The Bill for Compensation

Andrew Parker

Head of Strategic Litigation

Beachcroft Wansbroughs

Legacy Politics

The Arculus Report

From Better Routes to Redress (May 2004): ‘It is a commonly held perception that the

United Kingdom is in the grip of a “compensation culture” … It is this perception that causes the real problem.’

‘It has got to be right that people who have suffered an injustice through someone else’s negligence should be able to claim redress’

‘The case for prompt intervention through rehabilitation could not be better made.’

The Compensation Bill To succeed and survive, the new Bill will need:

Broad public support Broad party political support

The Bill should be characterised by: Balance Clarity Common sense A “joined up” approach Progress on rehabilitation

The Government

Labour Party Manifesto, April 2005 ‘Rights must be balanced by responsibilities

… we will continue to bear down on abusive or frivolous claims’

Tony Blair UCL Speech, 26 May 2005 ‘Wherever possible, we want claims settled

informally and quickly, without going to court’ We cannot eliminate risk. We have to live

with it, manage it. Sometimes we have to accept: no one is to blame’

Two Steps at a Time …?

The Compensation Bill will cover: Regulation of “claims farmers” Statutory definition of “reasonable care”

Parallel moves may include: NHS Redress Bill Legal Services Bill Incapacity Benefit Reform Bill An advertising standards clampdown? Further legislation?

Advertising Standards?

Lessons from Australia

Civil Liability Act 2002 (NSW) Apology not an admission No liability for insignificant risks No warning for obvious risks Actual notice of highway defects

Lessons from Australia (2)

Civil Liability Act 2002 (NSW) Damages threshold? Limit on claims for gratuitous “care”? Public authority’s resources? 5% discount rate for future loss

Rehabilitation

Better Rehabilitation Early access NHS in front line “Legal triage” Fit for Work Fit for Life Good for people Good for business

Coherent plan?

Rehabilitation Responsibility Best practice Common sense Sustainability Consensus

‘Money for claims doesn’t come from heaven. It comes from premiums.’Charles Breitstadt, Nationwide Insurance (USA)

The Bill for Compensation

Andrew Parker

Head of Strategic Litigation

Beachcroft Wansbroughs