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Government approves new powers for the Courts in Personal Injury cases

The Minister for Justice, Equality and Defence, Mr. Alan Shatter T.D, has

announced that the Government today approved his proposals to prepare

legislation to give the courts new powers to make periodic payment orders

for the benefit of persons catastrophically injured through the negligence

of others. The Government’s approval meets a commitment to reform the law

in this area as outlined in the Programme for Government.

The Minister noted that “there has been much debate in recent years as to

the appropriateness and adequacy of lump sum awards in cases of

catastrophic injury. Assessing damages in such cases is difficult given

the uncertainties affecting assumptions made as to the person’s future

circumstances and issues such as investment returns and inflation rates.

The danger with the lump sum approach, which is the current method of

assessing damages in such cases, is that it can lead to situations where a

person is over-compensated or under-compensated. Under the lump sum

approach there is no recourse for a plaintiff who may exhaust his fund by

exceeding his life expectancy perhaps owing to advances in medical science.

Similarly, there is no recourse to a defendant where the plaintiff dies

before the time originally projected and the remainder of the lump sum

becomes, in effect, a windfall for his or her family.

I believe that the introduction of an appropriate and effective scheme of

periodic payment orders will address this issue and will further the

interests of justice. It is, of course, vital that any such scheme must

ensure the continuity of payments to the plaintiff. Where the State has

such a liability, security of payment is not an issue. However, in the

case of private defendants, usually an insurance company, the matter is

more complex and will require the establishment of a financial

infrastructure to ensure continuity of payment, whilst ensuring that the

State’s position under any such scheme is fully protected.”

The drafting of the General Scheme of the Civil Liability (Amendment) Bill

will commence shortly and will take account of the recommendations of the

Report of the High Court Working Group on Medical Negligence and Periodic

payments.