Periodical payments
Personal injury and clinical negligence litigation is a complex matter and many issues need to be given full consideration.
Section 2 of the 1996 Damages Act (as substituted by the Courts Act 2003) created a power to make a Periodical Payments Order (PPO) even where parties do not consent to such an order.
Not only does this section create
the power to make such an order,
it obliges the judge to consider
whether to do so in every case in
which the court is to award
damages for future pecuniary loss.
The power to make such an order is
at Section 2 (1) of the 1996 Act
which provides;
"A court awarding damages for
future percuniary loss in respect
of personal injury:-
(a) may order that the damages are wholly or partly to take the form of periodical payments, and
(b) shall consider whether to make the order.
The use of periodical payments can bring immense benefits to claimants due to the certainty of income and tax-free status of the payments.
However, due to the complexity it is vital to fully explore and assess the suitability of periodical payments in each individual case.
Guidance is contained under Part 41 of the Civil Procedure Rules but there are two aspects to the decision the court must make, they are inter-related and need to be considered at the same time;
(1) which heads of damages should be compensated by lump sum payments and which by periodical payments?
(2) how to index the periodical payments to protect their purchasing power against future inflation (Thompstone v Tameside and Glossop Acute Services NHS Trust and other appeals [2008] EWCA Civ 5)
By specialising in the provision of advice and services to personal injury and clinical negligence claimants,
Quantum Portfolio Management is able to assist in all cases including where the defendant chooses to self-fund.
We are able to
provide specialist periodical payments viability reports, in accordance with
41.5 (1) of CPR Part 41, using our financial modeling
tools.