GENERAL DAMAGES
PAIN, SUFFERING AND LOSS OF AMENITY, FUTURE LOSS OF EARNINGS AND FUTURE COST OF MEDICAL CARE
General damages
Not capable of precise calculation
Non-pecuniary loss
Pain and suffering
Loss of amenity
Smith v Manchester
Loss of congenial employment
Future pecuniary loss
Financial losses post trial which claimant will continue to suffer in the future
E.g. loss of earnings/cost of care
Should NOT include
Future earnings
Future costs of medical care
Loss of congenial employment
Be aware of contributory negligence
Main heads of general damages (go through each in turn if relevant)
Step 1: Pain, suffering and loss of amenity
P&S subjective test so claimant cannot claim for when unconscious – Wise v Kaye [1962]
Loss of amenity (loss of enjoyment of life) = objective test – but subjective in that the court looks at the claimant’s former lifestyle – Scott v Shephard
Considers
Physical
Mental
Accident AND surgery
Past, present and future
Awareness
Enhanced if aware of ‘loss of expectation of life’
Effect on claimant’s lifestyle
Objective test – even if unaware e.g. coma
Subjective test – once a couch potato, always a couch potato!
Quantification of damages
The solicitor should identify the details of the following:
The claimant’s life prior to the accident
Relevant to the loss of amenity claim
Pain and suffering associated with the accident itself and its immediate aftermath
What were the injuries?
How did the claimant react?
Was he taken to hospital by ambulance?
Any periods of time when the claimant was in hospital
Number and nature of any operations
Number and nature of any other medical procedures
The short-term and long-term prognosis
Will the claimant recover in full?
If not, what will his/her continuing pain/disabilities be?
How long will they continue?
Is there a risk of future degeneration?
E.g. osteoporosis
What has been/will be the effect of the injuries on the claimant’s lifestyle?
The courts will refer to awards made in comparable cases, so must research
Judicial College Guidelines = good starting point to give you a ball-park figure for types of injury
Then use specialist sources e.g. Kemp & Kemp on Damages - once you have identified a relevant figure in a comparable case, make adjustments
Sex - E.g. scarring (especially on the face) on a female claimant carries a higher award than for a male claimant
Age
In cases of permanent disability, younger claimants tend to get more compensation that older claimants as the young will suffer longer
On the other hand, some injuries will have a more severe impact on an older claimant than on a younger one
Loss of amenity - heavily influenced by whether the claimant had a previously active lifestyle
Limb injuries - injuries to dominant limbs attract higher awards than injuries to non-dominant limbs
Inflation
Previous awards must be inflated to present-day values
The inflation table in Kemp & Kemp, The Quantum of Damages, can be used
Uplift of 10%
In the case of Heil v Rankin and Another [2000] the Court of Appeal considered the level of damages for pain and suffering and concluded that they were too low and stated that there should be stated increases for all future cases where the value of awards for pain and suffering was in excess of 10,000
Consequently, when seeking to rely on a pre-March 2000 case in excess of 10,000 a conversion table (such as that found in Quantum 2/200, 18 April 2000 (Sweet & Maxwell) must be used to update the award, which will then need to be inflated to present-day values
The inflated figures provided in Lawtel’s quantum reports take into account Heil v Rankin, and their online calculator will do this automatically where relevant
The 5th edition of the Guidelines also takes the increases into account
Damages where there are pre-existing injuries or conditions
The defendant is liable for the full extent of the aggravation or exacerbation of the claimant’s pre-existing conditions
Where the defendant can show that the claimant would have eventually suffered in any event, damages will be restricted to those arising during the acceleration period
Explain the basis of the award and incident itself
What pain claimant suffers from now
Pain diaries can be useful
Mention interest at 2% awarded from service of proceedings to trial
Step 2: Handicap in the labour market
Smith v Manchester (1974) award
Only relevant where the claimant can still work in the original job and there is a risk that he will lose it
It is ADDITIONAL to any award for loss of earnings
In deciding whether this award is appropriate, the court will
Consider whether there is a ‘substantial’ or ‘real’ risk that the claimant will lose his present job; and if there IS,
Assess and quantify the present value of the loss which the claimant will suffer if that risk materialises
In doing so, the court will have regard to:
The degree of risk
The time when it is likely to materialize
The factors, both favourable and unfavourable, which may affect the claimant’s chance of getting another job at all or an equally well-paid job
The evidence of the risk – needed by both parties
Medical evidence
Workplace evidence
Evidence of value
No easy task
Evidence
The award
Present value of the loss is hard to quantify – the common approach is between 0-2 years’ net loss of earnings as at date of trial
But in Foster v Tyne and Wear CC [1986], the Court of Appeal stated that there was no conventional figure here, and awarded 4 years’ net salary
When to claim
Should normally be claimed in the particulars of claim
Need lots of evidence about future job prospects (perhaps employment consultant)
Procedure
Pre-action – mention Smith v Manchester
Letter of claim – mention Smith v Manchester
Particulars of claim – if matter is not settled, mention in Smith v Manchester
Schedules – mention in Smith v Manchester
Witness statements – mention in Smith v Manchester
No interest is payable on a Smith v Manchester award
Inappropriate if total inability to work so FULL loss of earnings awarded on that basis
Step 3: Loss of congenial employment
Compensation for the loss of job satisfaction - traditionally under pain, suffering and loss of amenity, but court now normally makes separate award
Musical, theatrical and creative files
Art, fine art, furnishings
Vocational fields e.g. medicine, rescue services, education
Awards normally 5,000-10,000 but higher awards made in appropriate circumstances (in Appleton v Medhat Mehoammed El Safty [2007] a footballer received 25,000)
Any evidence relating to this claim must be in the witness statements for exchange
The claimant must give full details of nature of previous employment, any training/qualifications required and predicted career progression etc.
Helpful points – lengthy training, longed ambition, tendency outside 9-5 work hours
No set criteria - depends upon the facts of case/character of claimant
The award
Additional to other heads of damage e.g. loss of earnings
Sums are relatively small
Step 4: Future cost of medical expenses, care and quasi-nursing services
Future cost of care
Find multiplier using loss for life table - multiplicand x multiplier
Assess multiplicand based on special damages figure for losses incurred to trial date
When identifying the multiplier, use Table 1 or 2
It is NOT appropriate to discount whole life multipliers – Page v Sheerness Steel Co
Cost of medical expenses, aids and appliances
Continuing need – use multiplicand x multiplier as above (e.g. wheelchair is 1,000 and has 5 year life-span so multiplicand is 200)
One-off needs e.g. operation = one-off payment
Annual costs = multiplicand
Find multiplier in table
ROAD TRAFFIC ACCIDENTS
The NHS hospital can claim back the cost of emergency treatment
This is recovered from the wrongdoer’s insurer
This is by virtue of the Road Traffic (NHS) Charges Act 1999
This will NOT affect the claimant’s damages
Modernise property or buy a new home? Roberts v Johnstone [1988]
Claimant to account for sale of previously owned accommodation
Annual cost of purchase of new property
Actuarial tables
Future loss schedules - Claimant’s schedule, Defendant’s counter schedule and Evidence from experts
Step 5: Loss of future earnings
Multiplicand (net salary) x multiplier (loss from trial-return to work reduced using Ogden)
Multiplier
Identify the correct table from Tables 3 to 14 by using the claimant’s sex and previously anticipated retirement age
Find claimant’s age at the date of trial along the left-hand vertical column - 2.5%
Using Tables A-D consider whether further discounts are appropriate to take account of other ‘risks and vicissitudes of life’
Whether claimant was employed at the time of the accident
Whether claimant was disabled at the time of the accident
The claimant’s level of educational attainment at the time of the accident
Degree/equivalent and higher
GCSE grades A*-C up to A Levels and equivalent
Below GCSE grade C or CSE grade 1 or no qualifications
Multiply by the Multiplicand (salary)
The claimant’s annual loss (taken from date of trial) so usually net annual earnings
Deduct tax and national insurance
Career progression
In cases where claimant would have had good career progression, court will either
Determine an average multiplicand or
Use stepped multiplicands for each stage of the claimant’s career
Child claimants - the court will take into account:
The nature of the employment of the claimant’s parents and...