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![Page 1: Legal Update: Courts, Claims and · PDF fileLegal Update: Courts, Claims and Costs Andrew Gilmour Partner BLM ... •2001 – Strang v Le Brusq (Jury) Deceased age 21 years. Parents](https://reader033.vdocuments.site/reader033/viewer/2022051508/5aa522647f8b9afa758cd163/html5/thumbnails/1.jpg)
Legal Update: Courts, Claims and Costs
Andrew Gilmour
Partner BLM
10th December 2014
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Legal Update
1. Increasing Value of Fatal Claims in Scotland
2. The Court Reform Act
3. Costs Reforms
4. Insurance Bill 2014
5. Future Reforms on the Horizon
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Increasing Value of Fatal Claims in Scotland
• Damages (Scotland) Act 1976, now 2011
• Loss of society now at Section 4(3)(b)
• Loss of support now at Section 4(3)(a)
• Applies to all fatal claims
• Special provisions for Mesothelioma
• Estate claims:
Solatium, Services, Loss of Earnings, Funeral Expenses
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Who else can claim?
Deceased’s “Immediate Family”:
• Spouse, civil partner or living with the deceased as if married
• Parent, child or person who accepted the deceased as a child or was
accepted by the deceased as a child
• Brother, sister or brought up in same household and accepted as a child of
the family
• Grandparent, grandchild or accepted as such
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“Distress, grief and loss of society” Section 4(1)
Immediate family are entitled damages for:
• Distress and anxiety endured by the relative in
contemplation of the suffering of the deceased before
death
• Grief and sorrow of the relative caused by the
deceased’s death
• The loss of such non patrimonial benefit as the relative
might have been expected to derive from the deceased’s
society and guidance if he/she had not died
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Older Awards
• 2001 – Strang v Le Brusq (Jury)
Deceased age 21 years. Parents awarded £30k each
• 2003 – Shaher v British Aerospace (Judge)
Appeal court reduced award to parents of deceased
son from £35k to £20k
• 2006 -Gillies v Lynch (Jury)
Deceased age 24 years. Mother awarded £80k
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Nimrod Jury Awards
• Young v Ministry of Defence 2010
Deceased 21 years male. Mother awarded loss of
society £90k and adult sister awarded £60k.
• Dicketts v Ministry of Defence 2010
Deceased age 27 years. Mother and father awarded £98k each including services of £2k-sum sued for
• Swarbrick v Ministry of Defence 2010
Mother awarded £100,000 – sum sued for
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Jury Awards 2011
• Hamilton v Ferguson Transport (Spean Bridge) Ltd 2011
Mother age 50 years killed in RTA
Husband age 67 years awarded £80k
Daughter age 17 years awarded £120k
Note hierarchy of awards
• Thomson v Dennis Thomson Builders Ltd
Pursuer was father of deceased who died in course of employment –
sole director and 100% shareholder
Deceased age 26 years
Father awarded £90k
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Judicial Awards 2011
• Bellingham v Todd 2011
Widow - £50k
Young children - £25k each/Adult son - £15k
Parents - £15k each
Adult brother - £10k
• Wolff & Ors v Moulds & Ors 2011
Widow - £50k
Adult children - £15k and £18k
Grandchild - £6,500
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Appeals
Hamilton / Thomson Appeals 8.6.12
• Original jury awards excessive
• Disparity in awards by judges and juries unsatisfactory
• Absence of direction to jury unsatisfactory - now refer jury
to spectrum of possible awards
• Judge Awards in Bellingham and Wolff “markedly
undervalue” loss of society claims
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Increasing Fatal Damages in Scotland
11
• Kelly v Upper Clyde Shipbuilders
Jury, 29.6.12, Mesothelioma. Widow £40K;
Child £25K; Grandchildren £1.5K,£4K, £8K; Sibling £8K
• McGee & Others v RJK Building Services
Judge, 18.1.13. PL. Widow £80K. Daughters £35K;
Son £27.5K; Grandson (17) £25K; Granddaughter (9) £20K;
Granddaughters (13 and 10) £12K
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Increasing Fatal Damages in Scotland
12
• Ryder v Highland Council
Judge, 13.6.13. RTA. Mother £40,000
• Currie v Esure Services Limited
Judge, 21.2.14. RTA. Father & Mother £42K each;
Sibling £22,500
• Scott v Parkes
Jury, May 2014. RTA. Mother £86,000
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Increasing Fatal Damages in Scotland
13
• Gallagher & Others v SC Cheadle Hulme & Others
Judge, 24.6.14. Mesothelioma.
Widow £80K; Children (adult) £35K each;
Grandson / Granddaughter £25K; Granddaughter £12K
Grandsons £2,500 each
• Stuart or Ward v Reid & NIG
Judge, 31.7.14. RTA. Grandchildren (5) £18K; (3) £16K;
Grandson (born 5 months after) £14,000
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Increasing Fatal Damages in Scotland
14
• McCarn & Ors v Secretary of State
Judge, 5.8.14. Mesothelioma.
Each adult child £35,000
• Young v McVean
Judge, 28.8.14. RTA. Mother £80,000
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Practical conclusions
• General Increase in Section 4(3) Awards – all levels
• Erosion of Hierarchy of Awards?
• Factors used to Increase Awards more important
• Continued increases from Judges Expected
• Possible levelling of awards
• Careful Reserving
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Loss of support s 4(3)(b)
Claimants - Immediate family plus those supported:
‣ Ascendant/descendant of deceased; Uncle and aunt
‣ Child or issue of deceased’s brother/sister, uncle/aunt
‣ Spouse or civil partner
‣ Section 7 – presumed to come from 75% of deceased’s net
annual income
‣ Exception – “for the purpose of avoiding a manifestly and materially unfair result” s 7(2)
‣ No challenge as yet to 25% deduction
‣ Income of remaining spouse ignored
‣ Must be a truly exceptional case to depart from 75%
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The Court Reform (Scotland) Act 2014
The Review of the Civil Justice System
• Scottish Government - appointment of Lord Gill
• The Gill Review – 2007 to 2009
• The Gill Report – September 2009:
“Report of the Scottish Civil Courts Review”
• Consultation Paper on the Review
• Scottish Government Response
• Parliamentary Progress and Passing
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The Reforms
Privative Limit of the Court of Session up to £100,000
The New Sheriff Court
• Focus on Sheriff Court below £100,000
• New Personal Injury Court in Edinburgh
• Civil Jury Trials
• Sanction for Counsel
• Summary Sheriffs
• All-Scotland Sheriff Appeal Court
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Scottish Civil Justice Council
Headed by the Lord President, Lord Gill.
• Creation and purpose
• Structure
• Significant role in implementation of the Court
Reform (Scotland) Act 2014
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The Reform Timetable
Early 2015:
• Recruitment begins of new Summary Sheriffs
2015-16:
• New Personal Injury Court starting operations
• New Sheriff Appeal Court starting operations
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The Effect of the Reforms?
Various Opinions have been expressed….
Gridlock in the Sheriff Court? Panicking Pursuers?
An end to the Bar? Shrinking of Court of Session?
Parties receiving reduced Costs and Increased
Proportionality? Rush before the Reforms?
Sheriff Court Juries awarding high sums in low cases?
Increased power to Sheriffs?
Increased access to justice? Quicker Resolution?
A Re-Badged Court of Session in Edinburgh?
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Costs Reforms
“Review of Expenses and Funding of Civil
Litigation In Scotland”
Sheriff Principal Taylor
2007-2009
Consultation Paper 2011 and Responses 2012
Public Meetings 2012
Report 2013
Scottish Government Response 2014
Primary Legislation Awaited....Bill in 2015?
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Costs Reforms
Summary:
• Post-Jackson Reform
• Costs-Budgeting
• QOWCS
• Referral Fees
• Damages Based Agreements
• Pre-Action Protocols
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Insurance Bill 2014
Background
Law Commissions’ Joint Report / Draft Legislation 17.7.14
UK Government Objectives and Aims
3 Key areas:
• Pre-contract duty of disclosure and the effect of
representations
• Effect of Warranties contained in the policy
• An insurer’s remedies for fraudulent claims
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Insurance Bill 2014
• Legislative Progress
• Possible Additions to the Bill
• Royal Assent – likely March/April 2015
• In force – October 2016
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Future Reforms on the Horizon
• Mandatory Pre-Action Protocols
• Damages (Scotland) Bill – Limitation to increase
from 3 years to 5 years
• Fatal Accident Inquiry Reform
• Recovery of NHS Charges in Asbestos Cases in
Scotland?
• Outcome of Enterprise Act?
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Q&A