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damages for personal injury: non-pecuniary loss - Law Commission

damages for personal injury: non-pecuniary loss - Law Commission

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approach, and that it would not be impossible to make a broad division between<br />

past and future <strong>non</strong>-<strong>pecuniary</strong> <strong>loss</strong>. We asked consultees whether interest should<br />

be awarded only on <strong>damages</strong> <strong>for</strong> past <strong>non</strong>-<strong>pecuniary</strong> <strong>loss</strong>, and, if so, should this be<br />

coupled with a higher rate of interest, and/or should interest run from an earlier<br />

date.<br />

2.34 The majority, 71 per cent, were not in favour of change. They put <strong>for</strong>ward<br />

arguments on grounds of principle and of practicality. For example, Peter Cane<br />

pointed out that <strong>damages</strong> are not in any direct way calculated with respect to the<br />

period of the claimant’s suffering and so cannot be divided temporally. Separation<br />

of <strong>non</strong>-<strong>pecuniary</strong> <strong>loss</strong> into past and future components was seen as arbitrary,<br />

artificial and inappropriate, and implied that such <strong>damages</strong> can be assessed<br />

scientifically, when this is far from the case. Even consultees who opposed the<br />

payment of any interest tended to take the view that, if it were payable, it should be<br />

payable in respect of both pre- and post- trial <strong>loss</strong>.<br />

2.35 Practical points were decisive <strong>for</strong> many. A distinction would be difficult to draw<br />

and would there<strong>for</strong>e increase costs. An advantage would be given to dilatory<br />

claimants. The courts’ task would be more complicated and an additional<br />

unnecessary ground of appeal would be created.<br />

2.36 The minority favoured a change in practice, essentially on the grounds put <strong>for</strong>ward<br />

in the consultation paper. No consensus emerged, however, on whether this<br />

change should be accompanied by an increase in the interest rate, or a change in<br />

the date from which interest should run.<br />

2.37 In the light of the majority view, and in the absence of a consensus by the<br />

minority on the associated issues concerning interest, we have concluded,<br />

with some reluctance, that the law should not be changed to provide <strong>for</strong><br />

interest to be payable only on <strong>damages</strong> <strong>for</strong> past <strong>non</strong>-<strong>pecuniary</strong> <strong>loss</strong>. We<br />

attach weight to the views expressed concerning the impracticality of change. We<br />

remain convinced, however, that the more principled approach would be to effect<br />

a split. 31<br />

Accordingly, we consider that this concession to claimants should be<br />

reflected in the measures recommended in respect of the date from, and the rate at<br />

which, interest is payable.<br />

2.38 We next considered the date from which interest should be payable. We noted in<br />

the consultation paper that in Jef<strong>for</strong>d v Gee 32<br />

the Court of Appeal chose the date of<br />

service of the writ as the date from which interest should usually be awarded. This<br />

was justified by three considerations, restated with approval by Lord Diplock in<br />

Wright v British Railways Board. 33<br />

First, <strong>non</strong>-<strong>pecuniary</strong> <strong>loss</strong> does not occur all at<br />

once, and is not easily quantified at the date of the accident; secondly, the claimant<br />

is only kept out of his or her money from the time when the defendant ought to<br />

have paid it, which is when the action was brought; thirdly, if the starting point <strong>for</strong><br />

<strong>Commission</strong>, Report on Civil Liability and Compensation <strong>for</strong> Personal Injury (1978)<br />

Cmnd 7054, Volume I, para 747.<br />

31 See on this point McGregor on Damages (16th ed 1997), para 652.<br />

32 [1970] 2 QB 130.<br />

33 [1983] 2 AC 773.<br />

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