the case,” Mr Lewis said.
He continued to say that, as the legislation has just been introduced we would have to wait to see how it worked out in practice. However, he strongly advises retailers and landlords to seek the latest advice on the impact it could have.
“It is certain that the financial and economic implications for businesses on the wrong side of health and safety laws will continue to be substantial and potentially debilitating,” he said.
The Health and Safety Executive (HSE) has the following advice to prevent slips and trips in retail properties.
Following these common sense guidelines and assessing potential risks as they arise will reduce the danger of facing accident claims and the legal costs they may incur.
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