The government’s Financial Services Compensation Scheme (FSCS)
has finally agreed to pay out compensation to a group of workers
suffering from asbestos related
diseases, following pressure from law firm Field Fisher Waterhouse
LLP, amongst others.
For over one and a half years, successful claimants were not
granted their compensation due to a dispute over who should pay.
Rodney Nelson-Jones, Head of the
Asbestos Claims Department at
Field Fisher Waterhouse, represented one of the claimants, John
Warburton.
Mr Warburton worked as a lagger for two years for Cape
Darlington Ltd, formerly known as Darlington Insulation Company
Ltd, which is one of the largest employers to have used asbestos.
Numerous workers were exposed to substantial quantities of asbestos
in the 1950s and 1960s.
In January 2006, Cape Darlington Ltd was put into administration
and ceased to pay damages, and their insurers, Chester Street were
also insolvent. This should have meant that 90% of damages awarded
against Cape Darlington were paid for by the FSCS.
But the FSCS refused to pay due to complicated indemnity
arrangements between Cape Darlington and William Baird Plc. In the
past, workers suffering from asbestos
related diseases received compensation from William Baird Plc.
But the company refused to make any further payments, on the
grounds that the amount of compensation they agreed to pay out had
been reached.
For twenty months, successful claimants were not granted their
compensation whilst actuaries investigated whether the cap under
William Baird’s Indemnity Agreement had in fact been reached. In
July this year, Rodney Nelson-Jones
wrote to Peter Hain MP, the Secretary of State for the Department
for Work and Pensions, to draw attention to the case.
In September, the FSCS finally accepted that both the insurer
and the company are insolvent, and agreed to pay out 90% of the
value of the successful claims against Cape Darlington.
Rodney Nelson-Jones said: “I am
glad that following pressure from myself and others, this long 20
month stand-off has finally been resolved and that asbestos disease
sufferers and their families can finally be paid the compensation
against Cape Darlington that is due to them.”
This latest decision follows a lengthy and consistent campaign
by the Asbestos Claims Department at Field
Fisher Waterhouse. The firm has been working with the
Department for Work and Pensions, the Association of Personal Injury Lawyers
(APIL) amongst others.
For further information, please contact Rodney Nelson-Jones on 020 7861 4000.