Problem: Culpability for personal injury on construction work site
My carpentry contracting company is currently working as a sub-sub-contractor on a contract in Leicester, being employed by another [larger] carpentry contractor who in turn is employed by the main contractor.
A few months ago the company received a letter from a firm of solicitors. The letter stated that it was representing a client who had been an operative working on the site but employed by a decorating contracting. It said that the operative had sustained an eye injury, caused by the end of a metal wood clamp which supposedly was put there by my company. I wrote back saying that my company knew nothing of the injury and that they should direct any further letters to the main contractor.
Over the course of the next few months, I received a few more letters but ignored them. I then received a Claim Form which named my company as the Third Defendant (the other two defendants were the other carpentry contractor and the main contractor). The claim was not quantified.
I initially also ignored the Claim Form (assuming that it was nothing to do with us), but having recently received copies of the other defendants’ defences (all of which blame my company for the injury), I am now getting concerned that I should be doing something. Any advice?
Response: Take action fast on construction personal injury claims
This is potentially a very serious matter and it is imperative that you act quickly in order to mitigate your exposure to a considerable amount of legal costs.
First and foremost, and regardless of whether you are liable or not, you must contact your Public Liability insurer/broker and inform them of the matter, although you may have left it too late for them to indemnify you. If your insurer refuses to indemnify you, you will then need to instruct a solicitor.
The problem is not necessarily the level of the damages that you may be liable for (which should be below £5,000), but the level of costs that you may be liable for now and in the future. Presently, this could easily be in excess of two times the level of the damages, and even greater if you allow the claim to rubble on to a hearing.
If the Claimant has agreed to a success fee, you are fortunate that there were changes made to success fees in 2013. A success fee acknowledges the risk to the solicitor in taking on a ‘no win no fee’ case, but the agreement (which is now known as a damages-based agreement), will only allow the success fee to be taken from the damages recovered (up to 25%). Prior to the rule changes in 2013, success fees (then known as conditional fee agreements), could be up to 100% of the costs and claimed back from the losing party.
© Michael Gerard 2017
The advice provided is intended to be of a general guide only and should not be viewed as providing a definitive legal analysis.