Overview

The Negligence and Damages Bill aims to reform the law in England and Wales concerning liability for negligence causing psychiatric injury and to update the rules on damages for personal injuries and death. It clarifies existing laws, making them more accessible and consistent, and adjusts compensation calculations for various scenarios.

Description

Psychiatric Injury

The bill establishes a clear framework for determining liability in negligence cases involving psychiatric injury. It defines who can claim (those with a "close tie" of love and affection to the immediate victim), clarifies what constitutes a "close tie," and removes some previous restrictions, such as the requirement that the illness be induced by shock or proximity to the event. It abolishes common law duties regarding psychiatric injury, replacing them with statutory provisions.

Damages for Personal Injuries

The bill addresses damages for personal injuries where a claimant's life expectancy is reduced. It specifies how courts should assess damages for pain, suffering, and loss of amenity, considering the claimant's awareness of their shortened lifespan. It outlines a method for calculating pecuniary losses, considering potential earnings and benefits during the "lost period" (the time between the expected and notional date of death), with a standard 25% deduction for living expenses.

Bereavement Damages

The bill details rules for calculating bereavement damages payable to relatives of someone who dies due to another's negligence. It defines eligible relatives, specifies compensation for loss of dependency and distress, and sets a limit of 75% of the deceased's net income for loss of dependency. The bill also clarifies how such claims are handled if a relative or the personal representative dies.

Other Provisions

The bill repeals certain sections of previous Acts, notably the whole of the Fatal Accidents Act 1976 and Section 1 of the Law Reform (Miscellaneous Provisions) Act 1934, and provides for the vesting of rights in personal representatives. The Bill also clearly defines "personal injuries" and "relative" for the purposes of the act.

Government Spending

The bill's impact on government spending is not explicitly stated within the provided text and cannot be calculated without further information. The changes to the rules concerning damages could potentially lead to increased or decreased payouts depending on individual case outcomes.

Groups Affected

• Claimants suffering psychiatric injury: The bill clarifies their eligibility criteria and simplifies the process of making claims.
• Relatives of those who die due to negligence: The bill changes the rules governing bereavement damages they can claim.
• Personal representatives of deceased individuals: The bill outlines the rights of personal representatives to pursue claims on behalf of the deceased.
• Insurers: The changes to damage calculation methods will affect insurance payouts.
• Defendants in negligence cases: The bill will define more clearly their liabilities in specific scenarios.

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