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Peter Ellis
web site - Christchurch crèche case |
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A Christchurch law firm
that touted nationwide for business from sexual abuse victims has since won
$8 million in Accident Compensation Corporation payments for its clients. In 2002, Wakefield
Associates distributed one million leaflets pointing out that new ACC rules
allowed victims one-off payments of up to $25,000 and ongoing sums in excess
of $150,000. The mailout attracted a
storm of criticism from sexual abuse victims who said it had reopened old
wounds and from ACC specialists who said there was no need for lawyers to be
involved in lodging claims. However, according to
figures released by National MP Katherine Rich, the mailout has been success
ful, earning the firm's 1400 clients $8m since June 2002. This figure
includes $2.8m for 684 "sensitive claims" - from victims of sex
abuse or sex attacks - which is double the rate handled by Wakefield before
its mailout. In the previous five years it handled about 600 such claims.
However, in the eight months to March this year, claimant numbers fell to 141
- about half the rate seen by the firm in the previous 12 months. Wakefield charges a 25
per cent fee on any lump-sum payments, plus all of the first quarterly
payment. The ACC payment
figures, issued in response to parliamentary questions, do not reveal how
much the Riccarton-based law firm earnt in fees. Wakefield yesterday
confirmed that most clients received backdated arrears payments, "the
equivalent of a lump sum'', which attracted a 25% fee. "The figures
concern me greatly," Rich said. She said most claimants
did not need a lawyer, especially those making sensitive claims because a
specialist ACC unit was dedicated to handling them. "It is an
unnecessary brokerage fee. People can front up to any ACC office, make a
claim and retain any amount they are eligible for." However, Garry
Wakefield, of Wakefield Associates, said the legal fees amounted to just 3%
when lifelong payments to claimants were taken into account. He said the "huge
expenses" involved, including the mass mailout, made it "barely
justifiable". It had made mass
mailouts in 1999 and 2002. He said the 2002
mailout was prompted by the firm's concerns that large numbers were not
receiving ACC entitlements. "Our views have been proven to be correct." Wakefield said it had "certainly
been the experience of our clients that specialist legal advice has been
beneficial". In April 2002, the
Government introduced one-off lump-sum payments for sex abuse claims,
prompting warnings that claimant numbers would soar. Only victims who have
suffered abuse since the law change were entitled to a lump-sum payment. Under ACC rules, a
sexual abuse victim may apply for compensation without laying a criminal
complaint but must visit a general practitioner or counsellor to describe the
abuse and mental injury. The counsellor would send ACC a report detailing the
crime, the injury and its impacts, plus a treatment plan. ACC was yesterday
unable to say how many lump sums had been paid out since the law change. |
