The MOJ Proposals - A New Claims Process
The response to the consultation on the ‘case track limits and the claims process for personal injury claims’ was published on 21 July 2008. A date for the new rules has not been given, but the Civil Procedure Rules Committee are drafting the new rules following the publication of the consultation paper.
Case Track
- The small claims track will remain the same, with the limit for personal injury still at £1,000 and the general small claims limit remaining at £5,000.
- The fast track limit will be increased to £25,000.
The New Claims Process
- The new claims process is in relation to RTA claims valued at more than £1,000 and less than £10,000. The new claims process will not apply to EL, PL, disease or clinical negligence cases.
- There will be a new Claim Notification form for the new claims process and a separate form for Claimant’s in person with information about obtaining legal advice.
- There will be a 5 day time limit for Claim Notification Form.The 5 day time limit will start to run as soon as the Claimant’s Solicitor has gathered all the required information to complete the claim notification form.
- Insurers will then have 15 working days to respond on liability and there will be no provision for extensions for decisions on liability.
- The wording of the admission of liability will need to be clear so that there is an admission of breach of duty of care, leaving causation in issue prior to receipt of the medical report.
- Once causation or contributory negligence is alleged, the claim will no longer follow the new procedure and fixed recoverable costs will not apply from that point.
- Fixed Costs are yet to be confirmed and are to be considered and advised upon by the Advisory Committee on Civil Costs.
- Additional medical reports can be obtained where necessary. If more time is needed before a full prognosis can be reached, then the parties are to agree a stay of proceedings for the required period.
- Where quantum is not agreed, the District Judge will decide damages at a hearing and unless both parties agree, this should be dealt with on paper.
- The Part 36 provisions will remain but more emphasis will be placed on judicial discretion. If a party has made an unrealistic offer that has caused the need for a quantum hearing then they will be penalised.
- ATE insurance will continue to be recoverable.
- There is continuing work and discussion in relation to standardising special damages.
Comment
The conclusions of the consultation are likely to come as a sigh of relief to many, as the new process relates only to road traffic claims with a value worth between £1,000 - £10,000 although the 15 day time limit will be difficult.
A date has not yet been set for when the new rules will be in force. It is suggested that both insurers and local authorities assess their case management procedures now to prepare for the forthcoming transition to the new process.
Helen Brown is a Partner and Head of the Public Sector Unit at Langleys