Newsnight - 10 & 11 May 2004, and 20 April 2006

10 & 11 May 2004
On 10 May Newsnight did a feature on the administration of compensation under the vCJD Compensation Scheme, following which the Trustees made a complaint of unfairness to Ofcom.

Ofcom's adjudication on this complaint can be found at www.ofcom.org.uk.

Ofcom has not upheld the complaint of unfair treatment in relation to this broadcast. This is on the basis that it considered that Charles Russell and the Trust had been given an appropriate opportunity to respond as a result of a telephone call from a journalist three weeks before transmission, of being provided with a transcript of the programme on the morning of the broadcast, and of their then declining an opportunity to be interviewed; and because the Trustees were already aware of concerns among families of earlier Victims, and because a summary of their written statement had been read out on the programme.

Ofcom also found that the programme had been presented in a fair and appropriate manner and tone because:

• "It was clear from the small number of cases examined that it was only a limited number of individuals who were openly critical of the administration of the Scheme… It was also clear that the Trust had compensated a number of families."
  
  
• The Department of Health had made it clear that it was hoping to meet with the Trust to discuss concerns about the high level of costs, and that by the time of the broadcast a formal request for a meeting with the Secretary of State had not been made.
  
  
• The allegations made in the programme were clearly attributed to "a limited number of cases where, in the personal opinion of those featured, the Trust had not effectively compensated them. The programme did not present this as evidence that it was established as fact that the Trust simply is not working".
  
  
• "It was evident that there was concern at the level of fees involved in administering the Scheme but this was balanced by the programme making clear the complainant's view that the complexity of the Trust Deed had contributed to costs of implementing the Scheme and that the costs were not disproportionate."

No legal costs have been paid or will be paid by the Trust as a result of the complaint to Ofcom having been made.

20 April 2006
On 20 April 2006 Newsnight did a further feature on the administration of the vCJD Compensation Scheme. The BBC broadcast featured various criticisms levelled at Charles Russell by certain families.

One criticism that Charles Russell does accept is that a numbered list of victims' names in a Schedule to the Amended Trust Deed was included on the vCJD website over the weekend of 11-13 March 2006 when the website was being updated. As soon as this error was discovered, Charles Russell removed the list and apologised to the families and to the Trustees. Their apology was repeated in the Newsnight broadcast of 20 April 2006.

The Trustees and Charles Russell agree that the costs of the Scheme have indeed been substantial, and much higher than was originally anticipated by the parties to the settlement. However, they reject the other criticisms which have been made about costs. Since the Trust was set up, £20million in compensation has been paid to families, and costs have totalled £6million of which £3.2million has been paid to Charles Russell. Payments made to families have not been reduced because of the level of legal costs.

It has been suggested that, following the earlier Newsnight broadcast on 10 May 2004, Charles Russell sent a misleading letter to families on the subject of whether the Department of Health had raised concerns about costs and of whether the Trustees or the Secretary of State had requested a meeting between the Secretary of State and Chairman of the Trust. The suggestion that the letter was misleading is denied by Charles Russell.

At their meeting on 7 April 2006, the Trustees discussed their ongoing legal representation including whether they should invite tenders from other solicitors to act on their behalf. They decided that they wished Charles Russell to continue acting on their behalf because of the excellent service which they had provided since they were first appointed (apart from the mis-posting error on the vCJD website), and because this would enable the Trustees to complete the progress which they have been making in deciding claims for particular emotional and financial hardship.

Before the broadcast by the BBC, the Trustees had suggested a meeting between the Trustees and representatives of the Human BSE Foundation and Claimant solicitors to discuss any continuing concerns. This is in the process of being arranged. It is intended that a normal Trustees' meeting should take place on the same day. Also before the broadcast by the BBC Sir Robert Owen, as Chairman of the Trustees, had offered a further meeting with the Secretary of State.

Updates in relation to the numbers of claims considered by the Trustees are available from the Abbreviated Minutes after each meeting (click link). At present, there are 7 claims for £5,000 for having suffered Psychiatric Injury, 17 claims for Particular Emotional Hardship and 1 claim for Particular Financial Hardship to be considered at the next meeting. Charles Russell is also working on 4 new Main Applications and 4 cases with outstanding issues, in conjunction with solicitors representing the families. It is hoped that these claims will be considered at the next meeting, assuming the relevant information is provided.


Western Morning News

Following a complaint to the Western Morning News concerning a defamatory article published on 13 May 2004, the newspaper published an apology (see below) to the Trustees and to Charles Russell, Solicitors, for the errors giving rise to the complaint. The article wrongly suggested that Charles Russell, Solicitors, were cashing in by delaying compensation promised to bereaved families and that compensation claims had been made which had not even received a reply. The newspaper is making an appropriate payment of damages which the Trustees and Charles Russell have requested be donated to two vCJD charities. The newspaper is also paying the legal costs arising out of the complaint.

The apology has been anonymised, but otherwise reads as follows:

"AN APOLOGY TO CHARLES RUSSELL, SOLICITORS

On May 13, 2004 we published an article headed "Mother of vCJD victim hits out at lawyers", in which we reported the complaints of [a victim's mother] about the way in which the vCJD compensation scheme is being administered.

[Her] daughter died of vCJD in January 2000.

The article purported to report [the victim's mother's] criticisms of the vCJD Trust and of Charles Russell, the London-based firm of solicitors administering the trust.

The article wrongly accused Charles Russell, acting for the vCJD Trust, of cashing in by delaying compensation promised to bereaved families.

We also incorrectly asserted that [the victim's mother] had made compensation claims that had not even received a reply from Charles Russell. In fact, [the victim's mother] was not referring to the basic compensation payment, which she had already received, but to a discretionary payment for which her solicitors have yet to finalise the paperwork.

The trustees and their solicitors have also asked us to point out that they have taken a proactive "hands-on" approach in dealing with claims quickly, efficiently and proportionately.

We apologise to them unreservedly for the errors in our report, and have made an appropriate payment to a vCJD charity and paid the legal costs arising out of this complaint."

Mail on Sunday Article of 1 January 2006

On 1st January 2006, the Mail on Sunday published an article about the vCJD Compensation Scheme. The Trustees have submitted a short response to the article, which can be seen by clicking here.