“Use of vehicle” to receive further judicial scrutiny in the Supreme Court

The Supreme Court has granted permission to appeal in R&S Pilling v UK Insurance. The claim stems from a fire, caused by Mr Holden welding has stationary car in order to rectify defects reported in a failed MoT test, which severely damaged the claimant’s building. The case turns on whether welding the car was “use” of the vehicle for the purposes of compulsory insurance (as required by section 143 of the Road Traffic Act 1988). It is difficult to predict when the Supreme Court might hear the case but the fact that it will very much keeps the debate on “use” a very live topic.

Continue reading

Justice Select Committee reports on Discount Rate legislation

 “setting the discount rate is more than a technical decision: it involves balancing the interests of the claimants with the defendants and also balancing the social costs”

Today the Justice Select Committee published its analysis of the draft discount rate legislation. We set out our initial thinking on the report below.

The Committee had been asked to report on this by the end of November, following the Government publishing the legislation in early September.

What happens next is not totally clear. The Government has already indicated that it will respond to the report within two months. On that basis, its plan should be clear by the end of January.

We fully expect the Government to press on with the proposed legislation but to take some note of the Committee’s recommendations about research and clarity on the necessary balance to be struck here between claimants, defendants & indemnifiers and society generally. But it seems to us that a good deal of those issues have been already addressed, for the most part, in the materials published by the Ministry following its consultation.

The tone of the Committee’s report today may be cautious, but from remarks by Ministers in the consultation material and in evidence to the Committee, the Government clearly intends to proceed as promptly as it can. If it is able to respond to this report as planned and to hold to its sense of urgency then we would expect the proposed legislation to be introduced in the New Year and before the Easter recess.

This is a hugely controversial area and it is realistic to expect the Bill to be subject to robust, and perhaps hostile, scrutiny in Parliament. It could still even be the subject of yet another judicial review; which would bring a very real risk of delay if it were to happen.

We shall provide further information as this issue develops.

Continue reading

Has the Chancellor revived the whiplash reform programme?

Yesterday’s budget marks just over two years since former Chancellor George Osborne announced, in his 2015 Autumn Statement, significant reforms to damages for whiplash claims and five-fold increase in the small claims limit for road traffic injury cases. Material released by the Treasury yesterday appears to indicate that Government expects to implement these reforms before April 2019.

Continue reading