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Tarlochan Singh Flora v Wakom (Heathro) Ltd [2005] EWHC 2822 (QB)

Although the courts had not yet given practical effect to the Damages Act 1996, s 2(9) as inserted by the Courts Act 2003, s 100, when awarding periodical payments for future loss whereby the amount of payments would vary otherwise than by reference to the retail prices index, there was no relevant jurisprudence according to which it could be said that a statement of case based on s 2(9) was bound to fail.

3 February 2006

W applied for an order to strike out F’s statement of case as to the application of s 2(9) Damages Act 1996, as inserted by s 100 Courts Act 2003. F sought damages for personal injury and consequential loss following an accident at work. F was unable to work as a result of his injuries and was dependent on others for his daily needs. Judgment was entered for F. Directions were given for F and W to consider whether any order for periodical payments should include a provision within s 2(9) of the 1996 Act disapplying or modifying the effect of s 2(8) of the 1996 Act as to the retail prices index. In the case of lump sum awards, it was settled law that attempts to apply a different discount rate from the fixed 2.5 per cent rate were bound to fail unless particular or exceptional circumstances arose. W submitted that, as a matter of law, the court would or could not order periodical payments to be made other than in accordance with s 2(8) of the 1996 Act as the retail price index ha...

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