A summary of key developments including the discount rate review, raising the small claims limit, review of fixed recoverable costs, proposals for transforming the justice system, justice reforms in Scotland, decline of noise-induced hearing loss workplace claims, developments in mesothelioma, plans to delete company records and the Third Parties (Rights against Insurers) Act 2010.
14/12/2016
A summary of key developments including the discount rate review, raising the small claims limit, review of fixed recoverable costs, proposals for transforming the justice system, justice reforms in Scotland, decline of noise-induced hearing loss workplace claims, developments in mesothelioma, plans to delete company records and the Third Parties (Rights against Insurers) Act 2010.
Discount rate review: decision expected January 2017
The Ministry of Justice will announce by the end of January 2017 the results on whether to change the discount rate. The decision follows the legal action taken by the Association of Personal Injury Lawyers (APIL) challenging the delay in providing a conclusion to the review. Kennedys has urged the government to ensure its decision reflects its own research that personal injury claimants do not simply put their damages into low-risk investments. The earlier research also recognised that even a small reduction in the rate would have a significant impact on public bodies and insurers.
Related item: Kennedys urges government to reflect reality of investment in discount rate decision
Contact: Christopher Malla
Reforming the claims process: small claims limit
The Ministry of Justice has published its long anticipated consultation into reforming whiplash claims, which goes beyond the motor space with the proposal to raise the small claims limit for all personal injury claims to £5,000. While the measures are aimed at tackling whiplash claims, the government is also looking to gather views that affect the wider personal injury space including early notification, rehabilitation and recoverability of disbursement. The consultation closes on 6 January 2016.
Contact: Deborah Newberry
Related item: Whiplash consultation: full steam ahead
Lord Justice Jackson to review extension of fixed recoverable costs
HM Judiciary has announced that Lord Justice Jackson will lead a review of fixed recoverable costs. The review’s recommendations will help to inform a government public consultation on reforms to extend fixed recoverable costs to further areas of civil litigation. The terms of reference include consideration of the types and areas of litigation in which such costs should be extended, and the value of claims to which such a regime should apply. A consultation on the review is open until 16 January 2017. Jackson LJ is to submit his report by 31 July 2017.
Contact: Martin Cox
Related items:
Transforming the justice system
The Ministry of Justice has published “Transforming our Justice System”, a paper proposing approximately £1 billion of reforms to the justice system to meet the aim of automating and digitising the entire process of civil money claims in the civil courts by 2020. The proposals seek to speed up resolution by replacing paper and post with digital working and to look at options to extend fixed recoverable costs much more widely. The consultation closed on 27 October 2016.
Contact: David Bywater
Civil courts structure review: final report published
The final report of Lord Justice Briggs’ Civil Courts Structure Review was published on 27 July 2016. His key recommendation is the creation of a three-stage online court, intended to deal with all claims up to £25,000. Briggs LJ told the Chartered Institute of Arbitrators’ mediation symposium that his recommendation for the online court will bring alternative dispute resolution (ADR) ‘into the mainstream’ of civil dispute resolution – removing the ‘A’ from ‘ADR’.
Contact: Mark Burton
Related item: Briggs review of civil courts structure (PDF)
Scotland: pre-action protocol becomes compulsory
The compulsory pre-action protocol became compulsory in Scotland on 28 November 2016. The protocol will replace the voluntary version and apply to most pre-litigation personal injury claims up to the value of £25,000. Earlier on 6 September 2016, the Scottish government announced its Programme for Government 2016-17. Proposed legislation includes the Expenses and Funding of Civil Litigation Bill, which will include provisions to introduce sliding caps for success fees in personal injury and other civil actions, allow damages-based agreements and introduce qualified one-way costs shifting for personal injury cases and appeals.
Contact: Rory Jackson
Noise-induced hearing loss (NIHL): decline in cases over last decade
The latest estimates published by the Health and Safety Executive state that an estimated 20,000 people working during last year suffered from NIHL. Overall, the cases of NIHL claims has declined over the past decade. 100 new claims were submitted to the Industrial Injuries Disablement Benefit Scheme, compared to 130 and 120 in 2014 and 2013, respectively. The findings are based on data from the Labour Force Survey. Other estimates from the Survey show the total number of cases of work related stress, depression or anxiety in 2015/16 was 488,000 cases, a prevalence rate of 1,510 per 1000,000 workers. The estimated number and rate have remained broadly flat for more than a decade.
Contact: Cameron Clark
Mesothelioma: multiple drugs trials
The Combinations Alliance has announced that is exploring new combinations of multiple drugs for mesothelioma. The Alliance, in conjunction with Cancer Research UK, brings together UK researchers and drug companies from around the world to explore new combinations of cancer drugs. The Alliance aims to increase treatment options for patients as well as tackle drug resistance.
Meanwhile, the government has awarded £379,000 funding to Mesothelioma UK to establish a specialist military information, advice and support service for military personnel and veterans who have been affected by mesothelioma.
Contact: Philippa Craven
Companies House: U-turn on plans to delete records
The government announced on 29 November 2016 that it would maintain the status quo for the length of time public records are retained for dissolved companies at Companies House. It had been proposed that the length of time would be reduced from 20 to six years. There was concern that this would cause difficulties for insurers and claimants alike, particularly in occupational disease and fraud cases, where historic company records can be a vital part of the investigations in long tail claims.
Contact: Lorna Henderson
Third Parties (Rights against Insurers) Act 2010
The Third Parties (Rights against Insurers) Act 2010 came into force on 1 August 2016. The provisions of the Act make it easier for a third party to bring a claim against an insurer when the insured has become insolvent. The key change is that the third party will only have to issue one set of proceedings, against the insurer. It will then ask the court to make declarations both on the insured’s liability to the third party and the insurer’s liability under the policy. The Act replaces the Third Parties (Rights against Insurers) Act 1930.
Contact: Michael Hogg
Related item: More than just a number – the 1930 Act’s makeover is finally coming into force
