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PERSONAL INJURY We Need To Talk About Katie 23 November 2012 www.9sjs.com [email protected] 9 St John Street, Manchester, M3 4DN DX Address: 14326 MANCHESTER 3 Tel: 0161 955 9000 ABSTRACT is article considers the impact of Katie Ward – v – Allies and Morrison Architects [2012] EWCA Civ 1287 on the litigation landscape regarding loss of earnings awards by reason of moderate or subtle injuries. By Michael Lemmy and Matthew Snarr

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Page 1: We Need To Talk About Katie · About Katie 23 November 2012 civilclerks@9sjs.com 9 St John Street, Manchester, M3 4DN DX Address: 14326 MANCHESTER 3 Tel: 0161 955 9000 ABSTRACT Th

PERSONAL INJURY

We Need To Talk About Katie

23 November 2012

[email protected] St John Street, Manchester, M3 4DNDX Address: 14326 MANCHESTER 3Tel: 0161 955 9000

ABSTRACTTh isarticleconsiderstheimpactofKatie Ward – v – Allies and Morrison Architects[2012]EWCACiv1287onthelitigationlandscaperegardinglossofearningsawardsbyreasonofmoderateorsubtleinjuries.

ByMichaelLemmyandMatthewSnarr

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Introduction

1. InWard v Allies and Morrison Architects[2012]EWCACiv1287theCourtofAppealadjudicatedontheappropriatenessofmakingaBlamireawardasopposedtoadoptingaconventionalOgden61multiplicand/multipliercalculationtocompensatefuturelossofearningsandonwhetherthedeterminationofwhetheraninjuredpartyisdisabledisconclusiveinadoptingtheOgden6multiplicand/multiplierapproach.

A Short History

2. UponthepublicationofthefirsteditionoftheOgdenTablesin1984itbecamepossibleforCourtsandpractitionerstoadoptamoreaccurateapproachtopredictingfuturepecuniarylosses,includingfuturelossofearnings.TheCivilEvidenceAct1995,Section10,makestheOgdenTablesadmissibleperseinevidence.

3. TheOgdenTableswereapprovedbytheHouseofLordsinWells v Wells[1999]AC945perLordLloydatp379whostated,

“I do not suggest that judges should be a slave to the tables. There may well be special factors in particular cases. But the tables should now be regarded as a starting point rather than a check. A judge should be slow to depart from the relevant actuarial multiplier on impressionistic grounds or be referenced to “a spread of comparable cases, especially when the multipliers were fixed before actuarial tables were widely used.”

4. Personalinjurypractitionerswillbefamiliarwiththeconceptofdiscountingthemultipliersintables3to14toreflectcontingenciesotherthanmortalitiesundertheauspicesofwhatusedtobetermedgenerallabourmarketforces.Theartofdiscountingbecameacrudebutsomewhatpredictableexercise,perhapsimpreciseorunjustfromtheclaimant’sperceptive,itcarriedadegreeofcertaintyamongstpractitionersandtheCourt.

5. ResearchcarriedoutbyDrVictoriaWassatCardiffUniversityandZoltanButt,RichardVerrallandStephenHabbermanatCityUniversitydemonstratedthatthekeyissuesaffectingaperson’sfutureworkinglifearedependenton:

a) Gender;

b) Disabilitystatus;

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c) Educationalattainment;

d) Employmentstatus.

6. TheOgden6TableswerepublishedinMay2007andincorporatedTablesA-Dtoprovideforseparateadjustmentstobemadeforindividualemploymentstatus,educationalandvocationalqualificationsanddisability.

7. AccordingtotheIntroductiontothe7thEditionoftheOgdenTables,theresearchbyVictoriaWassandhercolleaguesdemonstratesthatpeoplewithoutdisabilitiesspendmoretimeoutofemploymentthanearlierresearchsuggested.Italsodemonstratesthatfactorssuchasoccupation,geography,industrialsectorandlevelofeconomicactivityarelessimportantthanhadpreviouslybeenconsidered.

8. ThenewapproachtocalculatingfuturelossofearningsendorsedinOgden6(nowOgden7)heraldedasignificantincreaseinvaluationandawardsofclaimant’sfuturelossofearningsclaims.ArguablyitalsobeganthedemiseofSmith v Manchesterawards.Anexampleoftheincreasedlevelofcompensationisshownbelow:

Example A: Pre-Ogden 6

A35yearoldman,livingintheNorthWest,suffersanamputationtohisrightdominantlegcausinghimtobeunabletocontinuehisworkasalumberjackinwhichheearned£20,000netperannum.Henowworksasapart-timecarparkattendantearning£10,000perannum.

Differencebetweenpreandpost-accidentearnings=£10,000p.a.

OgdenTable9(multiplierforlossofearningstopensionage65(males))atadiscountrateof2.5%fora35yearoldmaleis20.57.

Thediscountfactorformediumeconomicactivityforamanaged35is0.96.Thatdiscountfactorisreducedby0.02toreflecttheriskynatureoftheClaimant’semploymentandby0.02toreflecthisgeographicallocationgivingadiscountfactorof0.92.

0.92×20.57×£10,000=£189,244.

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Example B: Post Ogden 6 calculation

(i) butforearnings=£20,000perannum(multiplicand×18.33[0.89–TableA×20.6OgdenTable9])=£366,600;

(ii) asisearnings=£10,000perannum(multiplicand×8.03[.38–TableB×20.60OgdenTable9])=£80,300;

(iii) £366,600–£80,300=£286,300.

9. Moreinterestingly,apartfromtheincreaseinawardsforclassicfuturelossofearningscalculations,claimants’representativesbegantoadoptanOgden6/7calculationinrespectofwhathadpreviouslybeenSmith v Manchestertypeclaimsonthebasisthattheactuarialfiguresanddiscountsincorporatedthelikelihoodthataclaimant,disabledbytheirinjury,waslikelytospendmoretimeoutofworkthananon-disabledpersonandaccordinglythismethodofcalculationwasmoreaccuratethanthebroadbrushapproachofaSmith v Manchesteraward.

10. Theeffectofthisapproachistoincreasecompensationforfuturelossofearningsawardswhereclaimantshavesufferedseriousinjurybuthavereturnedtowork.Anexampleofsuchcaseissetoutbelow:

Example C: Nil Ongoing Loss

Anemployedchauffeuraged25suffersanaccidentatworkwhenafellowemployeeshutsacardooronhishandresultinginacrushinjurytohisleft,non-dominanthand,withacontinuingminortomoderatelackofgripstrength.Theinjurydoesnotpreventtheclaimantfromcarryingoutanyofhisworkrelatedactivitiesasachauffeur;hedrivesanautomaticvehicleandcanhandlemostbaggage.Hewould,however,haveobviousdifficultieswithamanualgearboxorindeedanyheavymanualemployment.TechnicallytheclaimantmayfallwithinthedefinitionofdisabledwithinthemeaningoftheEqualityAct2010.Pre-Ogden6suchaclaimantwouldprobablyhavecontendedforaSmith v Manchesterawardintheregionofapproximatelyoneortwoyears.Post-Ogden6aclaimantwouldnowbelikelytopleadhisclaimasfollows:–

(i) ‘butfor’theaccidenttheclaimantwouldhaveearned£20,000perannum×18.33[0.89–TableA×20.66–OgdenTable9]=£366,600;

(ii) pursuanttoOgden6theclaimantwillnowearn£20,000perannum×8.03[0.39–TableB×20.60–OgdenTable9]=£160,600;

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(iii) totalequals£366,600–£160,600=£206,600;

(iv) ifsuchanapproachwereacceptedbytheCourt,itislikelythattheCourtwouldadjustthemultipliersproposedabove.

11. ThepositionthereforeisthatmanypractitionersarguethattheOgden6Tablesarethestartingpointforclaimantsvaluingclaimsofthisnature.

The Rise and Demise of Handicap on the Open Labour Market Awards

12. TraditionallythescenarioinwhichaninjuredclaimantremainsinworkhasbeencompensatedbytheprovisionofaSmithandManchesteraward.AlthoughitwasnotthefirstofitskindSmith v Manchester Corporation[1974]17K.I.R.1CAbecametheguidelineauthorityfortheprovisionofanawardtocompensatethelossofearningcapacityrepresentedbythephysicalhandicapproducedbytheinjuryasopposedtoanactuallossofearnings.

13. TwopreconditionsmustbesatisfiedinorderforaSmith v Manchesterawardtobemade:

(i) Theremustbea“substantial”or“real”riskthataclaimantwilllosehispresentjobatsomepointbeforetheestimatedendofhisworkinglife;

(ii) Ifthereissucharisk,theCourtmustassessandquantifythepresentvalueoftheriskofthefinancialdamagewhichtheclaimantwillsufferifthatriskmaterialises,havingregardtothedegreeoftherisk,thetimewhenitmaymaterialiseandthefactors,bothfavourableandunfavourable,whichinaparticularcasewill,ormay,affecttheclaimant’schancesofgettingajobatall,oranequallywellpaidjob2.

14. Oncethesetwopreconditionsaresatisfied,theCourtmustcalculatethepresentvalueofthatfutureloss.Thisisnormallydonebyreferencetotheclaimant’sannualnetincome.However,theapproachofSmithandManchesterawardshasledtosomecriticismthattheprocessremainsquitearbitraryandthatCourtstendtoleantotheungeneroussideintheirawards.3

15. Theintroductionofthenewmethodofcalculatingfuturelossofearningsinthe6thEditionoftheOgdenTableswasaccompaniedbyviewsexpressedbypractitionersandacademicsthatthenewmethodwouldmakeSmith v Manchesterawardsmainlyredundant.4ThepremisesforthisapproachisthattheOgden6Tablesprovidedwithinthemstatisticalcalculationsdesignedtoreflecttheriskthatadisabledworkingornon-workingindividualwouldcomeontotheopenlabourmarket.

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16. Inpractice,althoughslowly,theCourtshavetendedtoleantowardsadoptingamultiplier/multiplicandapproachusingtheOgden6TablesasagainstmakingaSmith v Manchesteraward.InSharma v Noon Products Limited[2011]QBDanagencyworkersufferedacrushinginjurytohisrightindexfingerresultinginthefingerbeingconsiderablyshorter,painandlimiteddexterity.Atthetimeoftrialtheclaimantwasindirectemployment.Hehadbeenemployedfor3years.Thedefendantcontendedfora6monthsSmith v Manchesterawardinthesumof£7,500,theclaimantcontendedforalifelossof£150,000.TheCourtheldthattheclaimant’sresidualdisabilitymeantthathisprospectsofemploymentandpromotionwereseverelylimited.Thoseriskswereaccountedforinthe6thEditionoftheOgdenTablesandadoptedamultiplierapproach.Importantly,theCourtupliftedthedisabledmultiplierdiscountfigurefromTableBfrom0.4to0.6,resultinginafuturelossofearningsof£92,000.

17. InEvans v Virgin Atlantic Airways[2011]EWHC1805(QB)HisHonourJudgeMcKennaadoptedanOgden6calculationinacaseinvolvingabeautytherapistwhohadsufferedaworkrelatedupperlimbdisorderasaconsequenceofheremploymentbuthadbeenredeployedintoaclericalpositionatalowersalary.TheCourtassessedfuturelossofearningsonthebasisthattheclaimantwouldretraintoworkatalowerprofessionallevelthanafulltherapist.5

Blamire – the magic bullet

18. Blamireawardsaregenerallyseenastheexception.Theycanbeappropriateincaseswherethereissomesignificantuncertaintyastotheprojectedearningspathoftheclaimant.InvariablytheyinvolvetheCourtawardingalumpsumofdamagesonabroadbrushapproachbasis.TheCourtsmayadoptamultiplier/multiplicandapproachinitiallyandthenreviewthatsteppingbackhavingregardtotherisksanduncertaintiesontheevidence.

19. ThedistinctionbetweenawardsmadeunderSmith v Manchester CorporationandBlamire v South Cumbria Health HA[1993]PIQRQ1arethatthelattermaybeappropriatewheretheuncertaintiesofacasemadebythemultiplier/multiplicandareunworkable,whereasaSmith v Manchesterawardseekstocompensateaclaimforthepossibilitythatatsomepointinfuturehe/shewilllosetheirjobandsufferahandicaponthelabourmarket.Theycompensatedifferentheadsofloss.Itispossibletohaveacasewhereajudgemakesanawardofboth.

20. InBullock v Atlas Ward Structures Limited[2008]EWCACiv194aclaimantdevelopeddermatitisasaconsequenceofhisworkasapaintsprayerrequiringhimtoceaseworkinginthatprofession.Heclaimedlossofearningsonamultiplier/multiplicandbasisfortheshortfallofapproximately£5,000perannumashewasnowworkingasawindowcleaner.InadditionheclaimedaSmith v Manchesteraward.ThedefendantallegedthatthereweresignificantuncertaintiesandadvocatedaBlamireapproach.Thejudgeagreedandawarded£50,000loss

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ofearningsplusa1yearSmithandManchester.Bothsidesappealed.OnappealtheCourtofAppealsubstitutedafigureof£90,000fortheBlamireawardandtheSmithandManchesterawardwasnotinterferedwith.KeenLJsaid:

“Merely because there are uncertainties about the future does not of itself justify departure from that well established method. Judges should be slow to resort to the broad brush Blamire approach, unless they really have no alternative.”

21. InWoodward v Leeds Teaching Hospitals NHS Trust[2012]EWHC2167(QB)HHJStuartBakerfoundthattherewere“fartoomanyimponderables”totaketheconventionalapproachandfoundinsteadthataBlamireawardwasappropriate.

Judicial Tinkering

22. However,evenundertheOgden6regimetheCourt’sapproachhasnotalwaysledtoconsistentcompensationforclaimants.6FocussingonthreecasesitispossibletoshowhowtheCourtshaveadoptedinconsistentapproaches:

(i) Conner v BradmanEWHC2789[2007];

(ii) Hunter v MODNIQB43[2007];

(iii) Lee-Smith v EvansEWHC134[Q.B.][2008].

Ineachofthesecasestheclaimantsworkedinmanualemploymentandsufferedinjuriestotheirlegswithsubsequentimpairmenttomobility.VictoriaWassanalysedtheCourt’sapproachtoreductionfactors(employmentrisksandaveragesforbroadlydefinedgroupsofworkingageindividuals)andfoundasfollows:

(i) Connor:thereductionfactorwasreducedfrom40%to20%;

(ii) Hunter:thereductionfactorwasreducedfrom78%to33%;

(iii) Lee-Smith:thereductionfactorwasreducedfrom41%to35%.

23. OverallVictoriaWass’scriticismoftheCourt’sapproachwasthatthereductionfactorsprovidedforinTablesA-Dalreadyincludedanyallowancesforeffectsofseverity,impairmentandtransferabilityofskillswhichwereassociatedwithgainingemployment.Inshort,it

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appearsthatWasswascautioninglawyersagainsttinkeringtoomuchwiththereductionfactors.

24. Theresultanteffecthasmeantithasbecomemoredifficulttovaluecertaintypesofclaimsbutespeciallythoseinvolvinganongoingpartiallossofearnings(whereadifferent,lowermultiplierisappliedtotheresidualearningcapacity)orwheretheclaimanthasremainedinemploymentandappearstosuffernoactuallossofearnings.

Update: Ward v Allies and Morrisons Architects

25. Theclaimantwasamodelmakerwithafirstclassdegree.Shesufferedaninjurywhilstonashorttermplacementinwhichtheindexfingerofherleft(non-dominant)handwascutoffandhermiddlefingerdislocated.Herindexfingerwasre-attachedandshemadeaconsiderablerecovery.Theclaimant’scasewasthatshewouldnownolongerbeabletoworkasamodelmakerintheatresorintheperformingarts.However,theCourtwasnotsatisfiedthattheclaimantwouldnotbeabletoobtainmodelmakingworkforarchitectsatasimilarlevelofremunerationandfoundthatshewas“notthemostreliableofhistorians”.

26. Theunchallengedmedicalevidencewasthatshesufferedhypersensitivityandthattheindexfingerwaslargelycosmeticbutthattherestofthehandwasentirelynormalwithnormalgripstrength,i.e.shehadlostsomeofherformerdexteritybutnotmuch.

27. TheCourtwasnotsatisfiedthattheclaimantwouldbeunabletocarryoutherambitionofbeingamodelmakerintheperformingarts.Hermajorproblemhadbeenthefactthatshehadbeenoutofcirculationforaperiodof4yearsinanindustrywhichisdifficulttogetstartedinunlessdoorswereopenedorcontractsengaged.Thejudgeconcludedthattheclaimantcouldadvanceinanotherrewardingcareerasanarchitecturalmodelmakerwhichwouldproveequallyrewardingtoherdesiredcareerofbeingamodelmakerintheperformingarts.Accordingly,hemadeaBlamireawardinthesumof£30,000.

28. Anumberofargumentswereadvancedonappealbutthetwokeyissueswere:

(i) whenisitappropriatetouseaBlamireapproachasopposedtoOgden6?

(ii) isdisabilitythedeterminingfactorindecidingtousetheOgden6Tables?

29. AsregardstheBlamireissue,theCourthadheardevidencefromtheclaimant,herformertutoratUniversityandaseniorassociateatthedefendant’sfirm.Hewasnotsatisfiedthathe

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hadsufficientevidenceastowhattheappellanthadlostorwhatshewaslikelytoearninthefuturewithherinjuries.

30. TheclaimantarguedonappealthatthejudgehaderredinlawbyfailingtoadoptanOgdenmultiplicand/multiplierapproach.TheCourtofAppeal,atparagraph25,agreedwiththetrialjudge’sviewthattheevidencewasuncertainonthefollowingissues:

(i) whethertheappellantwouldhavesucceededinbecomingatheatricalmodelmaker;

(ii) whethershewouldremaininthatpositionthroughoutherworkingcareer;

(iii) whatlevelofremunerationshewouldhaveachievedinthatoccupation;

(iv) whetherthephysicalorpsychiatricrecoveryoftheappellantwassuchthatshecoulddoeitherthejobofthetheatricalmodelmakerorotherjobsasamodelmakeraftertheaccident;

(v) whethertherewaslikelytobeanydifferenceinearningsbetweenthetwojobroles.

31. TheCourtofAppealheldinthosecircumstancesthejudgewas“driven”toadoptingaBlamireapproach.

32. TheclaimantarguedonappealthatitwasnecessarytodeterminewhethershewasregardedasdisabledbeforeconcludingwhethertheOgden6Tablesweretobeusedornot.TheCourtofAppealrejectedthisargumentholdingthatthedeterminationastowhethertheclaimantwasdisabledwasnotthedeterminingfactorintheapplicationoftheOgden6Table.Itwasnotanautomatictrigger.Itquotedparagraph14oftheIntroductionoftheOgdenTableswhichstatesthat“therewouldbesituationswhereitwillbeappropriatetousethefactorssetoutinSectionBTablestocalculateaclaimant’sresidualearningcapacityonamultiplier/multiplicandbasis.However,inmanycasesitwouldbeappropriatetoincreaseorreducethediscountinthetablestotakeaccountofthenatureoftheparticularclaimant’sdisabilities.TherewillalsobesomecaseswheretheSmith v Manchester CorporationorBlamireapproachremainsapplicable.Theremaystillbecaseswhereaprecisemathematicalapproachisinapplicable.”

33. LordJusticeAikensheldthatgiventhiscommentarythemerefactthataclaimantcouldestablishthattheyweredisableddidnotautomaticallyleadtotheapplicationofanOgden6approach.Moreover,inhisview,hewouldnothaveconsideredtheclaimanttobedisabledwithinthemeaningoftheIntroductionprovidedtotheOgdenTablesatparagraph35whichstates:

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“The definition of employed/not employed, disabled/not disabled and educational attainment used in this analysis and which should be used for determining which factors to apply to the multipliers to allow for contingencies other than mortality are as follows:

......

Disabled: a person is to be classified as disabled if all three of the following conditions in relation to the ill-health or disability are met:

— has either a progressive illness or an illness which has lasted or is expected to last for over a year;

— satisfies the Disability Discrimination Act’s definition that the impact of disability substantially limits the person’s ability to carry out normal day to day activities;

and

— their condition affects either the kind or the amount of paid work they can do.

Not Disabled:

— all others.”

Analysis of Ward v Allies: Learning the Lessons

Lesson 1

34. ThefirstlessontobelearnedfromthecaseofWardistheimportanceofprovidingtotheCourtdetailedandpersuasiveevidenceuponwhichthecontentionsastolossofearningsarebased.Itcanbedifficultforclaimantstoestablishacareerlossofearningsclaim,especiallywhentheyareyoung,buttheuseofcomparatorevidence,employmentconsultantsandwitnessevidencefromtheprofessionitselfoughttobeprovidedtotheCourtiftheclaimantisgoingtomountaseriousargumentastothoselosses.

Lesson 2

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35. Indeterminingwhethertheclaimantisdisabledornotitisalwaysimportanttoaskthisofthemedicalexpert.ItdoesnotappearthatthatwasspecificallydoneinMrsWard’scase.

36. ThetestisnowassetoutundertheEqualityAct2010,thisisimportantbecausetheformerGovernmentdecidedtodroptherequirementintheDisabilityDiscriminationAct1995that,foranimpairmenttobeconsideredtoaffectaperson’sabilitytocarryoutnormalday-to-dayactivities,itmustaffectoneormorespecified“capacities”–namelymobility;manualdexterity;physicalcoordination;continence;abilitytolift,carryorotherwisemoveeverydayobjects;speech;hearingoreyesight;memoryorabilitytoconcentrate;learnorunderstand;orperceptionoftheriskofphysicaldanger(para4(1),Schedule1oftheDisabilityDiscriminationAct).IntheGovernment’sviewthislist“servedlittleornopurposeinhelpingtoestablishwhethersomeoneisdisabledintheeyesofthelaw,andwasanunnecessaryextrabarriertodisabledpeopleintakingcasesincourtsandtribunals”(para11.53,“TheEqualityBill–GovernmentResponsetoConsultation”,July2008(Cm7454)).

37. AccordingtotheexplanatoryacttotheEqualityAct2010“thischangewillmakeiteasierforsomepeopletodemonstratethattheymeetthedefinitionofadisabledperson.Itwillassistthosewhocurrentlyfinditdifficulttoshowthattheirimpairmentadverselyaffectstheirabilitytocarryoutanormalday-to-dayactivitywhichinvolvesoneofthesecapacities”(para682).ItisimportantinconsideringOgden6typecasesthattheissueofdisabilityisproperlydeterminedbythemedicalexpertsandthattheyaregivenappropriateguidancebywayofexplanatorynotestothelegislationand/oranyrelevantcases,forexample,onthedefinitionofsubstantialimpairment.

Lesson 3

38. WardremindspractitionersthatinorderforOgden6tobeengagedthereareeffectivelythreetriggers:

(i) IstheClaimantdisabled?

(ii) Whatisthelikelypatternoftheclaimant’semployment(pre-accident);

(iii) Whatisthelikelypatternoftheclaimant’semployment(post-accident).

Aclaimantwillhavetoestablishtheirevidenceonallofthesegrounds.Clearlythisisgoingtobefertilegroundfordefendantstoseektocreateconfusionortodeconstructandunpicktheclaimant’scasesoastogivetheimpressionofuncertainty,seethemattersraisedintheCourtofAppeal’sJudgmentatparagraph25.

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Lesson 4

39. GivenAikensLJ’sviewthatdisabilityisnotthedeterminingfactorfortheapplicationoftheOgden6Tables,practitionersshouldtakecarenottoassumethatthatwillbetheinevitableresult.However,itisimportanttonotethatatparagraph20theCourtofAppealheld:

“It is common ground that the multiplicand/multiplier methodology and the tables and guidance in the current edition of Ogden should normally be applied when making an award of damages for future loss of earnings, unless the judge really has no alternative.”

ThisisarestatementoftheprinciplepropoundedinBullockandconfirmsthattheOgden6methodisthepreferredmethodoftheCourts.

Lesson 5

40. Oneoftheissuesthatledtouncertaintyinthetrialjudge’smindwasthefactthattheworkundertakenbytheclaimantwasfreelanceworkwithnoguaranteeofpermanencyandbyitsnaturewastemporary.Thismaypresentagreaterdegreeofriskforclaimantswhoareself-employediftheyarenotabletoestablishadegreeofcertaintyabouttheirfutureemploymentoncontractsortheprovisionofworkonalong-termbasis.

41. Furthermore,itseemsthatifotherCourtsweretoadoptasimilarapproachtothetrialjudgeinWard’scasethenchildrenand/oryoungpersonsarelikelytofinditmuchmoredifficulttoprovetheirfuturelossesbyreasonofthefactthatthereisagreaterdegreeofuncertaintyabouttheirfuture.Thisunderlinestheneedtoprepareapackageofevidenceinsupportoftheclaimant’sclaim.Ifthatevidenceismissing,onthebasisofWard,itwillnotbeanunfairconclusiontodrawthattheearningspositionissouncertainthataBlamireawardisjustified.

Lesson 6

42. Interestingly,atparagraph26theCourtofAppealappearstoleavethedooropenforahybridformofaBlamireaward.TheCourtheldatparagraph28:

“Mr Huckle does not suggest that, if the judge was correct to use the Blamire approach, nonetheless the amount of the lump sum awarded for loss of future earnings was unreasonably low because it failed to take account of the appellant’s disability. That submission was not advanced by any of the grounds of appeal or in his written oral argument.”

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ThisappearstoleavethedoorajarforclaimantswhoaregenuinelydisabledtoarguethatevenifaBlamireawardismade,someformofupliftorincreaseinthestandardawardoughttobemadetoreflectthefactthattheyaredisabled(asisprovidedforwithintheOgden6Tables).

Conclusions

43. Lastmonthheraldedthearrivalofthe7thEditionoftheOgdenTables.Asregardsfuturelossofearningstherewerelimitedchangestothemultipliers,butitisanticipatedthatthe8thEditionoftheOgdenTablesisgoingtoincludesomesignificantrevisionand/orguidancefromtheOgdenworkingpartyonthecalculationoffuturelossofearningsespeciallynowthatVictoriaWasshasjoinedtheOgdenworkingparty.

44. ThemethodbywhichtheCourtsassessfuturelossofearningscontinuestobeamovablefeastanditremainstobeseenwhethertheapproachoftheCourtsorpractitionersissimplifiedfollowingthemoredetailedguidanceanticipatedontheseissuesafterthepublicationofthe8thEditionoftheOgdenTables.

By Michael Lemmy & Matthew Snarr

9 St John Street Manchester

M3 4DN

November 2012

Endnotes1 Theauthorsacknowledgethepublicationofthe7thEditionoftheOgdenTablesinOctober2012.Forthesakeof

easeofunderstandingallreferenceswithinthisarticletoOgden6aretobeunderstoodinthatlight.Allexamplesare

calculatedusingthe7thEditionOgdenTables.

2 SeeMoeliker v A Reyrolle & Co Ltd[1977]1WLR132.

3 SeeMcGregoronDamages,18thEdition,Chapter35-095–35-099

4 SeeKemp&KempChapter9-026

5 Interestingly,HHJMcKenna,inthecaseofHindmarch v Virgin Airways[2011]EWHC1227(QB),acasethatwas

heardtogetherwithEvans,awardedHindmarch1year’sSmith v Manchesterawardincircumstanceswhereshewas

earningmorethanshedidasabeautytherapistandwheretherewaslittleevidenceofanyjobinsecurity.

6 Foramoredetailedanalysissee“TheImpactofJudicialDiscretionintheApplicationofNewOgden6Multipliers”

byVictoriaWassand“Ogden6AdjustmentstoWorkingLifeMultipliers”byChrisMeltonQ.C.

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