A Co Offaly factory worker has won his High Court challenge to the policy of the Personal Injuries Assessment Board (PIAB) to deal directly with clients and not their solicitors.
Mr Justice McMenamin ruled in the High Court that the Personal Injuries Assessment Board Act of 2003 did not contain a specific clause to allow the PIAB to refuse to deal with solicitors.
He said the right to legal representation and the lawyer-client relationship was established for the common good. The situation helped to guarantee equality in litigation for all, he said.
PIAB chief executive Ms Patricia Byron said the decision would only affect a "tiny minority" of cases. She said it would comply with the ruling and deal with solicitors if claimants choose to appoint them.
However, the PIAB will not pay solicitors' costs. "Claimants have the choice of dealing directly with the PIAB or engaging a solicitor and paying the costs themselves," Ms Byron said.
Ms Byron said the decision would lead to the "nonsense" situation where claimants, if they chose to appoint a legal advisor, would not be allowed to contact the PIAB personally to check on the status of their claim. Every time they wanted any details about their case, they would have to go through their solicitors and rack up even higher bills.
She said the board would, over the next few days, consider appealing today's decision to the Supreme Court. "If that isn't an option, we would definitely be seeking a change in the legislation," she said.
The challenge to the PIAB policy was brought by Mr Declan O'Brien, a meat-plant boner from Summer Road, Tullamore, Co Offaly. It was also supported by the Law Society of Ireland.
Mr O'Brien had brought an action for damages arising from injuries he allegedly sustained when a meat carcass fell on his back while he was deboning meat.
He claimed his constitutional right to be represented by a solicitor was being breached by the PIAB because it was seeking to deal directly with him rather than conduct dealings through his authorised solicitor.
The Law Society argued that the PIAB policy damaged the ability of solicitors to represent their clients.
The decision is a serious setback to the Government, which established the PIAB in April 2004 with the intention of speeding up personal injuries cases and lowering the costs involved.
The Minister for Enterprise, Trade and Employment, Mr Martin, said in a statement he would examine the judgment "in detail". He insisted he "remains committed" to reducing the costs and time involved in making insurance claims.
"We must never lose sight of the position of the genuine injured party who research shows waits six times longer in this country than in England to receive compensation to which they are entitled. That adversarial process also adds on average up to 50 per cent to every euro paid in compensation," he said.
"The overhead cost and unnecessary delay are the two targets of the PIAB, resolution of which will represent a win-win solution for both claimants and premium paying policy-holders, who ultimately bear the costs."
The PIAB adjudicates on cases where liability is not disputed. Should either party be unhappy with the ruling, they may then go to court. The Government hopes the board will ultimately process around 90 per cent of all personal injury cases.
The board began processing workplace accident cases in June, and all other personal injury claims in July. Around 12,000 personal injuries summonses are issued each year in the High Court.
The PIAB does not deal with medical negligence actions, which are overseen by the State Claims Agency.
