Arthritis law suit battle setback Aug 10 2005

Arthritis law suit battle setback Aug 10 2005 By Deborah James, Daily Post Staff - Liverpool Daily Post

A GROUP of Merseyside arthritis sufferers has been refused public funding to fight a landmark legal case against the makers of the "miracle" arthritis drug Vioxx.

The Legal Services Commission has rejected claims for legal aid by three British solicitors' firms preparing to lodge a class action against US drugs giant Merck, the Daily Post can reveal.

The three, including Liverpool medical negligence experts Goodmans, are jointly fighting for compensation for a potential 1,000 British people who suffered heart attacks or strokes after taking Vioxx.

Merck withdrew the drug, used to treat painful conditions like rheumatoid and osteo-arthritis, last September after a study found it could increase the risk of cardio-vascular problems.

A total of around 400,000 people were prescribed the drug in the UK, and thousands more worldwide. Hundreds of cases have already been lodged in the US, where it is estimated the company's litigation bill could reach $18bn (£10bn).

Last night, solicitor Ian Cohen, who is leading the case for Goodmans' cohort of up to 200 Merseyside clients, said he was disappointed with the LSC decision.

But he said he was confident the case could still be fought on UK soil.

He confirmed Goodmans had lodged a joint appeal for funding from the LSC, with London firms Irwin Mitchell and Leigh Day, which will be heard in the autumn.

In the meantime, all three firms are now in negotiations with private "after the event" insurers to seek alternative finance for the group action, should the legal aid avenue fail.

Mr Cohen, who successfully fought a legal aid-funded compensation case for the parents of children involved in the Alder Hey scandal, said: "We are quite comfortable with our position and we are confident that funding will be in place and we will be pursuing a class action in the UK."

He added: "We understand the LSC's decision as they only have a limited budget, and they have been hit before by cases that have failed.

"The danger is that legitimate cases like this may be refused."

A separate group of Merseysiders, represented by Allerton firm MSB, have already by-passed the legal aid route and are preparing to fight a series of privately-financed cases directly in the US courts.

However, Mr Cohen said he was not prepared to go down that route.

He said only up to 30% of his potential Vioxx claimants could be classed as normally eligible for legal aid, and Goodmans would in any case have to find private backing for the remaining 60%.

A test group of 18 claims for up to £2,000 each in legal aid, lodged by Goodmans, has so far been rejected by the LSC.

A Legal Services Commission spokesman said: "Legal aid has been refused for claimants who wished to bring an action against the pharmaceutical company, Merck, in relation to its drug, Vioxx.

"The Legal Services Commission cannot go into the detail of why legal aid was refused, as this may affect the chances of the case being taken forward with private funding.

"An appeal against our decision will be heard in the autumn.

"The LSC has a limited budget and we must ensure that we make best use of taxpayers' money by only providing funding to cases that cannot proceed without it.

"For example, the case that was brought against Alder Hey Hospital for retaining body parts of children without their parents' consent..

"As the Vioxx case concerns a drug that has been withdrawn, it is highly likely that private funding, either through insurance or a 'no win, no fee' agreement, can be obtained.

"Also, there is very similar litigation currently ongoing in America. If this case is successful, the likelihood of obtaining private funding for a case in Britain is substantially increased."