Law firm raises concerns over asbestos admin and legal fees29 September 2006
Compensation for asbestos related diseases
Thompsons Solicitors has raised concerns over a £70m bill being paid to the administrators and their lawyers in connection with a compensation deal for asbestos victims across Great Britain.
The bill has been put in by administrators and lawyers acting on behalf of Federal Mogul, the US parent company of Turner and Newall.
Administrators, Kroll, were put in charge of negotiating a compensation scheme for employees who had been exposed to asbestos while working at plants and factories across the country.
Many workers went on to develop diseases like mesothelioma and many have died while waiting for their compensation.
After five years of negotiations a compensation deal was agreed earlier this month and claimants accepted an offer of 20p in the £1. It means victims will share a £69m fund. Some mesothelioma victims with claims worth £100,000 would only receive £20,000.
But it has been revealed that Kroll has charged around £40m for their fees and their legal and professional advisors are set to receive a further £30m.
It is understood the bill will be paid in full.
Federal Mogul went into administration in 2001, freezing all compensation payments. At the time Federal Mogul faced claims in Britain estimated at up to £340m.
Ian McFall of Thompsons Solicitors said: "I gave my time as an unpaid volunteer on the creditors committee to argue that victims should receive the best possible compensation deal from the administration of Federal Mogul."
"Originally asbestos claimants were offered just 7% of what their claim was worth, but through negotiations most people will be likely to receive payments of around 20%. For those families who have suffered, it will be hard to accept that they get only 20% while the administrators and their lawyers will be paid their bill of £70m in full."
Asbestos disease diagnosis? Talk to us for advice and support on how to secure compensation.
If you or a loved one have been diagnosed with an asbestos-related disease, we can support you with advice on how to make a claim.
The process will be explained in plain English and with no obligation – our priority is to provide you with the best, expert advice on whether you have a valid case for compensation, and to signpost you to further sources of support.
There are strict time limits applied to making a claim – usually three years from the date of diagnosis. It doesn’t matter if the exposure to asbestos took place – as it often does – decades ago, the three year time limit applies to the date of knowledge of diagnosis or date of death.
For further information, visit our How to Make A Compensation Claim page.