Solid
groundwork has been carried out in APIL to develop a campaign to
persuade the Government against raising the small claims court limit
for personal injury cases. As new president of this 5,000 strong
organisation, I support this campaign to persuade the Government
that such a move would be nothing short of a disaster for access
to justice.
The suggestion that the
limit should be raised was first mooted by the Better Regulation
Task Force – the independent advisory group charged with looking
at the regulatory aspects of litigation and compensation. One of
the recommendations made by the task force was that research should
be conducted into the impact of raising the small claims court limit
for personal injury cases. The Department for Constitutional Affairs
responded positively to this suggestion, and called upon all parties
to submit evidence about the pros and cons of increasing the limit.
APIL developed its own
concerted campaign – including research which has since been
presented to the Government – in an attempt to highlight the
very real problems that raising the limit would have on injured
people.
APIL vehemently believes
there is no place for personal injury cases in the small claims
court. Presently, only personal injury claim which could lead to
a payment of general damages for pain and suffering less than £1000
are subject to the small claims procedure, where no legal costs
are recoverable. But personal injury claims involve complex special
procedural requirements compared with most other claims, as well
as complex evidence which almost always demand legal guidance and
advice. The costs regime in the small claims track does not provide
for this facility.
In addition, relegation
of personal injury claims into the small claims track would fail
to ensure that litigants are on an equal footing when most personal
injury claims are made against businesses or insured defendants
who are, more often than not, legally represented even in the small
claims court. This obviously tilts the playing field against the
claimant and risks the negligent party avoiding its liability and
responsibility.
APIL commissioned a MORI
poll at the beginning of the year to find out how the public would
feel about pursuing a claim should the limit be raised. The results
of the poll made it even more apparent that access to justice would
be seriously affected if the Government decides to raise the limit.
MORI interviewed more
than 2,000 adults across Great Britain. The poll found the majority
of those surveyed would not seek justice through the courts if the
limit were to be raised. 64 per cent of people said they would be
unlikely to pursue their case without an independent solicitor,
and 80 per cent of people believed that without an independent solicitor
to help them they would not receive the right amount of compensation
from an insurer.
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It
is wholly unacceptable to expect an injured person to run a case.
Most people will know nothing about having to obtain medical reports,
for example, let alone building a case to prove the other side injured
them through negligence. How can someone with no legal training
be expected to work out how much compensation they will need for
future care, or the amount of earnings they may be entitled to claim
through being unable to work? We know from the MORI poll that 74
per cent people felt they would not be able to work out how much
compensation they would be entitled to, if they had to work it out
without the help of an independent solicitor.
To support the
MORI poll, APIL conducted its own research amongst its membership,
and found that if the limit were to increase, 70 per cent of personal
injury claims would be forced into the small claims court. The impact
on justice – and indeed solicitors’ businesses - would
be devastating.
All of this
evidence points to the fact that people would simply not pursue
their rights if the limit were to be increased: there would be too
many hoops for injured people to jump through to obtain compensation.
In the review
of Lord Woolf, a special limit for personal injury cases was won,
as a reflection that ours is a technical area with many pitfalls
for unrepresented litigants in person, when they are faced with
the experience of institutional defendants with resources on the
other side. This unequal playing field offended his overriding objective,
hence the special rule. In the years since the new civil procedure
rules came into operation, nothing, least of all the value of money
in these days of low inflation, has changed – the arguments
for the present small claims limit for personal injury cases remain
as powerful today as they were 6 years ago. For access to justice
to remain available to all injured people, the small claims limit
should remain as it is now.
Allan Gore QC, president, Association of Personal Injury Lawyers
(APIL)
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