OK. Before cracking on I really need to exempt our First
Base Agency Chairman Hilary from any of the thoughts about lawyers which are
about to appear on this page. Hilary is a complete star in every respect and she
is absolutely the kind of force for good lawyer that John Grisham has written
about to such effect over the years.
So. Please consider that paragraph to be a disclaimer. Is it legally binding?
Christ knows.
I recently got to thinking about the massive legal bills we
all pay without realising it when my two sons were trawling the web in search
of a sane motor insurance quote. Of course the ludicrous sums the young people
of today are expected to fork out for their first couple of years driving are
widely known. The going rate seems to be about £1800. For a newly qualified driver working
full time on the minimum wage, this represents about a sixth of their total
income which is quite frankly ridiculous. When I paid my first insurance bill
back in 1977 I had a job delivering drinks to tables at the weekly Country and
Western night at a local pup. Yeah. I know. A Country and Western night in Blackburn 1977! There were some sights, believe you me.
Anyway.
I cannot recall exactly how much I had to cough up to insure my
venerable old VW Beetle, but I don’t remember it being particularly painful. It
certainly was nothing like a sixth of my very part time income. So what has
changed? Are cars that much more expensive? No. My ten year old Beetle cost me
£400. Today I knock around in a ten year old Volvo Estate which set me back
£300. Are the roads that much more dangerous? I very much doubt it. Car safety
has come on in leaps and bounds and there were no speed cameras back then. Were
the first time drivers of my generation that much more sensible that today’s? Aye
right. I think it is fair to say that the youth of the late seventies was a
whole lot more anarchic that today’s youngsters. After all it was the era of
raging football hooliganism, street riots and punk rock.
So what has changed?
The law has changed.
Back in 1977 it was illegal for lawyers to chase ambulances in order to offer their services on a no win, no fee basis. It is yet another
regrettable American import that we have opened our doors to. Now you only have
to listen to a commercial radio station for half an hour to hear at least five
ads for ambulance chasing law firms.
The result is the era of the cricked neck where a minor
shunt can lead to an insurance company shelling out hundreds of thousands for the
cricked neck of the driver of the car in front. Back in 77 the bill might have
been fifty quid or so for a dented rear end. Now it can run to a couple of
hundred thousand and the ambulance chaser in the middle of the deal will
trouser a cool £80,000. Obviously the insurance companies have to find a way to
get this cash back and they do so by crucifying the young.
Three years after I took my first spin in the Beetle as a
newly qualified driver, I started out on what was supposed to be a career as a
lawyer. Against all sensible odds this particular grammar school boy from
Blackburn has blagged his way into a place to study law at Magdalene College ,
Cambridge . They
gave us a couple of days to settle in and then gathered all the wannabe legal
eagles together and loaded us up onto a train to London . We were met the other end by an old
boy of the college who took us along to his chambers. Over coffee he basically
told us how much money we would all make if we were to grit our teeth and eat
up all the six hundred page books they were about to give us. Then he took as
along to court to watch the whole thing play out in practice.
From the viewing gallery we got an hour long snapshot of a
real live case. A woman from a high rise block in South
London somewhere had arrived home with four heavy bags of
shopping. The front door to her block was spring loaded so she used her back to
push it open. This nearly worked, but not quite. It turned out that the door
springs were stronger than the woman. The result? The shopping bearing woman
was propelled outwards and onto a hard landing on the pavement. One broken arm
and a law suit. She was suing the local council for putting too strong springs
onto the front door of the block. The local council was defending itself by
saying that the woman should have put her shopping bags down before negotiating
the door. There were tables brim full of lawyers and paper. I asked a few
questions. How long was the case going to last? Three days. How much would that
cost? About £60,000. What would she get if she won? About £5000.
And there it was. The racket to end all rackets. All of the
bills for the lawyers representing the woman were being settled by legal aid.
As in the tax payer. All of the bills for the lawyers representing the Council
were being paid from Council funds. As in the tax payer. So the whole £60,000
performance was being paid for by the tax payer in order to decide whether or
not the very same tax payer should shell out a further £5000 for a broken arm.
Win, lose or draw, and the lawyers were guaranteed to get
paid a living fortune. It seemed to me that the whole thing was a carefully
choreographed charade designed to allow a few gilded individuals to get their
hands on a fortune of tax payer’s cash. The law of the land was carefully set
up to make sure that only fully qualified lawyers and judges were allowed to
partake in the decision as to whether the woman form the tower block was to get
her £5000. It was in fact a complete and utter racket. A monopoly of the very
worst kind and on the train back to Cambridge
I decided I wanted no part of it.
The next day I ended my three day legal career and switched
to History.
I never cease to be amazed at how the monopoly of the legal
world seems to avoid any great attention. Over recent years bankers,
politicians, policemen and TV companies have all taken it in turns to be
roasted on the spit while lawyers have been given a free pass. How can it be that
the legal profession is allowed to operate in its own cosy cartel world with
such impunity? Well I discovered the answer to that one way back in 1980. Ever
since Charles 1 had his head removed and the House of Commons took control of
the reins of power, over half of the MPs on the green benches have always been
lawyers. They look after their own. Oh do they ever look after their own.
The difference now is that the bills we are all expected to
pick up are a whole lot bigger than the £60,000 we shelled out in order to
decide whether a broken arm was worth compensation.
For the last couple of weeks the HSBC tax dodging story has
raged across the airwaves. Every man and his dog from all corners of the land
are disgusted and appalled. How can it be!!!!
There is general agreement that about £80 billion’s worth of
tax is being dodged. And there is a general agreement that everything possible
should be done to collect the £80 billion of dodged tax.
So fair enough. Why the hell isn’t it collected? After all
£80 billion is plenty enough to get rid of Britain ’s structural deficit in one
fell swoop. It seems to me that the truth is to be found when you listen to
what the managers of HMRC have to say on the matter. If they decide to roll up
their sleeves and set out on the task of getting the likes of Amazon and
Starbucks to cough up their dues, they know exactly what will happen. Basically
the mega corporations can afford way better lawyers than the Government can afford. It
means that HMRC will be tied up in court for years on end and all the while their
legal bills will go up and up and up. And in the end, the £2000 an hour lawyers representing
the corporations will almost certainly win the day and the bosses at HMRC will
have to try and explain to the hard boys in the Treasury why they have shelled
out millions to lawyers and still got their arses kicked out of court. The
corporations don’t care how much they pay out because it will always be a
fraction of what their tax bill would be should they ever be forced to settle
it in full.
So the easiest option for the managers at HMRC is to leave
things be. In the end human nature will always win the day. If you have a
career and a heavy London
mortage, are you really going to put it all at risk by signing off on £20
million’s worth of legal fees to take on Amazon and lose? And then get yourself fired for your
troubles?
Of course not.
And they don’t. They chase broke little businesses instead
whose overdrafts won’t run to lawyers. The playground is never, ever level. If
HMRC take on Amazon, the company will always have more and better lawyers and
therefore win the day in court. On the flip side, when HMRC takes on a lad with
a painting and decorating business in Barnsley ,
the exact opposite happens. He cannot afford to partake in the lawyer arms race
and so he throws in the towel and either pays up what they say he owes or he goes
bust.
So the bills the dodged £80 billion should settle remain
unpaid. So who pays them? We do of course. How much? It’s about £1500 a year
for every man, woman and child in Britain . All to allow a handful of
uber lawyers to stay among the ranks of the super rich.
Cheers for that.
Right now there is a provision in the NHS accounts for £22
billion to be paid out in compensation. This is the hard cash end of the story
that starts with all of those ambulance chaser adverts on the radio. As a rule
of thumb the ambulance chases rake in 40% of anything they can shake the NHS down
for.
As in £8.8 billion.
Gee Wizz.
That’s about 10% of the annual NHS budget. I wouldn’t be surprised
if we are paying more on lawyers than we pay on nurses. Obviously if someone
gets screwed by lousy treatment in hospital then it is only fair that they are
compensated for it. But do we really have to gift £8.8 million to lawyers to
make it happen? Well so long as those green benches of the House of Commons are
home to hundreds of lawyers I think it is pretty clear that the gravy train
will continue to roll smoothly down the tracks.
There really is no racket like the law. Maybe I should have
stayed on the train myself all those years ago. I don’t suppose I would have
been bouncing around in a £300 Volvo estate had I stayed the course.
What the hell. Sinatra time. Regrets? I’ve had a few. But
then again…..!!