Select Committee on Constitutional Affairs Minutes of Evidence


Examination of Witnesses (Questions 100-106)

DAVID FOSKETT QC AND STEPHEN WORTHINGTON

13 DECEMBER 2005

  Q100  Chairman: Do you think it is harder to reach settlements in defamation cases because of the instances of CFAs?

  David Foskett: I simply could not tell you. I simply have no personal experience of that.

  Stephen Worthington: I do not know either. All I can say is that it does not seem to be a deterrent in ordinary personal injury cases. Indeed, in many cases, it seems to be advantageous to an insurer to settle early because, as you heard, for example, in simple RTA cases, the mark-up which is permitted by the various protocols goes up the closer you get to trial. For example, a claimant whose case is settled at an early stage, his solicitor will get only a 12½% mark-up, but if the insurer fights it to trial and loses the mark-up is 100%, so, there, there is certainly an indication for early settlement.

  Q101  Chairman: That system could be applied in defamation?

  Stephen Worthington: Yes, but I would repeat what David said, neither of us is an expert in that field.

  Q102  Chairman: It is not necessarily a bad thing?

  Stephen Worthington: No.

  Chairman: Let us turn to NHS Redress.

  Q103  Barbara Keeley: In the discussion earlier, we said that the Bill does not provide details of the scheme, so if any of these questions go into areas where we do not have details we will understand. What safeguards do you think are necessary in the Bill, or in fact in subsequent regulations, to ensure that potential claimants are not pressured to agree settlements which are not reflective of what they would have been awarded in court?

  David Foskett: I think the short answer to that is independent advice, both legal and medical, at an appropriate time, and by that relatively early in the procedure. Like everybody, I am sure we shall just simply be saying that there is not very much detail at present and when we see the nuts and bolts we will be able to give a rather more definitive view. I think, in terms of the barrister's general position, there must be independent advice on both counts at an appropriate stage to ensure that the claimant is properly advised.

  Stephen Worthington: I think, as was said earlier, the crucial thing to make a scheme like that work is consumer confidence, and in order for the consumers to be confident I think they have got to feel (a) that they understand they are not precluded from going to court if they choose to do so, and (b) that they have access to independent legal advice.

  Q104  Barbara Keeley: Thinking about consistency in quantum of offers, if that is to be ensured, do you think it would be helpful for the NHS Litigation Authority to publish tariff criteria?

  David Foskett: It might be. As you may or may not know, in ordinary personal injuries cases now, the Judicial Studies Board issue some guidelines, they are not binding but they do assist practitioners to advise people about what their claim is worth and assist the judges in determining what their claims are worth. That kind of set of guidelines might well be useful.

  Q105  Barbara Keeley: Do you anticipate a role for barristers, for instance, who often provide advice on quantum in injury cases? The NHS Redress Bill clearly does anticipate some independent legal advice on the process and I just wonder if you foresee a role for barristers in that?

  Stephen Worthington: That may well depend on whether or not the solicitor who is initially instructed, if instructed, is a specialist. If he, or she, is a specialist then there may be no role for the bar. On the other hand, something which perhaps sometimes is overlooked, the bar is frequently a lot cheaper than solicitors, particularly down at the junior level, but if you want a specialist barrister to give an opinion on quantum you may be able to do that more cheaply by going to the bar, a bar solicitor, than if you go and ask for a solicitor to do it all on his, or her, own.

  Q106  Barbara Keeley: One detail which does seem to be there is examples are given, in Clause 3, about future remedial care which may be settled, in terms of a level of compensation being settled for that aspect. Do you think there are going to be difficulties around that aspect of the Bill?

  Stephen Worthington: It is something which the courts are already wrestling with, with periodical payments, because under the relatively new periodical payments regime the court has to ask itself the question as to what a severely injured person's care needs may be into the future and how they should be catered for, whether by a lump sum or, under periodical payments, by so much per annum. The knowledge in that area is fairly sparse at the moment because, as I say, it is a fairly new regime. I think the courts will be able to deal with it and I think, under a regime that is being suggested under the Bill, it ought to be possible too.

  Chairman: Thank you very much indeed. We are very grateful for your time and the care and frankness with which you have answered the questions. Thank you very much.





 
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