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Matthew Claxson | 03.12.2019
11.02.2019 Samantha Grose
Personal Injury compensation
In Livingstone v Rawyards Coal Company (1880), Lord Blackburn defined compensation in a personal injury claim as ‘that sum of money which will put the party who has been injured, or who has suffered, in the same position as he would have been in if he had not sustained the wrong for which he is now getting his compensation or reparation’.
Personal Injury compensation can be in the form of a lump sum payment, by way of periodical payments, or a combination of both.
Periodical payments are regular payments made by the Defendant over the course of an injured person’s lifetime to compensate them for an aspect of their losses, for example future nursing care. These periodical payments are usually in addition to a separate payment for other items of the claim that at the time of settlement can be quantified.
In our experience periodical payments are usually considered in cases where the total value of the claim exceeds £1,000,000.
Under the Damages Act 1996 a court could make a Periodic Payments Order (PPO), or a lump sum award, or a combination of both. However, the consent of both parties was needed to make a PPO and a PPO could not be varied at a later stage. Therefore these orders were rarely made. This was later amended by s.100 of the Courts Act 2003 so that the court can now make a PPO in the absence of consent from the parties, if the court believes it is in the best interest of the injured person.
Further, the Damages (Variation of Periodical Payments) Order 2005 means a PPO can be varied at a later stage. However, the grounds on when a PPO could be varied are limited (for example, if an injured person’s health unexpectedly deteriorated then the court could vary the order to increase the payments).
Periodical payments should be carefully considered by injured persons in high value matters. There are many advantages to receiving compensation in this manner which are considered further below.
The information contained in this article is a brief insight into the advantages and disadvantages of periodical payments. It is a complex area of law and specialist legal and financial advice should be taken to ensure the injured person makes the right decision for them.
If you have suffered a Serious Injury then contact the Moore Blatch Serious Injury Team today on 0800 157 7611 to explore how we might assist you with your personal injury claim.