For insurers and legal practitioners in Ireland, recent trends in the Court of Appeal’s assessment of general damages for personal injuries are highly relevant. Understanding these developments is essential for managing risk and advising clients effectively.
The Case of O’Daly: A Reduction in Damages
On 8th June 2016, Mr O’Daly was cycling near Dublin’s Custom House when a passing bus caused him to fall, fracturing his elbow and spraining his ankle. Following a contested High Court action where liability was disputed, he was initially awarded €100,000 in general damages for pain and suffering.
Last week, the Court of Appeal reduced this award to €55,000, reflecting a continued trend of proportionality and reasonableness in damages assessments.
Early Decisions: Payne v Nugent and Nolan v Wirenski
The Court of Appeal, formed in late 2014, quickly established principles for assessing damages. In Payne v Nugent (2015), the Court emphasised that awards must be reasonable relative to the injury sustained and proportionate compared to awards for greater or lesser injuries.
Similarly, in Nolan v Wirenski, the Court reduced a High Court award from €100,000 to €65,000, reinforcing consistency in damage awards.
Recalibration of Awards? Shannon and Cronin Cases
Subsequent decisions illustrate that the Court of Appeal’s approach does not constitute a wholesale “recalibration” of awards. In the cases of Mr & Mrs Shannon, high court damages were significantly reduced. Similarly, Miss Cronin, a taxi passenger awarded €180,000, had her award reduced by €75,000.
These examples demonstrate the Court’s consistent focus on reasonableness rather than arbitrary reductions.
Murphy v County Galway Motor Club: When Awards Increase
Not all decisions reduce damages. In Murphy v County Galway Motor Club, a spectator injured at a rally saw his general damages raised from €200,000 to €275,000, and contributory negligence was set aside. This case highlights that the Court acts fairly, balancing protection for injured parties with predictability for insurers.
Recent Trends in General Damages Reductions
Recent decisions, including McKeown v Crosby, Griffin v Hoare, Quinn v Masivlaniec, and Leidig v O’Neill, show reductions ranging from €70,000 to €35,000, €155,000 to €120,000, and €155,000 to €90,000, respectively. These reflect a deliberate approach to maintain reasonableness and proportionality in awards.
However, the Court has occasionally refused to interfere, as seen in Zhang v Farrell and O’Sullivan v Brozda, underscoring that each case is assessed on its individual merits.
Implications for Insurance Defence Solicitors in Ireland
For insurers navigating personal injury claims in Ireland, understanding trends in Court of Appeal awards is crucial. Predictable, proportionate assessments reduce uncertainty in liability exposure.
Our Dublin and Belfast insurance defence solicitors provide expert guidance on defending claims efficiently, helping insurers manage risk while ensuring compliance with current legal standards.
