What is happening on court-imposable PPOs for Scotland?

The Damages (Investment Returns and Periodical Payments) (Scotland) Act 2019 received Royal Assent on 24 April 2019 but Part 2 of the Act, which allows Scottish courts to impose a periodical payment order (PPO) for future pecuniary losses in a personal injury claim rather than to award damages as a lump sum has still not yet been brought into force.

The Scottish Civil Justice Council (SCJC) is to prepare court rules on the practicalities of imposable PPOs before Part 2 of the 2019 Act is implemented. It has not yet set any timeframe for completion of this work, meaning that for the time being Scottish Ministers are unable to prepare the required commencement order that would bring Part 2 into force. The lack of impetus in the production by the SCJC of court rules on imposable PPOs is evident from their 2021/22 programme, published as part of its 2020/21 annual report, in which no mention is made of this work.

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Personal Injury Discount Rate and Periodical Payments Orders in Scotland: Damages (Investment Returns and Periodical Payments) (Scotland) Bill passes stage 3

On 19 March 2019, the Scottish Government Minister for Community Safety told the Scottish Parliament that she expects this Bill “to save defenders money”. This can perhaps be taken as a Scottish Government indication that the new Personal Injury Discount Rate (PIDR) for Scotland will be higher than the present -0.75% one. Given the prescriptive formula set by the legislation and to be applied by the Government Actuary, this government indication has to be treated with some caution.

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