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(d) enabling a party to apply for a variation of provision included | |
under paragraph (a), (b) or (c). | |
(6) Where a person has a right to receive payments under an order for | |
periodical payments, or where an arrangement is entered into in | |
satisfaction of an order which gives a person a right to receive | 5 |
periodical payments, that person’s right under the order or | |
arrangement may not be assigned or charged without the approval of | |
the court which made the order; and— | |
(a) a court shall not approve an assignment or charge unless | |
satisfied that special circumstances make it necessary, and | 10 |
(b) a purported assignment or charge, or agreement to assign or | |
charge, is void unless approved by the court. | |
(7) Where an order is made for periodical payments, an alteration of the | |
method by which the payments are made shall be treated as a breach of | |
the order (whether or not the method was specified under subsection | 15 |
(5)(b)) unless— | |
(a) the court which made the order declares its satisfaction that the | |
continuity of payment under the new method is reasonably | |
secure, | |
(b) the new method is protected by a guarantee given under section | 20 |
6 of or the Schedule to this Act, | |
(c) the new method is protected by a scheme under section 213 of | |
the Financial Services and Markets Act 2000 (compensation) | |
(whether or not as modified by section 4 of this Act), or | |
(d) the source of payment under the new method is a government | 25 |
or health service body. | |
(8) An order for periodical payments shall be treated as providing for the | |
amount of payments to vary by reference to the retail prices index | |
(within the meaning of section 833(2) of the Income and Corporation | |
Taxes Act 1988) at such times, and in such a manner, as may be | 30 |
determined by or in accordance with Civil Procedure Rules. | |
(9) But an order for periodical payments may include provision— | |
(a) disapplying subsection (8), or | |
(b) modifying the effect of subsection (8). | |
2A Periodical payments: supplementary | 35 |
(1) Civil Procedure Rules may require a court to take specified matters into | |
account in considering— | |
(a) whether to order periodical payments; | |
(b) the security of the continuity of payment; | |
(c) whether to approve an assignment or charge. | 40 |
(2) For the purposes of section 2(4)(c) and (7)(d) “government or health | |
service body” means a body designated as a government body or a | |
health service body by order made by the Lord Chancellor. | |
(3) An order under subsection (2)— | |
(a) shall be made by statutory instrument, and | 45 |
(b) shall be subject to annulment in pursuance of a resolution of | |
either House of Parliament. | |
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(4) Section 2(6) is without prejudice to a person’s power to assign a right to | |
the scheme manager established under section 212 of the Financial | |
Services and Markets Act 2000. | |
(5) In section 2 “damages” includes an interim payment which a court | |
orders a defendant to make to a claimant. | 5 |
(6) In the application of this section to Northern Ireland— | |
(a) a reference to Civil Procedure Rules shall be taken as a reference | |
to rules of court, and | |
(b) a reference to a claimant shall be taken as a reference to a | |
plaintiff. | 10 |
(7) Section 2 is without prejudice to any power exercisable apart from that | |
section. | |
2B Variation of orders and settlements | |
(1) The Lord Chancellor may by order enable a court which has made an | |
order for periodical payments to vary the order in specified | 15 |
circumstances (otherwise than in accordance with section 2(5)(d)). | |
(2) The Lord Chancellor may by order enable a court in specified | |
circumstances to vary the terms on which a claim or action for damages | |
for personal injury is settled by agreement between the parties if the | |
agreement— | 20 |
(a) provides for periodical payments, and | |
(b) expressly permits a party to apply to a court for variation in | |
those circumstances. | |
(3) An order under this section may make provision— | |
(a) which operates wholly or partly by reference to a condition or | 25 |
other term of the court’s order or of the agreement; | |
(b) about the nature of an order which may be made by a court on | |
a variation; | |
(c) about the matters to be taken into account on considering | |
variation; | 30 |
(d) of a kind that could be made by Civil Procedure Rules or, in | |
relation to Northern Ireland, rules of court (and which may be | |
expressed to be with or without prejudice to the power to make | |
those rules). | |
(4) An order under this section may apply (with or without modification) | 35 |
or amend an enactment about provisional or further damages. | |
(5) An order under this section shall be subject to any order under section | |
1 of the Courts and Legal Services Act 1990 (allocation between High | |
Court and county courts). | |
(6) An order under this section— | 40 |
(a) shall be made by statutory instrument, | |
(b) may not be made unless the Lord Chancellor has consulted such | |
persons as he thinks appropriate, | |
(c) may not be made unless a draft has been laid before and | |
approved by resolution of each House of Parliament, and | 45 |
(d) may include transitional, consequential or incidental provision. | |
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(7) In subsection (4)— | |
“provisional damages” means damages awarded by virtue of | |
subsection (2)(a) of section 32A of the Supreme Court Act 1981 | |
or section 51 of the County Courts Act 1984 (or, in relation to | |
Northern Ireland, paragraph 10(2)(a) of Schedule 6 to the | 5 |
Administration of Justice Act 1982), and | |
“further damages” means damages awarded by virtue of | |
subsection (2)(b) of either of those sections (or, in relation to | |
Northern Ireland, paragraph 10(2)(b) of Schedule 6 to the | |
Administration of Justice Act 1982).” | 10 |
(2) In section 329AA of the Income and Corporation Taxes Act 1988 (c. 1) | |
(periodical payments)— | |
(a) for subsection (1) substitute— | |
“(1) Periodical payments shall not for the purposes of income tax be | |
regarded as the income of any of the persons mentioned in | 15 |
subsection (2) below (and shall be paid without deduction | |
under section 348(1)(b) or 349(1)). | |
(1A) In subsection (1) “periodical payments” means periodical | |
payments made pursuant to— | |
(a) an order of a court in so far as it is made in reliance on | 20 |
section 2 of the Damages Act 1996 (including an order as | |
varied), or | |
(b) an agreement in so far as it settles a claim or action for | |
damages in respect of personal injury (including an | |
agreement as varied).”, | 25 |
(b) in subsection (3) for “if the agreement or order mentioned in that | |
subsection or a subsequent agreement so provides,” substitute “if the | |
order, agreement or undertaking mentioned in subsection (1A), or a | |
varying order, agreement or undertaking, so provides or permits,”, | |
(c) in subsection (6) after “claim or action for” insert “damages in respect | 30 |
of”, | |
(d) for subsection (7) substitute— | |
“(7) For the purposes of subsection (1A) above— | |
(a) the reference to an order of a court made in reliance on | |
section 2 of the Damages Act 1996 includes an order of a | 35 |
court outside the United Kingdom which is similar to an | |
order made in reliance on that section, | |
(b) the reference to an agreement settling a claim or action | |
includes a reference to an agreement to make payments | |
on account of damages that may be awarded in a claim | 40 |
or action, and | |
(c) the reference to an agreement in so far as it settles a | |
claim or action for damages in respect of personal injury | |
also includes a reference to an undertaking given by the | |
Motor Insurers’ Bureau (being the company of that | 45 |
name incorporated on 14th June 1946 under the | |
Companies Act 1929), or an Article 75 insurer under the | |
Bureau’s Articles of Association, in relation to a claim or | |
action in respect of personal injury.”, and | |
(e) omit subsection (8). | 50 |
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(3) In section 329AB(1) of that Act (statutory compensation) for “subsection (1)” | |
substitute “subsection (1A)”. | |
(4) In this section— | |
(a) subsection (1) shall extend only to England and Wales and Northern | |
Ireland, and | 5 |
(b) the remainder shall extend to the whole of the United Kingdom. | |
101 Periodical payments: security | |
(1) For sections 4 and 5 of the Damages Act 1996 (c. 48) (enhanced protection for | |
structured settlement annuitant) substitute— | |
“4 Enhanced protection for periodical payments | 10 |
(1) Subsection (2) applies where— | |
(a) a person has a right to receive periodical payments, and | |
(b) his right is protected by a scheme under section 213 of the | |
Financial Services and Markets Act 2000 (compensation), but | |
only as to part of the payments. | 15 |
(2) The protection provided by the scheme shall extend by virtue of this | |
section to the whole of the payments. | |
(3) Subsection (4) applies where— | |
(a) one person (“the claimant”) has a right to receive periodical | |
payments from another person (“the defendant”), | 20 |
(b) a third person (“the insurer”) is required by or in pursuance of | |
an arrangement entered into with the defendant (whether or | |
not together with other persons and whether before or after the | |
creation of the claimant’s right) to make payments in | |
satisfaction of the claimant’s right or for the purpose of enabling | 25 |
it to be satisfied, and | |
(c) the claimant’s right to receive the payments would be wholly or | |
partly protected by a scheme under section 213 of the Financial | |
Services and Markets Act 2000 if it arose from an arrangement | |
of the same kind as that mentioned in paragraph (b) but made | 30 |
between the claimant and the insurer. | |
(4) For the purposes of the scheme under section 213 of that Act— | |
(a) the claimant shall be treated as having a right to receive the | |
payments from the insurer under an arrangement of the same | |
kind as that mentioned in subsection (3)(b), | 35 |
(b) the protection under the scheme in respect of those payments | |
shall extend by virtue of this section to the whole of the | |
payments, and | |
(c) no person other than the claimant shall be entitled to protection | |
under the scheme in respect of the payments. | 40 |
(5) In this section “periodical payments” means periodical payments made | |
pursuant to— | |
(a) an order of a court in so far as it is made in reliance on section 2 | |
above (including an order as varied), or | |
(b) an agreement in so far as it settles a claim or action for damages | 45 |
in respect of personal injury (including an agreement as varied). | |
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(6) In subsection (5)(b) the reference to an agreement in so far as it settles a | |
claim or action for damages in respect of personal injury includes a | |
reference to an undertaking given by the Motor Insurers’ Bureau (being | |
the company of that name incorporated on 14th June 1946 under the | |
Companies Act 1929), or an Article 75 insurer under the Bureau’s | 5 |
Articles of Association, in relation to a claim or action in respect of | |
personal injury.” | |
(2) In section 6(1) of the Damages Act 1996 (c. 48) (guarantee for public sector | |
settlement) for the words “on terms corresponding to those of a structured | |
settlement as defined in section 5 above except that the person to whom the | 10 |
payments are to be made is not to receive them as mentioned in subsection | |
(1)(b) of that section” substitute “on terms whereby the damages are to consist | |
wholly or partly of periodical payments”. | |
(3) In paragraph 1(a) of the Schedule to that Act (guarantee by Northern Ireland | |
Department for public sector settlement) for the words “on terms | 15 |
corresponding to those of a structured settlement as defined in section 5 of this | |
Act except that the person to whom the payments are to be made is not to | |
receive them as mentioned in subsection (1)(b) of that section” substitute “on | |
terms whereby the damages are to consist wholly or partly of periodical | |
payments”. | 20 |
(4) Where an individual who has a right to receive periodical payments becomes | |
bankrupt— | |
(a) the payments shall be treated for the purposes of the bankruptcy as | |
income of the bankrupt (but without prejudice to section 329AA of the | |
Income and Corporation Taxes Act 1988 (c. 1)), | 25 |
(b) neither the right to receive periodical payments, nor any property or | |
arrangement designed to protect continuity of the periodical payments, | |
shall form part of the bankrupt’s estate for the purposes of the | |
Insolvency Act 1986 (c. 45) or the Insolvency (Northern Ireland) Order | |
1989 (S.I. 1989/2405 (N.I. 19)), | 30 |
(c) an income payments order may not be made in respect of any part of | |
the periodical payments identified (in the order or agreement under | |
which the payments are made) as relating wholly to expenditure likely | |
to be incurred by or for the individual as a result of the personal injury | |
concerned, | 35 |
(d) nothing in section 2 of the Damages Act 1996 (c. 48) shall prevent a | |
court from making an income payments order (subject to paragraph | |
(c)), and | |
(e) nothing in section 2 of that Act shall prevent entry into an income | |
payments agreement. | 40 |
(5) In subsection (4)— | |
“bankrupt” has the meaning given by section 381 of the Insolvency Act | |
1986 or Article 9 of the Insolvency (Northern Ireland) Order 1989 (S.I. | |
1989/2405 (N.I. 19)), | |
“income payments agreement” means an agreement under section 310A | 45 |
of that Act or equivalent legislation for Northern Ireland, | |
“income payments order” means an order under section 310 of that Act or | |
equivalent legislation for Northern Ireland, and | |
“periodical payments” means periodical payments awarded or agreed, or | |
in so far as awarded or agreed, as damages for future pecuniary loss | 50 |
by— | |
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(a) an order of a court made in reliance on section 2 of the Damages | |
Act 1996 (including an order as varied), or | |
(b) an agreement settling a claim or action for damages in respect | |
of personal injury (including an agreement as varied). | |
(6) In this section— | 5 |
(a) subsections (1) to (3) shall extend to the whole of the United Kingdom, | |
and | |
(b) subsections (4) and (5) shall extend only to England and Wales and | |
Northern Ireland. | |
Provisions relating to Northern Ireland | 10 |
102 Power to alter judicial titles: Northern Ireland | |
(1) The Lord Chancellor may by order— | |
(a) alter the name of any of the offices of the Supreme Court of Judicature | |
of Northern Ireland or of the county courts in Northern Ireland which | |
are listed in subsection (2); | 15 |
(b) provide for or alter the way in which the holders of any of those offices | |
are to be styled. | |
(2) The offices are— | |
County court judge | |
Deputy judge of the county court | 20 |
District Judge | |
Judge of the Court of Appeal | |
Lord Chief Justice | |
Master (Bankruptcy) | |
Master (Care and Protection) | 25 |
Master (Chancery) | |
Master (Enforcement of Judgments) | |
Master (High Court) | |
Master (Probate and Matrimonial) | |
Master (Queen’s Bench and Appeals) | 30 |
Master (Taxing Office) | |
Presiding judge for the county courts | |
Puisne judge of the High Court. | |
(3) The Lord Chancellor may also by order provide for or alter the way in which | |
deputies or temporary additional officers appointed under section 74(1) of the | 35 |
1978 Act are to be styled. | |
(4) Before making an order under this section the Lord Chancellor must consult | |
the Lord Chief Justice. | |
(5) An order under this section may make such provision as the Lord Chancellor | |
considers necessary in consequence of any provision made under subsection | 40 |
(1) or (3). | |
(6) The provision that may be made under subsection (5) includes provision | |
amending, repealing or revoking any enactment. | |
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(7) The power to make an order under this section is exercisable by statutory rule | |
for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. | |
1979/1573 (N.I. 12)). | |
(8) An order under this section is subject to annulment in pursuance of a | |
resolution of either House of Parliament in the same manner as a statutory | 5 |
instrument; and section 5 of the Statutory Instruments Act 1946 (c. 36) applies | |
accordingly. | |
(9) “The 1978 Act” means the Judicature (Northern Ireland) Act 1978 (c. 23). | |
103 Official Solicitor of Northern Ireland | |
(1) In Schedule 3 to the 1978 Act (statutory offices) the entry relating to the Official | 10 |
Solicitor ceases to have effect. | |
(2) Amend section 75 of the 1978 Act (Official Solicitor) as follows. | |
(3) For subsection (3) substitute— | |
“(3) A person shall be qualified for appointment as Official Solicitor if he is | |
a solicitor of the Supreme Court of at least 7 years’ standing.” | 15 |
(4) After subsection (5) insert— | |
“(6) The Official Solicitor shall hold and vacate office in accordance with the | |
terms of his appointment (which may include provision about | |
retirement, dismissal or resignation). | |
(7) The Lord Chancellor may pay to the Official Solicitor such | 20 |
remuneration and allowances as the Lord Chancellor may determine | |
with the consent of the Treasury. | |
(8) Service as the Official Solicitor is employment in the civil service of the | |
State for the purposes of section 1 of the Superannuation Act 1972 | |
(Principal Civil Service Pension Scheme). | 25 |
(9) While the office of Official Solicitor is vacant or the Official Solicitor is | |
unable or unwilling to act, the Lord Chancellor may, after consultation | |
with the Lord Chief Justice, appoint a person as temporary Official | |
Solicitor; and the temporary Official Solicitor— | |
(a) may be appointed only if qualified for appointment as Official | 30 |
Solicitor, | |
(b) shall have all the powers and duties of the Official Solicitor, and | |
(c) may be paid remuneration and allowances by the Lord | |
Chancellor with the consent of the Treasury.” | |
(5) In section 68 of the 1978 Act (Supreme Court: departments)— | 35 |
(a) in subsection (2)(b) for “statutory officer” substitute “officer”, and | |
(b) for subsection (4) substitute— | |
“(4) The officer supervising a department shall discharge his | |
functions in accordance with directions given by the Lord | |
Chancellor.” | 40 |
(6) In section 73 of the 1978 Act (restrictions on practice) subsection (2) (and the | |
words “Subject to subsection (2),”) cease to have effect. | |
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