Anthony Hughes is back on form…and nearly back at work

Personal injury reforms continue to dominate my presidential duties and the MOJ pre mediation meeting in March proved to be an interesting couple of days, which in some ways raised more questions than it provided answers. The event, intended to resolve some of the contentious issues that have arisen, was chaired by Michael Napier QC, who could have his work cut out to when it comes to getting a result at the next meeting, coming up shortly.

The MoJ are taking a firm line on some issues and making their views known around areas such as:

  • There will be no alteration to the small claims limit under the new process
  • ATE will remain part of the process despite the fact it revolves around cases where liability is admitted

Working out the ATE premiums could be fun. Picture the scene, a room full of underwriters trying to price a premium where there is no risk. Sounds like one for the philosophers among us: ‘what comes first the premium or the risk?’

More to the point, if we’re not careful it could be the first point of satellite litigation. As I once said at an APIL gathering, “see you in the Court of Appeal…”, or even Europe…..

The parties are due to exchange views as to the issues identified a couple of weeks before the mediation starts, so that everyone knows where they stand and hopefully there will be no surprises. That doesn’t mean everything will fall in to place, however. I imagine that the areas of contention will be:

  • Part 36 – how will this apply to the stage 3 process?
  • Referral sources – should this be disclosed?
  • Children claims – are they in or out?
  • Evidence – should an additional statement be allowed at stage 3?

I hope the MoJ are prepared to be equally firm on these matters once the parties have aired their views, otherwise it will be difficult to make much progress. Indeed, on some of these issues the claimant & defendant positions are diametrically opposed and I doubt they will ever see eye to eye.

After spending two days in deepest Essex at the pre mediation meeting (in the hotel where Jade Goody got married no less), I set off for the CII dinner without my dinner suit – not the best start! After being rescued by my PA Pat I donned my ill-fitting hired suite (being 6ft 4 I am not easy to please) and set off for the Guild Hall only to be thwarted by a gas leak. So we all ended up having a couple of drinks at the CII and were then turfed out into St Patrick’s night, ill fitting dinner suit & all. “Curry” came the cry - best plan of the night!

I also spent much of the last month meeting with various insurers & the Lloyds Managers Association to discuss the progress of FOIL, and in particular how and on what issues we can work together on in the future. Generally I was pleased with the feedback about FOIL’s progress over the past few months, albeit we still have a way to go if we are to become more proactive and strategically involved. Some of the major issues concerning insurers at present are, unsurprisingly:

  • The ever increasing cost of credit hire
  • The escalation in claims for care in large loss claims
  • A possible reduction in the discount rate
  • Managing capital ratios with reduced investment income

FOIL is currently looking at a number of these issues through our Special Interest Groups (SIGs).

I am delighted, neigh ecstatic, to say that when I next pen this missive I will be back at work. Yes I have got early release for good behaviour and now start at Horwich Farrelly on 1st May, the day of the FOIL golf day – what a great way to start!

Anthony Hughes is president of Forum of Insurance Lawyers (FOIL).

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