Court clears up whiplash confusion

The Court of Appeal has cleared up confusion over the Jackson reforms by ruling that a 10% uplift in general damages will start from 1 April 2013.

The 10% uplift was part of the original whiplash reforms suggested by Lord Jackson, but no start date had been set for the increase until now.

The increase in damages awarded in personal injury cases was designed to compensate claimants for having to pay their own success fees and after-the-event (ATE) premiums. Both of these will be banned under the legal aid, sentencing and punishment of offenders act.

The uplift start date of 1 April will coincide with the roll-out of the legal aid act.

However, Cost Advocates costs lawyer Jon Lord said that the uplift start date would hit insurers, who would end up paying more as a result.

He said: “The Court of Appeal identifies that this 10% increase will not achieve perfect justice, however the immediate injustice that springs to mind is that the increase in damages was supposed to be a trade off for the claimant having to pay his own success fee and ATE premium, if he has one.  

“However, the additional liabilities will only be irrecoverable for cases that are issued on or after 1 April 2013 whereas damages will increase for all judgments after that date.

“There will therefore be a considerable overlap period when insurers are both paying the extra 10% in general damages and having to pay the solicitor’s success fee and the ATE premium.”