Keddies has paid $75,000 to 95-year-old Margaret Shuetrim, who alleged that the firm overcharged her by $50,000 when it represented her in a personal injury claim.

Shuetrim was was hit by a car when crossing the road in Petersham back in 2003. She instructed Keddies to represent her in - what at first glance - seems like a fairly straight-forward personal injury claim. According to a report in the Sydney Morning Herald, the driver of the car admitted responsibility and the claim settled out of court for $150,000. So she was surprised when a Keddies' bill for $66,747 in costs and disbursements landed on her door mat.

    Shuetrim receiving the bill - how it might have looked

Shuetrim - who claimed that the bill should have been in the region of $14,400 - described the amount as "grossly excessive." She said she suffered "disappointment, anxiety and distress" as a result of having to pay out such a hefty whack of her compensation. The hearing was scheduled for this week but a settlement was reached before any details of the spat were aired in public, with Keddies agreeing to stump up $75,000 plus costs.

This is just the latest in a line of bad headlines for the embattled firm, which recently merged with Slater & Gordon. Founder Russell Keddie, plus two other colleagues, has been facing professional disciplinary proceedings for alleged over-charging. And another colleague was imprisoned for assaulting a police officer. Slaters must be delighted...

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