The National Health Service (Existing Liabilities Scheme) Regulations 1996

Payments under the Scheme

6.—(1) Where, in any year, a qualifying liability falls to be met by any eligible body, the Secretary of State may, subject to paragraph (2), pay to that body an amount to be determined by him in accordance with paragraph (3).

(2) No payment shall be made under paragraph (1), except to such extent as the Secretary of State may determine, in respect of—

(a) any liability admitted by the eligible body without the consent in writing of the Secretary of State;

(b) any liability determined by a Court in proceedings conducted by the eligible body otherwise than in consultation with the Secretary of State; or

(c) any payment which the eligible body has agreed to make otherwise than in the course of legal proceedings, or in consequence of its having compromised legal proceedings, without the consent in writing of the Secretary of State.

(3) The amount of any payment to an eligible body under paragraph (1) shall be determined by reference to—

(a) where an award of damages has been made against the eligible body by a Court, the amount of that award, together with the amounts of the legal and associated costs awarded to the plaintiff and of any such costs incurred by the eligible body;

(b) where legal proceedings have been compromised by the eligible body, the amount of—

(i) any sum paid by the eligible body in relation to the plaintiff’s claim for damages,

(ii) the eligible body’s contribution towards any legal and associated costs incurred by the plaintiff; and

(iii) any such costs incurred by the eligible body;

(c) where, in any legal proceedings, a Court has declined to award damages against the eligible body, the amount of any legal and associated costs incurred by the eligible body, to the extent that such costs are not recoverable from the plaintiff or from the Legal Aid Board under section 18 of the Legal Aid Act 1988;(1)

(d) where the eligible body has agreed to make a payment, otherwise than in the course of legal proceedings, in settlement of the plaintiff’s claim, the amount of that payment.

(1)

1988 c. 34.