Rule 4
11. In this Part—
“the 1996 Act” means the Damages Act 1996(1);
“damages” means damages for future pecuniary loss; and
“periodical payments” means periodical payments under section 2(1) of the 1996 Act(2).
12.—(1) This rule applies to proceedings for damages for personal injury.
(2) The plaintiff in his statement of claim shall state whether he considers periodical payments or a lump sum to be the more appropriate form for all or part of an award of damages.
(3) Where the defendant admits to the whole of any cause, he shall, in his defence, state whether he considers periodical payments or a lump sum to be the more appropriate form for all or part of an award of damages.
(4) Where a statement is given under paragraphs (2) or (3), a party must provide relevant particulars of the circumstances which are relied on in support of the statement.
(5) Where a statement under paragraph (2) or (3) is not given, the court may order a party to make such a statement.
(6) Where the court considers that the statement of claim contains insufficient particulars under paragraph (2) and (3), the court may order a party to provide such further particulars as it considers appropriate.
13. The court shall consider and indicate to the parties as soon as is practicable whether periodical payments or a lump sum is likely to be the more appropriate form for all or part of an award of damages.
14.—(1) When considering
(a)its indication as to whether periodical payments or a lump sum is likely to be the more appropriate form for all or part of an award of damages under rule 3; or
(b)whether to make an order under section 2(1)(a) of the 1996 Act,
the court shall have regard to all the circumstances of the cases and in particular the form of award which best meets the plaintiff’s needs, having regard to the factors set out in paragraph (2).
(2) The factors referred to in paragraph (1) are:
(a)the scale of the annual payments taking into account any deduction for contributory negligence;
(b)the form of award preferred by the plaintiff including:–
(i)the reasons for his preference; and
(ii)the nature of any financial advice he received when considering the form of the award;
(c)the form of award preferred by the defendant including the reasons for the defendant’s preference.
15.—(1) Where the court awards damages in the form of periodical payments, the order must specify:–
(a)the annual amount awarded, how each payment is to be made during the year and at what intervals;
(b)the amount awarded for the future—
(i)loss of earnings and other income; and
(ii)care and medical costs and other recurring or capital costs;
(c)that the plaintiff’s annual future pecuniary losses, as assessed by the court, are to be paid for the duration of the plaintiff’s life, or for such other period as the court orders; and
(d)that the amount of the payments shall vary annually by reference to the retail prices index, unless the court orders otherwise under section 2(9) of the 1996 Act.
(2) Where the court orders that any part of the award shall continue after the plaintiff’s death, for the benefit of the plaintiff’s dependants, the order must also specify the relevant amount and duration of the payments and how each payment is to be made during the year and at what intervals.
(3) Where the court makes an order under paragraph (2), the order must also specify the relevant amount and duration of the payments and how each payment is to be made during the year and at what intervals.
(4) Where an amount awarded under paragraph (1)(b) is to increase or decrease on a certain date, the order must also specify—
(a)the date on which the increase or decrease will take effect; and
(b)the amount of the increase or decrease at current value.
(5) Where the damages for substantial capital purchases are awarded under paragraph (1)(b)(ii), the order must also specify—
(a)the amount of the payments at current value;
(b)when the payments are to be made; and
(c)that the amount of the payments shall be adjusted by reference to the retail prices index, unless the court orders otherwise under section 2(9) of the 1996 Act.
16.—(1) An order for periodical payments shall specify that the payments must be funded in accordance with section 2(4) of the 1996 Act, unless the court orders an alternative method of funding.
(2) Before ordering an alternative method of funding, the court must satisfy itself that:–
(a)the continuity of payment under the order is reasonably secure;
(b)a method of funding provided for under section 2(4) of the 1996 Act is not possible or there are good reasons to justify an alternative method of funding;
(c)that the proposed method of funding can be maintained for the duration of the award or for the proposed duration of the method of funding; and
(d)that the proposed method of funding will meet the level of payment ordered by the court.
(3) An order under paragraph (2) must specify the alternative method of funding.
17. Where the court under section 2(6)(a) of the 1996 Act is satisfied that special circumstances makes an assignment or charge of periodical payments necessary, it shall in deciding whether or not to approve the assignment or charge, also have regard to;
(a)whether the capitalised value of the assignment or charge represents value for money;
(b)whether the assignment or charge is in the claimant’s best interests, taking into account whether these interests can be met in some other way; and
(c)how the claimant will be financially supported following the assignment of the charge.”
Rule 6
15.—(1) Moneys paid into Court may be invested in the following securities—
(a)securities issued by Her Majesty’s Government in the United Kingdom, the Government of Northern Ireland or the Government of the Isle of Man, being fixed-interest securities registered in the United Kingdom or the Isle of Man, Treasury Bills or Tax Reserve Certificates or any variable interest securities issued by Her Majesty’s Government in the United Kingdom and registered in the United Kingdom;
(b)any securities the payment of interest on which is guaranteed by Her Majesty’s Government in the United Kingdom or the Government of Northern Ireland;
(c)fixed-interest or variable interest securities issued in the United Kingdom by any public authority or by any nationalised industry or nationalised undertaking in the United Kingdom;
(d)debentures issued in the United Kingdom by a company incorporated in the United Kingdom, being debentures registered in the United Kingdom;
(e)equity shares in a public limited liability company whose shares are listed in the Official List of the Stock Exchange;
(f)equity shares in an investment trust company;
(g)any units of a gilt unit trust scheme;
(h)any units of an authorised unit trust scheme;
(i)any shares in an open-ended investment company within the meaning of the Open-Ended Investment Companies Regulations (Northern Ireland) 2004(3) or the Open-Ended Investment Companies Regulations 2001(4).
(2) Pending or in lieu of such investment, moneys so paid in may be lodged on deposit receipt in accounts held with the National Debt Commissioners or in accounts held with such bank as the Lord Chancellor may, with the concurrence of the Treasury, designate under section 79 of the 1978 Act.
16.—(1) In rule 15, the expression—
“authorised unit trust scheme” has the meaning assigned by section 237(3) of the Financial Services and Markets Act 2000(5);
“debenture” includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes;
“fixed-interest securities” means securities which under the terms of issue bear a fixed rate of interest;
“gilt unit trust scheme” means an authorised unit trust scheme, or a recognised scheme, the objective of which is—
to invest at least 90% of the property of the scheme in loan stock, bonds or other instruments creating indebtedness which—
are transferable; and
are issued or guaranteed by the government of the United Kingdom or of any other country or territory, by a local authority in the United Kingdom or in a relevant state, or by an international organisation the members of which include the United Kingdom or a relevant state;
to invest the remainder of the property of the scheme in shares, debentures or other instruments creating or acknowledging indebtedness, certificates representing securities or units in a collective investment scheme.
Sub-paragraphs (a) and (b) must be read with—
(i)section 22 of the Financial Services and Markets Act 2000;
(ii)any relevant Order under that section; and
(iii)Schedule 2 to that Act;
“investment trust company” has the meaning assigned by section 842 of the Income and Corporation Taxes Act 1988(6);
“securities” includes shares, debentures, Treasury Bills and Tax Reserve Certificates;
“share” includes stock;
“Treasury Bills” includes bills issued by Her Majesty’s Government in the United Kingdom and Northern Ireland Treasury Bills;
“variable-interest securities” means securities which under the terms of issue bear variable rate of interest.
(2) In this rule, the expression “relevant state” means Austria, Finland, Iceland, Liechtenstein, Norway, Sweden or a state other than the United Kingdom State which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2 May 1992 as it has effect for the time being.”
1996 c.48 to which the most recent relevant amendments were made by sections 100 and 101 of the Courts Act 2003 (c.39)
Section 2 is substituted by section 100 of the Courts Act 2003 (c.39)