Impact of Court of Appeal Judgement on Compensation Claims
The Court of Appeal yesterday handed down judgment in favour of the claimants in the case of Thompstone and others v Tameside NHS Trust and others. The case is a very important one.
The NHS were appealing judgments in the High Court which found that idexing of awards for the future cost of care and case management should be to relevant to wage inflation rather than the RPI.
Going forward, awards for future loss will be linked to the likely growth in the relevant wage inflation rather than RPI. This will lead to larger but more realistic awards.
Adrian Desmond of law firm Boyes Turner said: "There will be an additional cost to insurance companies and the NHS as a result of these decisions, but the Cout of Appeal made it clear that the stance taken by defendants could not be justified.
A claimant should be compensated according to likely actual future care expenses rather than the RPI which is not a relevant or a fair measure. This judgment will not only give a fairer deal to those seriously disabled as a result of negligence but also make periodical payments (previously called structured settlements) a more attractive form of compensation - something that nearly all commentators want, claimant and defendant alike.
Sadly however it seems that the NHS intends to appeal this judgment despite the Court of Appeal judges suggesting that they should not."
The press association reported: 'Lord Justice Waller, introducing the judgment of the court, said damages were mainly agreed but the hospitals were challenging whether compensation should be paid by Periodical Payment Orders linked to wage inflation rather than the cost-of-living index.
He said: "This court is seeking to provide an answer which, on the information it has at the trial, will, through the use of a PPO, best provide the claimant with 100% compensation."
The judge said if the main element of the care costs was wage inflation, and the RPI was not a suitable guide, then the courts should try to find "a more suitable index or measure".
After reviewing all the methods of calculating future increases in care costs, the judges opted for the Annual Survey of Hours and Earnings - ASHE 6115 - which relates to care workers.
Lord Justice Waller said: "We hope that as a result of these proceedings, the National Health Service and other defendants in proceedings that involve catastrophic injury, will now accept that the appropriateness of indexation on the basis of ASHE 6115 has been established..."
Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.
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