Report calls for end to lump sums for serious injuries

SERIOUSLY injured people awarded damages in court should be allowed to receive the money periodically throughout their lives instead of in one lump sum, a top level report has advised.

An expert working group chaired by High Court Judge Mr Justice John Quirke yesterday published its report into the system of payments made to people in cases involving medical negligence, claiming the current lump sum model made it “inescapable” that wrong amounts will be awarded.

A submission to the group said the system of lump sum awards attracted “money hungry wolves”, sometimes family members or friends.

The group has now submitted a proposed draft bill to the Minister for Justice after it declared the system “inadequate and inappropriate”, mainly due to uncertainties over the plaintiff’s future circumstances and investment returns and inflation rates.

“The one virtual certainty about a lump sum award to pay for future care is that the wrong amount will be awarded,” it said. “That is inescapable.”

Given that cases involved “a conflict of evidence with both parties seeking the best possible outcome”, the report argued that courts face “the almost impossible task of providing ‘fair and just compensation’ where life expectancy is uncertain or disputed”.

According to the report, the expert group found seriously injured plaintiffs should not be deprived of a right to claim damages, intended to pay for the cost of their future care, periodically.

In addition, the group said these changes would not interfere with the rights of capacitated adults to reach agreement and to settle claims for damages “in such manner as they may deem appropriate”.

Recommendations include that new laws be enacted to allow the courts to order consensual and non-consensual periodic payments where long-term permanent care is needed – taking into account the nature of the injuries and the circumstances of the person awarded the damages. These payments would be exempt from taxation or for use in paying off creditors in the event of bankruptcy.

The report argues that the courts should also be allowed to order periodic payments for loss of earnings, but only by agreement between the parties.

* www.justice.ie