Competing principles

A recurring issue in personal injury litigation in recent years is the question of whether awards of damages to victims of serious injury should be reduced to reflect the victim’s entitlement to statutory services, whether care, accommodation or cash payments, from his or her local authority. The principle underlying personal injury compensation is that the damages awarded should put the injured party back in same financial position as if he had not been injured. However, under the National Assistance Act 1948, local authorities have a duty to assess a disabled person’s needs and where that person is eligible, to offer care and/or accommodation, and more recent legislation has given rise to entitlements to money payments to meet the costs of care (direct payments).

Defendants have argued that where the claimant’s needs will be met in whole or in part by the local authority, the claimant should give credit for that entitlement. Underlying this dispute is a clash of competing principles.