The Bill for Compensation Andrew Parker Head of Strategic Litigation Beachcroft Wansbroughs

Legacy Politics

The Arculus Report l From Better Routes to Redress (May 2004): l ‘It is a commonly held perception that the United Kingdom is in the grip of a “compensation culture” … It is this perception that causes the real problem.’ l ‘It has got to be right that people who have suffered an injustice through someone else’s negligence should be able to claim redress’ l ‘The case for prompt intervention through rehabilitation could not be better made.’

The Compensation Bill l To succeed and survive, the new Bill will need: l Broad public support l Broad party political support l The Bill should be characterised by: l Balance l Clarity l Common sense l A “joined up” approach l Progress on rehabilitation

The Government l Labour Party Manifesto, April 2005 l ‘Rights must be balanced by responsibilities … we will continue to bear down on abusive or frivolous claims’ l Tony Blair UCL Speech, 26 May 2005 l ‘Wherever possible, we want claims settled informally and quickly, without going to court’ l We cannot eliminate risk. We have to live with it, manage it. Sometimes we have to accept: no one is to blame’

Two Steps at a Time …? l The Compensation Bill will cover: l Regulation of “claims farmers” l Statutory definition of “reasonable care” l Parallel moves may include: l NHS Redress Bill l Legal Services Bill l Incapacity Benefit Reform Bill l An advertising standards clampdown? l Further legislation?

Advertising Standards?

Lessons from Australia?

Lessons from Australia l Civil Liability Act 2002 (NSW) l Apology not an admission l No liability for insignificant risks l No warning for obvious risks l Actual notice of highway defects

Lessons from Australia (2) l Civil Liability Act 2002 (NSW) l Damages threshold? l Limit on claims for gratuitous “care”? l Public authority’s resources? l 5% discount rate for future loss

Rehabilitation l Better Rehabilitation l Early access l NHS in front line l “Legal triage” l Fit for Work l Fit for Life l Good for people l Good for business

Coherent plan? l Rehabilitation l Responsibility l Best practice l Common sense l Sustainability l Consensus

‘Money for claims doesn’t come from heaven. It comes from premiums.’ Charles Breitstadt, Nationwide Insurance (USA)

The Bill for Compensation Andrew Parker Head of Strategic Litigation Beachcroft Wansbroughs