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Pothole payouts top repair bills | Pothole payouts top repair bills |
(about 2 hours later) | |
Councils in England and Wales are paying out more in compensation claims relating to potholes than they spend on repairing them, research suggests. | Councils in England and Wales are paying out more in compensation claims relating to potholes than they spend on repairing them, research suggests. |
The Local Government Association (LGA) says legal cases - driven by no-win, no fee lawyers - have led to compensation payouts of £53m and £12m in case costs. | |
But the figures, taken from an Asphalt Industry Alliance survey of councils, show just £52.3m was spent on repairs. | But the figures, taken from an Asphalt Industry Alliance survey of councils, show just £52.3m was spent on repairs. |
The Law Society denied Britain was plagued by a "compensation culture". | |
But LGA spokesman David Sparks called for the law to be tightened in respect of no-win, no-fee cases. | |
He said: "These figures show the extent to which our efforts are being hampered by the compensation culture that exists nowadays. | |
"Since no-win, no-fee was introduced, almost all councils have seen an increase in compensation claims. | "Since no-win, no-fee was introduced, almost all councils have seen an increase in compensation claims. |
'Spurious claims' | 'Spurious claims' |
"Of course, where people have a legitimate claim, they're entitled to compensation, but there's a real fear that no-win, no-fee lawyers are clogging up the system with spurious claims from people just chancing their arm." | "Of course, where people have a legitimate claim, they're entitled to compensation, but there's a real fear that no-win, no-fee lawyers are clogging up the system with spurious claims from people just chancing their arm." |
The LGA, which represents more than 400 councils in England and Wales, says the £53m could have paid for repairs to an extra 946,429 of the estimated 3.5 million holes in roads. | The LGA, which represents more than 400 councils in England and Wales, says the £53m could have paid for repairs to an extra 946,429 of the estimated 3.5 million holes in roads. |
Around 64% of local authorities provided data for the survey during 2007 and the LGA said the figures showed staff spent 40,801 days dealing with the claims. | Around 64% of local authorities provided data for the survey during 2007 and the LGA said the figures showed staff spent 40,801 days dealing with the claims. |
Figures released in March suggested councils in Scotland had paid out £2m in compensation due to claims over road defects in the previous five years. | Figures released in March suggested councils in Scotland had paid out £2m in compensation due to claims over road defects in the previous five years. |
Valid grounds | |
The Law Society says solicitors are bound by rules which mean they can only pursue cases which have a "reasonable chance" of success. | |
Its president, Paul Marsh, said perceptions about compensation culture were incorrect and that Britain spent less on payouts than any other industrialised country. | |
âPeople have to exercise common sense about the risks inherent in day-to-day life," he said. | |
"But it is a fundamental principle that people should be able to obtain compensation when they suffer genuine injury because of the wrongdoing or negligence of others." |
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