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Atiyah’s Accidents, Compensation and the Law Seventh Edition
Since its first publication, Accidents, Compensation and the Law has beenrecognised as the leading treatment of the law of personal injuries compensationand the social, political and economic issues surrounding it. The seventh editionof this classic work explores recent momentous changes in personal injury lawand practice and puts them into broad perspective. Most significantly, itexamines developments affecting the financing and conduct of personal injuryclaiming: the abolition of legal aid for most personal injury claims; the increasinguse of conditional fee agreements and after-the-event insurance; the meteoricrise and impending regulation of the claims management industry. Complaintsthat Britain is a ‘compensation culture’ suffering an ‘insurance crisis’ areinvestigated. New statistics on tort claims are discussed, providing fresh insightsinto the evolution of the tort system which, despite recent reforms, remainsdeeply flawed and ripe for radical reform.
Peter Cane has been Professor of Law in the Research School of SocialSciences at the Australian National University since 1997. For twenty yearspreviously he taught law at Corpus Christi College Oxford. His main researchinterests are in the law of obligations, especially tort law; public law, especiallyadministrative law; and legal theory. Recent publications include Responsibilityin Law and Morality (2002) and The Oxford Handbook of Legal Studies (editedwith Mark Tushnet) (2003).
Patrick Atiyah is one of the leading common lawyers of his generation. Untilhis early retirement in 1988 he was Professor of English Law at OxfordUniversity. His published writings range widely over topics in tort law, contractlaw, legal history and legal theory; and include The Sale of Goods (11th editionwith J N Harpers and H L McQueen, 2005), The Rise and Fall of Freedom ofContract (1985) and The Damages Lottery (1997).
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Cambridge University Press978-0-521-68931-1 - Atiyah’s Accidents, Compensation and the Law, Seventh EditionPeter CaneFrontmatterMore information
The Law in Context Series
Editors: William Twining (University College London) and
Christopher McCrudden (Lincoln College, Oxford)
Since 1970 the Law in Context series has been in the forefront of the movement to broaden
the study of law. It has been a vehicle for the publication of innovative scholarly books that
treat law and legal phenomena critically in their social, political and economic contexts
from a variety of perspectives. The series particularly aims to publish scholarly legal
writing that brings fresh perspectives to bear on new and existing areas of law taught in
universities. A contextual approach involves treating legal subjects broadly, using materi-
als from other social sciences, and from any other discipline that helps to explain the oper-
ation in practice of the subject under discussion. It is hoped that this orientation is at once
more stimulating and more realistic than the bare exposition of legal rules. The series
includes original books that have a different emphasis from traditional legal textbooks,
while maintaining the same high standards of scholarship. They are written primarily for
undergraduate and graduate students of law and of other disciplines, but most also appeal
to a wider readership. In the past, most books in the series have focused on English law,
but recent publications include books on European law, globalisation, transnational legal
processes, and comparative law.
Books in the Series
Anderson, Schum & Twining: Analysis of Evidence
Ashworth: Sentencing and Criminal Justice
Barton & Douglas: Law and Parenthood
Beecher-Monas: Evaluating Scientific Evidence: An Interdisciplinary Framework for
Intellectual Due Process
Bell: French Legal Cultures
Bercusson: European Labour Law
Birkinshaw: European Public Law
Birkinshaw: Freedom of Information: The Law, the Practice and the Ideal
Cane: Atiyah’s Accidents, Compensation and the Law
Clarke & Kohler: Property Law: Commentary and Materials
Collins: The Law of Contract
Davies: Perspectives on Labour Law
Dembour: Who Believes in Human Rights?: The European Convention in Question
de Sousa Santos: Toward a New Legal Common Sense
Diduck: Law’s Families
Elworthy & Holder: Environmental Protection: Text and Materials
Fortin: Children’s Rights and the Developing Law
Glover-Thomas: Reconstructing Mental Health Law and Policy
Gobert & Punch: Rethinking Corporate Crime
Harlow & Rawlings: Law and Administration
Harris: An Introduction to Law
Harris, Campbell & Halson Remedies in Contract and Tort
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Harvey: Seeking Asylum in the UK: Problems and Prospects
Hervey & McHale: Health Law and the European Union
Lacey & Wells: Reconstructing Criminal Law
Lewis: Choice and the Legal Order: Rising above Politics
Likosky: Transnational Legal Processes
Maughan & Webb: Lawyering Skills and the Legal Process
McGlynn: Families and the European Union: Law, Politics and Pluralism
Moffat: Trusts Law: Text and Materials
Norrie: Crime, Reason and History
O’Dair: Legal Ethics
Oliver: Common Values and the Public-Private Divide
Oliver & Drewry: The Law and Parliament
Picciotto: International Business Taxation
Reed: Internet Law: Text and Materials
Richardson: Law, Process and Custody
Roberts & Palmer: Dispute Processes: ADR and the Primary Forms of Decision-Making
Scott & Black: Cranston’s Consumers and the Law
Seneviratne: Ombudsmen: Public Services and Administrative Justice
Stapleton: Product Liability
Tamanaha: The Struggle for Law as a Means to an End
Turpin: British Government and the Constitution: Text, Cases and Materials
Twining: Globalisation and Legal Theory
Twining: Rethinking Evidence
Twining & Miers: How to Do Things with Rules
Ward: A Critical Introduction to European Law
Ward: Shakespeare and Legal Imagination
Zander: Cases and Materials on the English Legal System
Zander: The Law-Making Process
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Atiyah’s Accidents,Compensation and theLawSeventh Edition
Peter Cane
Research School of Social SciencesAustralian National University
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CAMBRIDGE UNIVERSITY PRESS
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Published in the United States of America by Cambridge University Press, New York
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© Cambridge University Press 2006
This publication is in copyright. Subject to statutory exception
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First published 2006
Reprinted 2008
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the accuracy of such information thereafter.
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Contents
Preface xivList of abbreviations xviiList of tables xxiiTable of legislation xxiiiTable of cases xxviii
Part One: The Issues in Perspective
1 Introduction: surveying the field 3
1.1 Compensation for accidents 31.2 Natural and human causes 6
1.2.1 The issue 61.2.2 Society’s ‘responsibility’ for human causes 81.2.3 Protecting reasonable expectations 91.2.4 Egalitarianism and the problem of drawing the line 10
1.3 Mixed systems in a mixed society 111.4 Some facts and figures 18
1.4.1 Accidents causing personal injury or death 181.4.2 Death and disability from other causes 201.4.3 The prevalence of disability 211.4.4 The effect of disability on income 211.4.5 Distribution and sources of compensation 221.4.6 The more serious and the less serious 25
Part Two: The Tort System in Theory
2 Fault as a basis of liability 33
2.1 The conceptual basis of tort law 332.2 Negligence as a basis of liability 342.3 The fault principle 352.4 Negligence as fault 36
2.4.1 A question of fact? 362.4.2 The nature of negligence 40
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2.4.3 Probability of harm 422.4.4 Likely magnitude of harm 432.4.5 The value of the activity and the cost of the
precautions needed to avoid harm 452.4.6 The function of the negligence formula 462.4.7 Foreseeability 472.4.8 The objective standard of care 482.4.9 Negligence in design and negligence in operation 50
2.5 Conduct of the claimant 532.5.1 Contributory negligence 542.5.2 Volenti non fit injuria 612.5.3 Illegality 65
3 The scope of the tort of negligence 68
3.1 The nature of the duty of care 683.2 Specific duty situations 70
3.2.1 Common situations in which duties of care have been imposed 70
3.2.2 The distinction between acts and omissions 723.3 Nervous shock 843.4 Family claims 89
4 Departures from the fault principle 92
4.1 Fault liability and strict liability 924.2 ‘Procedural’ devices 944.3 Breach of statutory duty 954.4 Contractual duties 994.5 Rylands v. Fletcher, nuisance and animals 1004.6 Joint liability 1014.7 Vicarious liability 1024.8 Products liability 1034.9 Proposals to extend strict liability 105
4.9.1 Dangerous things and activities 1054.9.2 Railway accidents 106
4.10 Ex gratia compensation schemes 1074.10.1 Vaccine damage 1074.10.2 HIV 1084.10.3 Hepatits C 1084.10.4 Variant CJD 109
5 Causation and remoteness of damage 110
5.1 Introduction 1105.2 Factual causation 111
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5.2.1 Proving causation 1115.2.2 Causing and increasing the risk of harm 1125.2.3 Omissions 1155.2.4 Multiple causal factors 116
5.3 Limits on the liability of factual causes 1185.3.1 Legal causation 1185.3.2 Damage not within the risk 1255.3.3 Foreseeability again 127
5.4 Conclusion 129
6 Damages for personal injury and death 130
6.1 The lump sum: predicting the future 1306.1.1 Personal injury cases 1306.1.2 Fatal cases 1326.1.3 Variation of awards after trial 1356.1.4 Suitability of lump sums 1376.1.5 Alternatives to lump sums 139
6.2 Full compensation 1436.2.1 Interest 1456.2.2 Lost earnings and support 1466.2.3 Medical and other expenses 149
6.3 Full compensation for lost ‘earnings’: is it justified? 1526.3.1 The earnings-related principle 1526.3.2 The hundred-per cent principle 156
6.4 Full compensation: the commitment in practice 1576.5 Intangible losses 161
6.5.1 Assessing intangible losses 1616.5.2 The tariff system 1666.5.3 Subjective factors 1706.5.4 Should damages be payable for intangible losses? 171
6.6 Overall maxima 1736.7 Punitive damages 173
7 An appraisal of the fault principle 175
7.1 The compensation payable bears no relation to the degree of fault 175
7.2 The compensation bears no relation to the means ofthe tortfeasor 177
7.3 A harm-doer may be legally liable without being morally culpable and vice versa 1797.3.1 Collective liability 1797.3.2 The objective definition of fault 1807.3.3 Moral culpability without legal liability 182
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7.3.4 The fault principle and popular morality 1837.4 The fault principle pays little attention to the conduct
or needs of the victim 1837.5 Justice may require payment of compensation without fault 1857.6 It is often difficult to adjudicate allegations of fault 1877.7 The fault principle contributes to a culture of blaming and
discourages people from taking responsibility for their own lives 192
Part Three: The Tort System in Operation
8 Claims and claimants 201
8.1 Accident victims and tort claimants 2018.1.1 Cases reaching trial 2018.1.2 Cases set down for trial 2038.1.3 Actions commenced 2038.1.4 All tort claims 204
8.2 Why do people (not) make tort claims? 2068.2.1 Some research findings 2068.2.2 Alternative remedies 2078.2.3 Claims consciousness 209
8.3 Particular types of claims 2148.3.1 Road accidents 2148.3.2 Industrial injuries and illnesses 2168.3.3 Public liability claims 2188.3.4 Medical injuries 2198.3.5 Group claims 221
9 Tortfeasors and insurers 222
9.1 Defendants 2229.2 Individuals as tort defendants 2229.3 Employers and corporations as tort defendants 2289.4 Insurers 2339.5 The nature of liability insurance 2349.6 Some problems of liability insurance 2399.7 First-party insurance for the benefit of others 2449.8 The impact of liability insurance on the law 245
9.8.1 Statutory provisions 2459.8.2 The impact of insurance on the common law 248
9.9 The Motor Insurers’ Bureau 255
10 Trials and settlements 260
10.1 The importance of settlements 26010.2 Obtaining legal assistance and financing tort claims 261
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10.3 The course of negotiations 26810.3.1 Individual claims 26910.3.2 Group claims 274
10.4 When negotiations break down 27810.5 The time taken to achieve a settlement 28110.6 The amount of compensation 284
Part Four: Other Compensation Systems11 First-party insurance 291
11.1 Types of first-party insurance 29111.2 First-party insurance compared with tort liability 295
12 Compensation for criminal injuries 300
12.1 Tort claims 30012.2 Compensation orders 30112.3 Other sources of compensation 30312.4 Criminal injuries compensation scheme 304
12.4.1 Justifications for the Scheme 30412.4.2 The scope of the scheme 30912.4.3 Comparison between the CICS and tort liability 31612.4.4 Administration 32412.4.5 Claims consciousness 326
13 The social security system 328
13.1 Foundations of the social security system 32813.1.1 Workers’ compensation 32813.1.2 National insurance 330
13.2 The Beveridge Report and the 1946 Acts 33113.3 Developments since 1946 33313.4 The industrial injuries system 338
13.4.1 The scope of the system 33813.4.2 Accidents and diseases 34013.4.3 Benefits 34213.4.4 Administration 35113.4.5 The tort system and the IIS compared 355
13.5 Non-work-related disablement 35513.6 Preferences within State provision for the disabled 35613.7 Income-support benefits 358
13.7.1 Benefits 35813.7.2 Administration 360
13.8 Fraud and abuse 360
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14 Other forms of assistance 363
14.1 The taxation system 36314.2 Social services 365
14.2.1 Employment 36614.2.2 Mobility 36914.2.3 Housing and residential accommodation 37014.2.4 Other social services 371
14.3 Conclusion 372
Part Five: The Overall Picture15 A plethora of systems 377
15.1 The concept of over-compensation 37715.2 The choice of compensation system 37815.3 Subrogation and recoupment 38015.4 Tort damages and other compensation 385
15.4.1 General principles 38515.4.2 Tort damages and sick pay 38715.4.3 Tort damages and personal insurance 38815.4.4 Tort damages and charitable payments 38915.4.5 Tort damages and social security benefits 390
15.5 Criminal injuries compensation 394
16 The cost of compensation and who pays it 395
16.1 The cost of tort compensation 39516.2 Costs not paid through the tort system 402
16.2.1 The cost of social services 40216.2.2 The cost of the social security system 40316.2.3 Other sources of compensation 40516.2.4 Costs in perspective 405
16.3 The cost of criminal injuries compensation 406
17 The functions of compensation systems 408
17.1 Compensation 40817.1.1 Some preliminary questions 40817.1.2 The meaning of ‘compensation’ 41117.1.3 Compensation and compensation systems 414
17.2 Distribution of losses 41517.2.1 What should be distributed? 41517.2.2 How should it be distributed? 416
17.3 The allocation of risks 41817.4 Punishment 41917.5 Corrective justice 421
xii Contents
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17.6 Vindication or satisfaction 42217.7 Deterrence and prevention 424
17.7.1 Rules and standards of behaviour 42517.7.2 Accident prevention via insurance 433
17.8 General deterrence 43917.8.1 The basic idea 43917.8.2 Ascertaining the costs of an accident 44217.8.3 Allocation of costs to activities 44217.8.4 Responsiveness of price mechanism 44617.8.5 Applying general deterrence criteria in practice 44817.8.6 General deterrence and existing systems 44817.8.7 An assessment of the value of the
general-deterrence approach 45317.8.8 Conclusions about general deterrence 457
Part Six: The Future18 Accident compensation in the twenty-first century 461
18.1 Where we are now and how we got here 46118.2 Basic issues 467
18.2.1 Strict liability or no-fault? 46718.2.2 Limited or comprehensive reform? 46818.2.3 Preferential treatment 47218.2.4 Assessment of compensation 47418.2.5 Funding 47718.2.6 Goals of the system 478
18.3 Proposals and schemes 48418.3.1 Road accident schemes 48418.3.2 Other schemes 487
18.4 The way ahead 48818.4.1 A social welfare solution 48818.4.2 A private insurance solution 493
18.5 Damage to property 49518.6 The role of the insurance industry and the legal profession 496
Index 499
Contents xiii
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Preface
The seven years since I wrote the preface to the sixth edition have been ones of rapidand momentous change in the tort system, affecting most particularly the financingand settlement of personal injury claims. Some of these changes were foreshadowedin the previous edition; but it was hard to predict the precise contours of the revolu-tion that was about to be triggered by the abolition of legal aid for most personalinjury claims and the consequent growth of the claims management industry. Phrasessuch as ‘compensation culture’, ‘blame culture’ and ‘insurance crisis’ have becomepart of the common currency of public debate and political rhetoric in Britain. At thesame time, social security provision for the disabled and compensation for victims ofcrime have continued to engage the concern and attention of the government and thepublic, both being under review as I write. Nor is it only in Britain that personalinjury compensation looms large in legal and political debate. In the USA, forinstance, asbestos and medical malpractice litigation are matters of intractable andacrimonious disagreement. In Australia, as a result of turmoil in the liability insur-ance industry, ‘tort reform’ became, for several months in 2002, the hottest issue indomestic politics, leading to the appointment of a committee to review personalinjury law and, in its wake, major legislation in all jurisdictions. Despite widespreaddissatisfaction with the tort system, the past decade has (ironically, perhaps) seen itsfurther entrenchment in the political economy of personal injury compensation.Except at the margins, the thrust of public policy has been to make the tort systemwork better (whatever that might mean), not to replace it with something better.
Changes to the law, both in the areas already mentioned and in others such as theassessment of damages, have required substantial rewriting of various parts of thebook. The opportunity of a new edition has also been taken to relocate the discus-sion of human and natural causes (which appeared in chapter 16 of the sixthedition) into chapter 1 where (I think) it sits more comfortably. In this edition, too,there is new discussion (particularly in chapter 4) of various forms of administra-tive compensation arrangements benefiting victims of hepatitis-C, black lung,vibration white finger and other chronic externalities of modern industrial andtechnological activities.
Moving away from law and procedure, undoubtedly the most important devel-opment since the last edition has been the increasing availability of reliable statistics
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about the tort system. The NHS Litigation Authority now publishes detailed infor-mation about the number and cost of medical negligence (and other personalinjury) claims against NHS Trusts, and the Compensation Recovery Unit withinthe Department of Work and Pensions – as administrator of schemes for recoup-ing the cost of social security benefits and NHS treatment from payers of tort com-pensation – produces robust estimates of the total number of tort settlements. Thegeneral picture that emerges is that tort claims have increased about threefold sincethe 1970s (assuming that figures produced by the Pearson Commission werereasonably accurate). The impact of this new information is most obvious inchapter 8; but its influence pervades many parts of the book. As yet, intelligenceabout the cost of compensation is more patchy and less reliable. In some areas –criminal injuries compensation, for instance – the facts are known. But the totalcost of the tort system, for example, is a matter of considerable speculation and dis-agreement. Estimates of the total economic cost of personal injuries are even moreproblematic. There seems little doubt, however, that the turnover of the compen-sation ‘industry’ (broadly understood) runs into the tens of billions of pounds perannum – a significant amount by any standard.
As ever, the main aim of this book is to provide the reader with resources forstanding back from tort law and the tort system and viewing them in a larger legaland social landscape. Whether placing tort at the centre of the picture in this waycontinues to be desirable is a difficult question deserving of serious attention. Fromthe point of view of legal education, the approach still seems defensible because tortlaw is the only aspect of the political economy of personal injuries that the typicallaw student encounters. Whether the focus on tort has the same utility in thecontext of public policy debates is contestable. Tort law has an immanent ideology,and taking tort as a starting point may undesirably skew consideration of the basicquestion of how risks of personal injury ought to be distributed. Tort law and thetort system are (it seems) here to stay. The challenge is to imagine a dispensation towhich tort can make a positive contribution in partnership with other principlesand institutions of risk distribution. Only by doing this can we nurture the hopethat the various components of existing compensation arrangements can be heldin benign and creative tension. In the world of realpolitik the burning question isnot how to get rid of tort but how to live with it.
When a book has had as long a life as this one, the passage of time effects muchmore than the law discussed therein. This edition will appear under the imprint ofthe third publisher of the Law in Context Series, in which this book was the first.In 1970 academics used pens, typewriters and ‘dictaphones’ to produce their manu-scripts. Fax machines had not been invented, let alone personal computers, emailand the internet. Thanks to the World Wide Web and other marvels of informationtechnology, much of the research required to prepare a new edition of this book ismore easily done at my desk in Canberra than it was a decade ago when I lived andworked in England. Even so, the help of colleagues based in England – especiallyProfessor Richard Lewis and Professor Nick Wikeley – has been invaluable. Email
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has also enabled me to keep in frequent contact with Patrick Atiyah, whose char-acteristically forthright and original observations and opinions continue to provideinspiration and stimulation. The best form of thanks I can think of is to dedicatethis edition to him with affection, admiration and respect.
Peter CaneCanberra
April 2006
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List of abbreviations
A Atlantic Reporter (USA)AC Appeal CasesAll ER All England Law ReportsALR Australian Law ReportsApp Cas Appeal Cases (19th C)ATE insurance after-the-event insuranceAustralian Committee Report Compensation and Rehabilitation in Australia,
Report of the National Committee of Inquiry(Australian Government Publishing Service,Canberra, 1974)
Beveridge Report Social Insurance and Allied Services, Report bySir William Beveridge (Cmnd 6404, 1942)
BMLR Butterworths Medico-Legal ReportsBTE insurance before-the-event-insurance
C claimantCA Claims assessorCal Rptr California ReporterCan BR Canadian Bar ReviewCantley Committee Report Report of the Personal Injuries Litigation
Procedure Working Party (Cmnd 7476, 1979)CFA Conditional Fee ArrangementCh Chancery Division ReportsCICA Criminal Injuries Compensation AuthorityCICB Criminal Injuries Compensation BoardCICS Criminal Injuries Compensation SchemeCivil Justice Review Report of the Review Body on Civil Justice
(Cm 394, 1988)CLR Commonwealth Law Reports (Australia)Cm Command Paper (HMSO)CMC Claims management companyCmnd Command Paper (HMSO)
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CNST Clinical Negligence Scheme for TrustsConard, Automobile Accident A.F. Conard and others, Automobile Accident
Costs and Payments Costs and Payments (Ann Arbor, 1964)CPR Civil Procedure RulesCRU Compensation Recovery Unit
D defendantDCA Department for Constitutional AffairsDH Department of HealthDLA disability living allowanceDLR Dominion Law Reports (Canada)DPTC disabled persons tax creditDSS Department of Social SecurityDWA disability working allowanceDWP Department for Work and Pensions
ER English Reports
F Federal Reporter (USA)FC Family CreditF Supp Federal Supplement (USA)Fisher Committee Report The Abuse of Social Security Benefits (Cmnd
5228, 1973)
George V. George, Social Security: Beveridge and After(London, 1968)
GLO Group Litigation Order
HC House of CommonsHarris 1984 Survey D.R. Harris and others, Compensation and
Support for Illness and Injury (Oxford, 1984)HL House of LordsHMSO Her Majesty’s Stationery OfficeHow Much is Enough? Personal Injury Compensation: How Much is
Enough? Law Com. No. 225 (1994)ICLQ International and Comparative Law QuarterlyICR Industrial Cases ReportsIIAC Industrial Injuries Advisory CouncilIIS Industrial Injuries SchemeIPI Income protection insuranceIRLR Industrial Relations Law ReportsIS Income SupportIson T.G. Ison, The Forensic Lottery (London, 1967)
xviii List of abbreviations
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J (after a surname) Mr/Ms JusticeJ. JournalJPIL Journal of Personal Injury LawJSSL Journal of Social Security Law
KB King’s Bench ReportsKIR Knight’s Industrial Reports
Law. Com. Law Commission ReportLGR Knight’s Local Government ReportsLJ (after a surname) Lord/Lady JusticeLJ Law JournalLloyd’s Rep Lloyd’s ReportsLQR Law Quarterly ReviewLR Law ReviewLR . . . Ex Law Reports (Exchequer) (19th C)LS Legal StudiesLSC Legal Services Commission
MIB Motor Insurers’ BureauMR Master of the RollsMVR Motor Vehicle Reports (New South Wales)
NE North Eastern Reporter (USA)NHSLA National Health Service Litigation AuthorityNI National InsuranceNSWLR New South Wales Law ReportsNW North Western Reporter (USA)NY New York Reporter (USA)
Osgoode Hall Study A.M. Linden, Report of the Osgoode Hall Studyon Compensation for Victims of AutomobileAccidents (Toronto, 1965)
Osgoode Hall Study (Victims A.M. Linden, Report of the Osgoode Hall Studyof Crime) on Compensation for Victims of Crime
(Toronto, 1968)OPCS Disability Survey Report 1: Martin, Meltzer and Elliott, The
Prevalence of Disability Among Adults (HMSO,1988)Report 2: Martin and White, The FinancialCircumstances of Disabled Adults Living inPrivate Households
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Report 3: Bone and Meltzer, The Prevalence ofDisability Among Children (HMSO, 1989)Report 4: Martin, White and Meltzer, DisabledAdults: Services, Transport and Employment(HMSO, 1989) Report 5: Smyth and Robus, The FinancialCircumstances of Families with DisabledChildren Living in Private Households (HMSO,1989)Report 6: Meltzer, Smyth and Robus, DisabledChildren: Services, Transport and Education(HMSO, 1989)
P (preceded by date in square Probate Division Reportsbrackets)
PAI Personal accident insurancePearson Report Report of the Royal Commission on Civil
Liability and Compensation for Personal Injury(Cmnd 7054, 1978, 3 volumes)
Piercy Committee Report Report of the Committee of Inquiry on theRehabilitation, Training and Resettlement ofDisabled Persons (Cmnd 9883, 1956)
PMI Private medical insurancePPO periodical payment order
Q. QuarterlyQB Queen’s Bench ReportsQBD Queen’s Bench Division Reports (19th C)QdR Queensland Reports
R. ReviewREA Reduced Earnings AllowanceRTR Road Traffic ReportsRobens Committee Report Report of the Committee into Safety and
Health at Work (Cmnd 5304, 1972)
SCR Supreme Court Reports (Canada)SDA Severe Disability AllowanceSF Social FundSFO Social Fund OfficerSLT Scots Law TimesSSAT Social Security Appeals Tribunal
xx List of abbreviations
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SSCBA 1992 Social Security Contributions and Benefits Act1992
SSAA 1992 Social Security Administration Act 1992SSP Statutory Sick PaySeebohm Report Report of the Committee on Local Authority
and Allied Personal Social Services (Cmnd3703, 1968)
TRL Transport Research LaboratoryTRRL Transport and Road Research LaboratoryTSO The Stationery Office
U. UniversityUCLALR University of California at Los Angeles Law
Review
WAR Western Australian ReportsWALR Western Australian Law ReportsWFTC working families tax creditWikeley, Ogus and Barendt’s N.J. Wikeley, Wikeley, Ogus and Barendt’s The
The Law of Social Security Law of Social Security, 5th edn (London, 2002)Winn Committee Report Report of the Committee on Personal Injuries
Litigation (Cmnd 3691, 1968)WLR Weekly Law ReportsWN(NSW) Weekly Notes (New South Wales)WMA Widowed Mother’s AllowanceWoolf Reforms Changes to civil procedure introduced in 1999
and embodied in the Civil Procedure Rules(CPR)
WP Widow’s PensionWoodhouse Report Report of the Royal Commission of Inquiry on
Compensation for Personal Injuries in NewZealand (Government Printer, New Zealand,1967)
List of abbreviations xxi
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List of tables
Table 1 Numbers of disabled persons in Great Britain by age and degree of disability (thousands) 22
Table 2 Sources of income of family units containing a disabled adult by severity of disability (per cent) 23
Table 3 Numbers of injured persons obtaining compensation from different sources 23
Table 4 Cost of compensation paid from different sources to injured persons and administrative costs of payments, average over1971–6 (1977 currency values) 24
Table 5 Court waiting times in personal injury actions 202
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Table of legislation
Administration of Justice Act 1970........................................................................226Administration of Justice Act 1982 ...............................................................89n, 462
s.1 .......................................................................................................................90ns.2 ...........................................................................................................149n, 382ns.5.................................................................................................349n, 390n, 393n
Animals Act 1971......................................................................................72, 101, 248s.2(2)(b) ...........................................................................................................101ns.6 .....................................................................................................................101n
Attachment of Earnings Act 1971........................................................................226n
Chronically Sick and Disabled Persons Act 1970..................................................365s.2........................................................................................................................370
Civil Evidence Act 1995s.10......................................................................................................................158
Civil Liability (Contribution) Act 1978.................................................................102Civil Partnership Act 2004 .....................................................................................89nCivil Procedure Act 1997
s.7 .....................................................................................................................187nCoal Industry Act 1975 ........................................................................................357nCompanies Act 1989
s.141 .................................................................................................................253nCongenital Disabilities (Civil Liability) Act 1976 .............................57, 72, 246, 462Consumer Protection Act 1987.....................................................71, 103, 104, 105n,
124, 219Part I ................................................................99n, 103, 143n, 462, 467, 476, 489s.4(1)(e) ...........................................................................................................104n
Contracts (Rights of Third Parties) Act 1999 ...................................................244–5Courts Act 2003
s.95–s.96...........................................................................................................302ns.100 .................................................................................................................142n
Courts and Legal Services Act 1990s.58(4)(c) .........................................................................................................265n
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Criminal Damage Act 1971s.1(1)–(2) .........................................................................................................311n
Criminal Injuries Compensation Act 1995 ...................................303, 307, 309, 381s.7A–s.7D ...........................................................................................................303
Criminal Justice Act 1988.......................................................................................308Criminal Justice Act 1991
s.18–s.21...........................................................................................................178n
Damages Act 1996 ................................................................................................159ns.2 .....................................................................................................................142n
Damages (Scotland) Act 1976........................................................................90, 172nDefective Premises act 1972
s.4..........................................................................................................................72Disability Discrimination Act 1995 .......................................................368, 369, 370
Part IV ................................................................................................................370s.1(1) ..................................................................................................................368
Disability Living Allowance and Disability Working Allowance Act 1992..........335Disabled Persons (Employment) Act 1944............................................367, 368, 369Domestic Proceedings and Magistrates’ Courts Act 1978
s.3(2) ................................................................................................................155nDomestic Violence, Crime and Victims Act 2004
s.59 ...................................................................................................................303n
Employers’ Liability Act 1880 ............................................................................328–9Employers’ Liability (Compulsory Insurance) Act 1969...228n, 234, 246, 259, 297n
Factories Act 1961s.14........................................................................................................................96
Fatal Accidents Act 1976........................57, 58, 89, 90, 91, 132, 133, 134, 135, 136n, 137n, 141n, 143, 146, 147, 148, 149, 162, 171, 172n,
240, 245, 253, 318, 320, 323, 351, 381, 393s.1A.....................................................................................................................89ns.3(3) ................................................................................................................134ns.3(4) ................................................................................................................351ns.4 ...................................................................................................144, 245n, 351n
Health and Safety at Work etc Act 1974 ..................................................................98s.47(1)–(2) ...........................................................................................................98
Health Services and Public Health Act 1968.......................................................371nHighways (Miscellaneous Provisions) Act 1961..............................................72, 191Housing (Homeless Persons) Act 1977 .................................................................365Human Rights Act 1998 .........................................................................................194
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Income and Corporation Taxes Act 1988s.263 .................................................................................................................364ns.265 .................................................................................................................364ns.327 .................................................................................................................364n
Industrial Assurance and Friendly Societies Act 1948..........................................295Industrial Injuries Act 1946 .....................................................................................98
Law Reform (Contributory Negligence) Act 1945....................................36, 55, 245Law Reform (Husband and Wife) Act 1962..........................................72, 245, 255nLaw Reform (Miscellaneous Provisions) Act 1934..................36, 132, 147, 148, 245Law Reform (Miscellaneous Provisions) Act 1971
s.4........................................................................................................................240Law Reform (Personal Injuries) Act 1948 .......................................36, 245, 391, 392
s.1(3) ................................................................................................................245ns.2........................................................................................................................390s.2(4) ................................................................................................................150n
Legal Aid Act 1988s.13 ...................................................................................................................268ns.16(6) ..............................................................................................................268ns.17 ...................................................................................................................268n
Local Authority Social Services Act 1970 ..............................................................365Lord Campbell’s Act 1846 ................................................................................91, 132
National Assistance Act 1948Part III ................................................................................................................365s.21–s.28...........................................................................................................371n
National Health Service and Community Care Act 1990Part III..............................................................................................................371n
National Insurance Act 1911........................................................330, 331, 337, 343nNational Insurance (industrial Injuries) Act 1946................................................338
Occupiers’ Liability Act 1957 .....................................................................36, 72, 248Occupiers’ Liability Act 1984 .............................................................................36, 72Offences Against the Person Act 1861
s.34 ...................................................................................................................311n
Pneumoconiosis etc (Workers’ Compensation) Act 1979..................................357nPolicyholders Protection Act 1975.........................................................................242Powers of Criminal Courts Act 2000.....................................................................301
s.130–s.134.......................................................................................................301n
Race Relations Act 1976 .........................................................................................368Riot (Damages) Act 1886 .............................................................................295, 305n
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Road Traffic Act 1988.......................234, 246, 247, 248, 253n, 256, 257, 297n, 302ns.144 .................................................................................................................233ns.149(2) ..............................................................................................................61ns.149(3) ....................................................................................................65n, 257ns.151(4) ............................................................................................................257ns.153....................................................................................................232, 246, 247s.158 .................................................................................................................382n
Road Traffic (NHS Charges) Act 1999...........................................................382, 402
Sex Discrimination Act 1975 .............................................................................368–9Social Security Act 1975 .........................................................................................334Social Security Act 1985
s.23 ...................................................................................................................108nSocial Security Act 1986 .........................................................................................335Social Security Act 1989 .................................................................................391, 392Social Security Act 1990 .........................................................................................335Social Security Act 1998 ...............................................................................352n, 360
s.29 ...................................................................................................................355nSocial Security Administration Act 1992 ................................................334, 351–2n
Part IV ................................................................................................................391s.10(1)(b) ...........................................................................................................340
Social Security (Contributions and Benefits) Act 1992 ................................334, 344s.94(3) ..............................................................................................................339ns.99 ...................................................................................................................338ns.101............................................................................................................339, 340Sch.6.................................................................................................................344n
Social Security (Incapacity for Work) Act 1994....................................................336Social Security (Recovery of Benefits) Act 1997 ................................359n, 381, 383,
384, 393s.17 ...................................................................................................................393n
Supreme Court 1981s.32A.................................................................................................136, 142, 283n
Tax Credits Act 2002s.10 ...................................................................................................................358n
Third Parties (Rights Against Insurers) Act 1930 .................................232, 246, 247
Unfair Contract Terms Act 1977..............................................................62, 244, 248s.2..........................................................................................................................61s.11(4) ..............................................................................................................248n
Vaccine Damage Payments Act 1979 .............................................................108, 381
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Welfare Reform and Pensions Act 1999 ......................................................336, 347nWorkman’s Compensation Act 1897 .............................................................328, 330
Secondary legislationCivil Procedure Rules ......................................................................................354n
Part 19 ...........................................................................................................276Part 36 ...........................................................................................................280Part 45.........................................................................................................265nPart 46.........................................................................................................266nPart 72.........................................................................................................225n
Damages (Variation of Periodical Payments) Order 2005............................142nEuropean Communities (Rights Against Insurers) Regulations 2002..........246nHigh Court and County Courts Jurisdiction Order 1991.............................201nManagement of Health and Safety at Work Regulations 1999
reg.22(1) .......................................................................................................98nMotor Vehicles (Compulsory Insurance) (Information and CompensationBody) Regulations 2003
reg.11 ..........................................................................................................256nreg.13 ..........................................................................................................256n
Social Security (Claims and Payments) Regulations 1979reg.25 ..........................................................................................................355n
Social Security Commissioners (Procedure) Regulations 1999....................354nSocial Security (General Benefit) Regulations 1982
Sch.2............................................................................................................344nSocial Security (Recovery of Benefits) Regulations 1997 ..............................393n
reg.2(2)(a) ..................................................................................................351nVaccine Damage Payments Act 1979 Statutory Sum Order 2000.................108nWorking Tax Credit (Entitlement and Maximum Rate) Regulations 2002
reg.4(1) .......................................................................................................358n
European legislationCompensation of Crime Victims Directive 2004/80/EC.................................312European Convention on Human Rights ........................................................194
Art.3 ..............................................................................................................70nArt.6 ....................................................................................................70, 82, 83Art.13 ........................................................................................................70, 83
European Convention on the Compensation of Victims of Violent Crime...312Fifth Motor Insurance Directive 2005............................................................297nProduct Liability Directive................................................................................489Working Time Directive .................................................................................396n
New Zealand legislationAccident Compensation Act 1972..................................................16n, 153n, 156Injury Prevention, Rehabilitation and Compensation Act 2001
s.122 ............................................................................................................467n
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Table of cases
AB v British Coal Corporation [2004] EWHC 1372 ..........................................286nAB v John Wyeth & Brother Ltd [1994] PIQR P109 ..........................................277nAdamson v Motor Vehicle Insurance Trust (1957) 58 WALR 56.......................182nAiredale NHS Trust v Bland [1993] AC 789 .......................................................170nAlbert v MIB [1972] AC 301 ..................................................................................259Alcock v Chief Constable of South Yorkshire [1992] 1 AC 310...................87n, 88nAllen v Distillers Co (Biochemicals) Ltd [1974] 2 All ER 365 ...........................137nArnold v Teno (1978) 83 DLR (3d) 609 ................................................................77nAshton v Turner [1980] 3 All ER 890; [1981] QB 137 ...............................66n, 258nAttia v British Gas [1988] QB 304...............................................................85n, 316nAustin v Zurich Insurance Co [1945] KB 250 ....................................................381n
Baker v Willoughby [1970] AC 476...........................................................116n, 380nBanque Keyser Ullman v Skandia Insurance [1990] 1 QB 665............................74nBarker v St Gobain Pipelines plc [2004] EWCA Civ 545 ...................................114nBarnett v Chelsea and Kensington Hospital Management Committee [1969]
1 QB 428 .............................................................................................................78nBarrett v Enfield LBC [2001] 2 AC 550 ...........................................................70, 82nBarrett v Ministry of Defence [1995] 1 WLR 1217 ..............................................80nBerina (1888) 13 App Cas 1 ...................................................................................57nBeswick v Beswick [1968] AC 58.........................................................................258nBevan Ashford v Geoff Yeandle (Contractors) Ltd [1998] 3 All ER 238 ...........273nBiesheuvel v Birrell [1999] PIQR Q40.................................................................173nBird v Pearce [1979] RTR 369................................................................................77nBolitho v City and Hackney HA [1998] AC 232...................................................39nBolton v Stone [1951] AC 850 .................................................................43n, 45, 186Bond v Chief Constable of Kent [1983] 1 All ER 456 ........................................303nBradburn v Great Western Railway (1874) LR 10 Ex 1 ......................................388nBradley v Eagle Star Insurance Co Ltd [1989] AC 957.......................................253nBretton v Hancock [2005] EWCA Civ 404..........................................................247nBrice v Brown [1984] 1 All ER 997......................................................................127nBroome v Cassell [1972] AC 1027 .......................................................................419n
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Brown v Roberts [1965] 1 QB 1 ............................................................................82nBuckley v John Allen & Ford Ltd [1967] 1 QB 637 ............................................134nBurmah Oil Co v Lord Advocate [1965] AC 75 ....................................................117Burns v Edman [1970] 2 QB 541.........................................................................318nBux v Slough Metals Ltd [1974] 1 All ER 262 .......................................................115
Caparo Industries plc v Dickman [1990] 2 AC 605..............................................68nCapital & Counties plc v Hampshire CC [1997] QB 1004...................................79nCapps v Miller The Times 12 December 1988.......................................................55nCarmarthenshire County Council v Lewis [1955] AC 549 ..................................179Cassidy v Ministry of Health [1951] 2 KB 343.................................95n, 180n, 232nCaswell v Powell Duffryn Collieries [1940] AC 152...................................54n, 111nCavanagh v Ulster Weaving Co [1960] AC 145 ....................................................38nChadwick v British Railways Board [1967] 1 WLR 912...............................83n, 88nChaplin v Boys [1971] AC 356...............................................................................254Charlton v Forest Printing Ink Co [1978] IRLR 559..........................................301nChester v Afshar [2005] 1 AC 134 .......................................................................115nChief Adjudication Officer v Faulds [2002] 2 All ER 961 ..................................341nChorlton v Fisher [2002] QB 578 ........................................................................247nClark v National Insurance Corporation [1963] 3 All ER 375...........................237nClarke v Vedel [1979] RTR 26..............................................................................257nClunis v Camden and Islington Health Authority [1998] 3 All ER 180 ..............67nCole v South Tweed Heads Rugby Football Club Ltd (2004) 217 CLR 469 ........79nColledge v Bass Mitchells & Butlers Ltd [1988] 1 All ER 536 ............................388nConnelly v RTZ Corporation plc [1998] AC 854 ...............................................168nCooke v United Bristol Healthcare NHS Trust [2004] 1 WLR 251 ...................160nCookson v Knowles [1979] AC 556 ..................................................133, 145n, 159nCooper v MIB [1985] QB 575 .............................................................................257nCorfield v Groves [1950] 1 All ER 488...................................................................258Corrigan v Bjork Shiley Corp (1986) 227 Cal Rptr 247 .....................................168nCox v Hockenhull [1999] 3 All ER 577 ...............................................................132nCreutzfeldt-Jakob Disease Litigation; Group B Plaintiffs v Medical Research
Council (1997) 41 BMLR 157............................................................................87nCrocker v Sundance Northwest Resorts Ltd [1988] 1 SCR 1186 .........................79nCSR Ltd v Eddy [2005] HCA 64 ..........................................................................149nCutter v Eagle Star Insurance Co Ltd [1998] 4 All ER 417.................................247n
Daly v General Steam Navigation Ltd [1980] 3 All ER 696................................149nDavie v New Merton Board Mills [1959] AC 604.................................................249Davies v Eli Lilley & Co [1987] 1 WLR 1136 ......................................................267nDavies v Swan Motor Co [1949] 2 KB 291............................................................55nDavies v Taylor (No 2) [1973] 1 All ER 959........................................................279nDavies v Whiteways Cyder [1975] QB 262............................................................143
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Davis Contractors v Fareham UDC [1950] AC 696 .............................................38nDeep Vein Thrombosis and Air Travel Group Litigation (Re) ................................3Deyong v Shenburn [1946] KB 227.......................................................................75nDillon v Twin State Gas & Electric Co (1932) 163 A 111...................................116nDimond v Lowell [2002] 1 AC 384......................................................................265nDodds v Dodds [1978] QB 543................................................................................57Donnelly v Joyce [1974] QB 454 .........................................................................151nDonoghue v Stevenson [1932] AC 562..............................................................68, 71Dooley v Cammell Laird [1951] 1 Lloyd’s Reports 271 .......................................88nDoughty v Turner Manufacturing Co [1964] 1 QB 518.......................................126DP & JC v UK (2003) 36 EHRR 183 .....................................................................70nDunne v NW Gas Board [1964] 2 QB 806..........................................................419nDunnett v Railtrack plc [2002] 1 WLR 2434 ......................................................274n
Eagle v Chambers (No 2) [2004] 1 WLR 3081 ...................................................137nEley v Bedford [1972] 1 QB 155 ..........................................................................391n
Fairchild v Glenhaven Funeral Services Ltd [2003] 1 AC 32..............................113nFinlay v Railway Executive [1950] 2 All ER 1969................................................280nFitzgerald v Lane [1989] AC 328 ...........................................................................59nFletcher v Autocar Ltd [1968] 2 QB 322 .............................................................251nFlynn v Commonwealth of Australia (1988) 6 MVR 186 ....................................50nFontaine v Insurance Corporation of British Columbia......................................94nFroom v Butcher [1976] QB 268 .............................................................................55Frost v Chief Constable of South Yorkshire [1999] 2 AC 455 .....................87n, 88n
Gaca v Pirelli General plc [2004] 1 WLR 2683 .........................................388n, 389nGale v Motor Union Insurance Co Ltd [1928] 1 KB 359 ...................................378nGardner v Moore [1984] AC 548 ....................................................258n, 315n, 379nGaskill v Preston [1981] 3 All ER 427 .................................................................391nGiambrone v JMC Holidays Ltd (No 2) [2004] 2 All ER 891 ............................151nGoldman v Hargrave [1967] 1 AC 645 ..............................................................83, 84Goodburn v Thomas Cotton Ltd [1968] 1 QB 845............................................133nGorris v Scott (1874) LR 9 Ex 125 .........................................................................126Gray v Barr [1970] 2 QB 626 ...............................................................................319nGray v CICB (1998)..............................................................................................313nGreen v Russell [1959] 2 QB 226.........................................................................244nGregg v Scott [2005] 2 WLR 268 .................................................................114n, 117Gregory v Kelly [1978] RTR 426............................................................................64nGriffiths v British Coal Corporation [2001] 1 WLR 1493..................................393nGriffiths v Brown The Times 23 October 1998......................................................79nGroves v Wimborne [1898] 2 QB 402.........................................................96n, 328nGurtner v Circuit [1968] 2 QB 587........................................................................258
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Gwilliam v West Hertfordshire Hospitals NHS Trust [2003] QB 443.....248n, 250n
H v Ministry of Defence [1991] w QB 103 .........................................................166nHaigh v Ireland [1974] 1 WLR 43............................................................................98Haley v London Electricity Board [1965] AC 778 ................................................42nHall (Arthur JS) & Co v Simons [2002] 1 AC 615................................................69nHall v Brooklands Auto Racing Club [1933] 1 KB 205 ........................................64nHalsey v Milton Keynes General NHS Trust [2004] 1 WLR 3002 .....................274nHamilton v Al Fayed (No 2) [2003] QB 1175.....................................................263nHardy v MIB [1964] 2 QB 745.............................................................................319nHarman v Crilly [1943] 1 KB 68..........................................................................248nHartley v Birmingham CC [1992] 1 WLR 968 ...................................................233nHarvest Lane Motor Bodies, Re [1969] 1 Ch 457 ...............................................253nHatton v Sutherland [2002] 2 All ER 1 .................................................................87nHay v Hughes [1975] 1 All ER 257 ......................................................................147nHayden v Hayden [1992] 1 WLR 986..................................................................255nHeil v Rankin [2001] QB 272 ..............................................................................165nHenderson v Merrett Syndicates Ltd [1995] 2 AC 145.........................................78nHepburn v Tomlinson [1966] AC 451 ................................................................244nHewson v Downs [1970] 1 QB 93 .......................................................................391nHill v Chief Constable of West Yorkshire [1989] AC 53 ....................53n, 82n, 301nHinz v Berry [1970] 2 QB 40 .................................................................................85nHodges v Harland & Wolff [1965] 1 WLR 523 ...................................................166nHodgson v Imperial Tobacco [1998] 2 All ER 672 .............................................275nHodgson v Trapp AC 807.....................................................................................391nHollis v Dow Corning Corp (1995) 129 DLR (4th) 609 ....................................115nHolmes v Syntex Laboratories Inc (1984) 202 Cal Rptr 773..............................168nHome Office v Dorset Yacht Co [1970] AC 1004...............................52n, 81n, 301nHorsley v MacLaren (The Ogopogo) [1971] 2 Lloyd’s Reports 210............76n, 79nHosie v Arbroath Football Club Ltd [1987] SLT 122 ...........................................83nHotson v East Berkshire HA [1987] AC 750...............................................113n, 117Houghton v Hackney BC (1961) 3 KIR 615 .......................................................301nHudson v Ridge Manufacturing Co [1957] 2 QB 348..........................................81nHunt v Severs [1994] 2 AC 350 ...............................................151n, 158n, 255, 389nHunter v British Coal Corporation [1988] 2 All ER 97........................................88nHussain v New Taplow Paper Mills [1988] AC 514 ............................................388n
ICI v Shatwell [1965] AC 656 ......................................................................64n, 184nIRC v Hambrook [1956] 2 QB 641......................................................................379n
Jaensch v Coffey (1983–4) 155 CLR 549 ...............................................................87nJefford v Gee [1970] w QB 130 ............................................................................145n
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