The Accident Group was a Manchester based personal injury claims management company that went bankrupt in May 2003. The firm gained notoriety for informing its 2,400 workers of their redundancy by text message, which, according to BBC reports, led to the firm's offices being emptied of computer equipment by disgruntled staff.

Formation, business model

Mark Campion Langford (May 29 1964 - April 9 2007) trained to become a solicitor. However, after failing to qualify he started Motorlaw before launching The Accident Group in 1999, and placed Gary Hoddes as Managing Director. Hoddes then went on to place members of his own family in Director positions, including Phil Hoddes (brother) [Sales Director], Jackie Brennan (sister) [Operations], Mike Boxen, Paul Boxen and Maria Berry.

Accident Group was a middleman, referring claims to a "panel" of 700 solicitors. The group was not a legal firm and was not a member of the Law Society, which regulates solicitors.

Administration

In light of a change in the law, the model on which the Accident Group operated began to fail. Legal costs undertaken by the claimant were moved from claimable against the other party, to payable by the claimant. This meant that the amount of money paid to claimants dramatically fell, whilst the money payable to solicitors undertaking the claims were too high.

Secondly, the number of false claims filed by claimants began to cause concern to investors. A BBC One program, The Man That Made Accidents Happen, interviewed the former Accident Group special investigator Paul Stott. Mr Stott focused on the practice of multiple claims - the practice in which a single claimant would sometimes make claims for many different accidents. He also found that some salespeople also made many multiple claims for themselves. Stott claimed that one couple who both worked for the company and had made 33 claims for themselves, of which nine were accepted by the company, and made a further 40 claims for people living in their street, and another 68 claims on two addresses nearby where their friends lived: of the total, 24 were accepted by the Accident Group. Stott said that many claims went through, defeating the checking procedures the company had put into place, saying: "Working on the figures that I had to hand at the time, of the totally ridiculous claims, 30 per cent went through.

After administrators were called in, notoriously most of the firm's 2,400 employees were dismissed via SMS text message sent by Langford which read:

Parent group Amulet Group, which also eventually went bankrupt, said its subsidiary The Accident Group had to cease trading because it could not sustain its "continual battles with the insurance industry" and after "the sudden failure of a banking partner to support the company". The administrators Price Waterhouse Coopers, later blamed Accident Group's "lower than expected claims success rate" for the financial difficulties, which they say "resulted in increased insurance premiums on new business and retrospective claims from the underwriters.".

Staff, who were not allowed to join an union, and who didn't receive their final salaries or a follow-up email (as promised in the famous text message), ransacked the Liverpool office and carried off computers and other equipment.

Death of Mark Langford

In June 2000, Langford was convicted of careless driving after a 73 year old War Hero pensioner, William Thornley, was knocked down and killed by Langford's Ferrari 355 F1 Spider close to Old Trafford football stadium in November 1998. Langford had to be cut free from the wreckage of the convertible, and sustained a broken thumb and finger. He was, however, found not guilty of causing death by dangerous driving, despite only having his license back for six months from a previous drunk driving ban.

Langford fled to Spain after the company's collapse. Although having an estimated fortune of between £40M and £75M, Langford had previously been served with a High Court bankruptcy writ aboard his £1.5million 80ft yacht Mermaid’s Whisper in Puerto Banus. Langford had adjourned the hearing until 1 May 2007 after claiming he was suffering from “severe mental illness leading to manic depression." In his absence he was being sought by HM Customs and Excise for £4.1 million in unpaid taxes, and the Department of Trade and Industry was seeking to disqualify him as a company director.

Langford died in an accident when his Opel Corsa left the road in an accident in Marbella, Spain on 9 April, 2007. He and his wife were said to be separated at the time of his death at the wheel of the rented Opel Corsa, had had his assets frozen by liquidators; and had sold both his Marbella home, yacht; and had his North Rode, Cheshire home on the market for £3.5M. To this day, millions remain unaccounted for, and investigations continue.

References