A law firm in Greater Manchester has repaid £113,000 to insurance giant
AXA for incorrectly inflating legal costs in dozens of personal injury cases.
According to a report by the Manchester Evening News, Asons admitted that it “falsely and systematically” exaggerated its claim for costs in 65 personal injury cases that were settled between September 2013 and December 2014.
Asons has agreed to pay AXA about £70,000 in damages and interest and more than £40,000 in legal costs, the report said.
“This was a systematic attempt to secure funds that Asons ought to have known they were not entitled to,” AXA claims manager Gian Luigi Di Franco was quoted as saying in a report by the Law Gazette.
He went on saying: “We hope and expect that this victory sends a strong message to those in the claimant lawyer fraternity who would undermine the reputation of and trust in their profession purely in the pursuit of money.”
The issue first surfaced in July 2015 following a case in the Manchester County Court. Asons claimed that the fee earner working the case had more than six years of litigation experience.
However, the fee earner actually had only less than two years of experience during that time. Asons said it was only an administrative error but the company was sanctioned by the court for misconduct. This prompted AXA to review other cost claims involving the law firm.
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