Today the government announced a change in the discount rate from 2.5% to -0.75%.
This has a major impact upon the way that schedules for future loss are calculated.
The practical steps that need to be taken include:
- Check and revise any existing schedules of damages that have any element of future loss. The change in the discount rate could have a major impact on the claim for future loss.
- Rebmark have drafted a new set of tables – Ogden 7 – Using New Discount Rate V2. This is available from their website – here
- Remember if this re-calculation is going to involve the parties in additional work it is prudent to consider applying to revise the costs budgets.
- In some cases the change in the multiplier may impact upon the overall value of the claim and an application will be needed to amend the value and (probably) to pay an increased court fee.
The most immediate practical step applies if schedules have been drafted on the basis of the old discount rate of 2.5% and a trial or joint settlement meeting is imminent. In these cases steps will need to be taken at once.
If you are a claimant and have made a Part 36 offer then you may have to look at the offer immediately and consider whether to withdraw it.
Similarly if you are a defendant:
- If you have received Part 36 offers from claimants these should be considered carefully, particularly if the claimant may withdraw them.
- If you have made Part 36 offers consideration should be given to whether these are likely to remain effective.
- Nigel Poole QC’s Discount Rate: In case of Emergency
- John de Bono QC discusses the practical implications for accommodation claims in Roberts -v- Johnstone is dead.
- Phillip Turton has a useful “Briefing Note – Discount Rates”
- A more detailed examination of the rules relating to Part 36 in this context can be found in Civil Litigation Brief