The change – which is scheduled to come into force from the beginning of next April -- is intended to create a balanced package of measures in conjunction with the Government’s Legal Aid, Sentencing and Punishment of Offenders Act 2012, reports Legal Week newspaper.
Jackson reforms
The increase was a central pillar of measures recommended by Lord Justice Jackson in 2010, although the idea was not included in the legislation because the Court of Appeal is deemed ‘the tribunal best qualified to set guidelines for judges trying such actions’. However, in a recent judgment, the court’s judges explained that the increase will take effect next year, and parties engaged in or contemplating litigation should prepare accordingly. The ruling states: ‘This court has not merely the power, but a positive duty, to monitor and where appropriate to alter, the guideline rates for general damages.’
Delivering on the bargain
Brendan Padfield -- head of the personal injury department at London-based international law firm Eversheds – commented to the newspaper: ‘Damages have always been set by the courts. Since the creation of the Legal Aid bill, the intention has always been to tag on a 10 per cent increase in damages.
‘This development therefore marks the judiciary delivering on its part of the bargain to create a coherent package of reform. Giving all parties nine months’ notice of a hike in damages creates a level playing field to ensure both claimants and defendants to get their house in order beforehand.’
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