GB: Do Defence Solicitors need to advise Insurers to raise their Reserves in PI Cases? Beware the 10% rise in General Damages.
The GB Court of Appeal in Simmons v Castle  EWCA Civ 1039 took the opportunity to announce an increase in General Damages in most Tort actions from 1st April 2013.
The rise is on foot of the recommendations of Sir Rupert Jackson contained in the Legal Aid, Sentencing and Punishment of Offenders Act 2012. One of the fundamental features of the recommendations was an envisaged rise of general damages of 10%.
The Court of Appeal ruled that the uplift should be applied to all personal injury awards from April 2013 to include cases launched before that date.
The Association of British Insurers (ABI) although not a party to the action, has appealed the decision.
A spokesman for the ABI said: ‘At the moment this upsets the balance that was intended by the Legal Aid, Sentencing and Punishment of Offenders Act. We have always known about the 10% uplift, but it was supposed to be balanced by a reduction in legal costs.’