Personal Injury, like many areas of law, is subject to ongoing improvements, here are some to consider for 2023 and beyond.
Many of the rules associated with Personal Injury Law are complex and restrictive, and over time the Government has sought to improve their efficiency and accessibility to claimants. In this article we will review many of the changes and proposed changes to these rules.
Personal injury law is a branch of civil law that deals with cases where someone suffers harm due to the negligence or wrongdoing of another person or entity. Personal injury law covers a wide range of situations, such as car accidents, slip and falls, medical malpractice, defective products, workplace injuries, and more.
If you have been injured in an accident that was not your fault, you may be entitled to compensation for your medical expenses, lost income, pain and suffering, and other damages. However, the process of pursuing a personal injury claim can be complex and challenging, especially if you are not familiar with the legal system and the applicable laws.
That is why it is important to be aware of the changes to personal injury law that will become prevalent in 2023 and some of those that were introduced in 2022. These changes are designed to benefit both personal injury law firms and their clients by simplifying the procedures, reducing the costs, and increasing the efficiency of personal injury litigation.
Here are some of the main changes that you need to know about.
The increase of the small claims limit for personal injury claims.
The small claims limit is the maximum amount of compensation that can be claimed through the small claims court, which is a simpler and cheaper way of resolving disputes.
Currently, the small claims limit for personal injury claims is £1,000 for general damages (such as pain and suffering) and £10,000 for special damages (such as medical expenses or lost income). From January 2023, the small claims limit will be increased to £5,000 for general damages and £20,000 for special damages. This means that more personal injury claims will be eligible for the small claims court, which will save both claimants and defendants from paying legal fees and court costs.
For example, if you slip and fall on a wet floor at a supermarket that causes you a broken arm and a sprained ankle, you can claim up to £5,000 for your pain and suffering and up to £20,000 for your medical bills and lost wages through the small claims court.
Changes to Qualified One-Way Cost Shifting (QOCS).
Qualified one-way cost shifting (QOCS) is a rule that applies to personal injury claims in England and Wales. It means that if a claimant loses their case, they do not have to pay the defendant’s legal costs, unless they have acted dishonestly, unreasonably or have brought a fraudulent claim. This rule protects claimants from facing a huge legal bill if their claim is unsuccessful.
QOCS was introduced in 2013 as part of the Jackson reforms, which aimed to reduce the costs and risks of litigation. However, QOCS only applied to claims funded by conditional fee agreements (CFAs), also known as no win no fee agreements. This meant that claimants who funded their claims by other means, such as legal expenses insurance or trade union funding, did not benefit from QOCS protection.
In 2023, QOCS has been extended to cover all personal injury claims, regardless of how they are funded. This means that claimants who have legal expenses insurance or trade union funding will also be protected from paying the defendant’s costs if they lose their case. This change will benefit both personal injury law firms and their clients in several ways.
First, it will encourage more claimants to pursue their rightful compensation for injuries caused by someone else’s negligence. Many people are deterred from making a claim because they fear the financial consequences of losing. By extending QOCS to all personal injury claims, more people will have access to justice and will be able to seek redress for their losses.
Second, it will reduce the complexity and uncertainty of personal injury litigation. Currently, claimants who do not have CFAs have to consider whether they have adequate insurance cover or alternative funding arrangements to protect them from adverse costs orders. They also have to deal with different rules and procedures depending on how their claim is funded. By extending QOCS to all personal injury claims, the same rule will apply to everyone and there will be less confusion and inconsistency.
Third, it will increase the efficiency and fairness of personal injury litigation. Currently, defendants have an incentive to drag out the litigation process and make unreasonable offers or arguments in order to increase the claimant’s costs and pressure them to drop or settle their claim. By extending QOCS to all personal injury claims, defendants will have less leverage over claimants and will be more likely to negotiate in good faith and resolve disputes quickly.
Fourth, it will improve the quality and reputation of personal injury law firms. Currently, some law firms may be reluctant to take on cases that are not funded by CFAs because they are more risky and less profitable. By extending QOCS to all personal injury claims, law firms will be able to offer their services to a wider range of clients and cases, without compromising their financial viability. This will enhance their expertise and credibility in the field of personal injury law.
Rules currently under consideration by the government.
The following are a range of personal injury law rules currently under consideration for change by the Government and Civil Justice Council, as many are complex and restrictive. The aim is to make them more efficient and accessible to claimants.
Changes to the limitation period for personal injury claims.
The limitation period for personal injury claims in England and Wales is currently three years from the date of the accident. However, the Civil Justice Council is currently considering proposals to extend the limitation period to five years.
Changes to the discount rate.
The discount rate is used to calculate the present value of future losses in personal injury claims. The current discount rate is 2.5%. However, the government is considering proposals to increase the discount rate to 3.5%. This would mean that claimants would receive less compensation for their future losses.
Changes to the rules on pre-action disclosure.
The rules on pre-action disclosure require defendants to disclose documents to claimants before they issue a claim. The current rules are complex and time-consuming.
Changes to the rules on third-party funding.
Third-party funding is where a third party, such as a law firm or investment company, provides funding to a claimant to bring a personal injury claim. The current rules on third-party funding are complex and restrictive.
Changes to the definition of “serious injury”.
The definition of “serious injury” is used to determine whether a claimant is eligible for special damages, such as loss of earnings and care costs. The current definition is complex and difficult to apply. The government is considering proposals to simplify the definition and make it easier for claimants to qualify for special damages.
Changes to the rules on conditional fee agreements (CFAs).
CFAs are agreements where a lawyer agrees to work on a case for a success fee, which is only payable if the case is successful. The current rules on CFAs are complex and restrictive.
Changes to the rules on ATE insurance.
ATE insurance is insurance that covers the cost of legal fees if a claimant is unsuccessful in their case. The current rules on ATE insurance are complex and restrictive.
Changes to the limitation period.
The limitation period is the time limit within which a claimant must bring a personal injury claim. The current limitation period is three years. However, the government is considering proposals to extend the limitation period to five years. This would give claimants more time to bring a claim, but it would also increase the risk of claimants forgetting about their injuries and missing the deadline.
Changes to the rules on apportionment.
Apportionment is the process of dividing the blame for an accident between the claimant and the defendant. The current rules on apportionment are complex and difficult to apply. The government is considering proposals to simplify the rules and make them more accessible to claimants.
Changes to the rules on costs.
The rules on costs determine who is responsible for paying the legal fees in a personal injury case. The current rules on costs are complex and can be unfair to claimants.
These are many of the major changes that will potentially affect personal injury law in 2023. These changes are expected to benefit both personal injury law firms and their clients by making the process of claiming compensation easier, faster, and cheaper. However, these changes also mean that you may need to adjust your expectations and strategies when pursuing a personal injury claim.
If you have been injured in an accident that was not your fault, you should consult with a qualified and experienced personal injury lawyer who can advise you on your rights and options under the new laws. A personal injury lawyer can help you navigate the online portal or the small claims court, negotiate with the other party or their insurer, gather evidence and witnesses to support your claim, and represent you in court if necessary.
If you want to learn more about how we can help you with your personal injury claim under the new laws, please contact us today by phone or email. We are ready to fight for your rights and interests.
