Legal News

The High Court has allowed for a claimant to withdraw a settlement made prior to the announcement that the discount rate applied to personal injury pay-outs was to change, which could allow for a more lucrative settlement.

In late February, Liz Truss, the Lord Chancellor, announced that the government would be cutting the “Ogden” discount rate from 2.5% to -0.75%, which was argued to likely result in a significant increase in the value of compensation claims awarded to successful personal injury claimants.

The claimant in this case was injured in a road traffic accident and subsequently received negligent treatment in 2008. She had offered to settle her claim for £340,000 under Part 36 of the Civil Procedural Rules, but sought to withdraw this offer in light of the Lord Chancellor’s changes to the discount rate. The claimant had failed to serve a notice of withdrawal that was in accordance with Civil Procedural Rule 6.20. However, she successfully argued that the court had a general power to rectify an error of procedure, under CPR 3.10, where the error did not invalidate the steps taken.

The court found it to be clear that notice was received by the defendants and that they were given all necessary information. Master Yaxall further commented:

“It would not be just or consistent with the overriding objective that a technical breach of the rules should impede the proper assessment of damages in this case.”

Duncan Lewis Solicitors recently discussed the first personal injury settlement case to apply the new discount rate, which saw a 10-year-old school girl receive a £9.3m settlement. This was an increase from the £3.8m settlement the claimant would have received were it not for the Ministry of Justice’s pivotal changes.

Following this latest decision, in the case of Thompson v Reeve, it is likely we will again see a significant increase in a claimant’s personal injury claim, which was valued at around £347,000 prior to the new discount rate.

Critics say the discount rate changes will be to the detriment of insurance companies across the UK, with the Association of British Insurers reporting that some of its members have increased premiums in response. However, the Association of Personal Injury Lawyers argues that the change is “long overdue” and allows for claimants to finally seek the appropriate compensation for life-altering injuries.

Alla Kingswood, Personal Injury and Clinical Negligence solicitor at Duncan Lewis welcomes the change, she commented:

“The Government’s decision to reduce the discount rate means that claimants’ personal injury compensation payments will rise. Claimants, especially those with life-threatening injuries, are hugely dependent on these lump sum awards to enable them to meet their future financial expenses such as future treatments, care and medication. Now that the discount rate has been altered to reflect the returns injured parties will receive, claimants are unlikely to face a shortfall when using these payments to fund crucial treatments."

Alla Kingswood is a Solicitor in the Personal Injury and Clinical Negligence department at Duncan Lewis Solicitors and represents Claimants who have been victims of catastrophic, life-changing injuries such as brain injuries, crush injuries, serious orthopaedic injuries, amputations or spinal injuries.

Duncan Lewis Personal Injury Solicitors

Duncan Lewis Personal Injury Solicitors have extensive experience representing clients who have sustained injuries as a result of accidents. Duncan Lewis’ no win no fee personal injury solicitors are proud of their reputation for being caring and considerate and for working tirelessly to achieve the best possible outcome for their clients. Personal injury claimants usually have three years from the date of the injury to make a claim for accident compensation. Because of the limitation period for personal injury claims, it is important to seek legal advice from Duncan Lewis personal injury solicitors as soon as possible if you are injured in an accident. Family members can call Duncan Lewis for advice on making a claim if someone close to you has been injured and is still recovering in hospital.

For expert legal advice call Duncan Lewis Personal Injury solicitors on 0333 772 0409.