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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Kampff -v- Minister For Public Expenditure and Reform [2018] IEHC 371 (27 June 2018) URL: http://www.bailii.org/ie/cases/IEHC/2018/H371.html Cite as: [2018] IEHC 371 |
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[2018] IEHC 371 THE HIGH COURT
GARDA COMPENSATION [2016 No. 383 SP]
NIALL KAMPFF APPLICANT -AND-
MINISTER FOR PUBLIC EXPENDITURE AND REFORM RESPONDENT JUDGMENT of Mr. Justice Twomey delivered on the 25th June, 2018 Summary – how to put a monetary value on pain and suffering? 2. This Court concludes that the appropriate amount of compensation is €5,000. While this Court is obliged simply tohave regard tothe Book of Quantum in civilian personal injury cases (but not in Garda Compensation cases), which means the Book of Quantum is not binding, this Court (and indeed the District Court and the Circuit Court) is obliged to follow the binding principles for the assessment of damages for personal injuries enunciated by the Court of Appeal and the Supreme Court. 3. Applying these binding principles led this Court to an assessment of a figure of €5,000 for the pain and suffering involved, which is very different from the Book of Quantum figure urged upon this Court by counsel for Garda Kampff. Accordingly, it is important that this Court sets out these principles and the application of these principles to Garda Kampff’s case, which led to the assessment of a figure of €5,000, rather than the figure of €21,700 suggested by counsel for Garda Kampff. 4. Accordingly, this judgment:
o the relevance of the average earnings for people in Ireland of €45,611 per annum or €3,800 per month, to the calculation of general damages for pain and suffering, o the necessity for awards for personal injuries to be proportionate to the ‘cap’ on general damages of €450,000 for pain and suffering for the most catastrophic injuries, such as paraplegia, o the effect of the recent downwards ‘recalibration’ by the Court of Appeal of the awards of general damages for personal injuries.
o first unlike other personal injury cases, minor injuries, which are suited to being heard in the District Court or Circuit Court, must under current legislation be dealt with in the High Court, which commonly gives rise to a situation where the costs will be a multiple of the award in damages, which costs are invariably paid by the taxpayer, o secondly, unlike other personal injury cases, under existing Superior Court Rules, there is no incentive for Garda Compensation cases to be settled without the expense of a court hearing, thus leading to no early settlement of cases with no consequent saving on legal costs, which legal costs are, as noted, invariably all paid by the taxpayer, and o thirdly, unlike other personal injury cases, Garda Compensation cases are not subject to the Personal Injuries Assessment Board (“PIAB”), and so garda claims can only be processed by lawyers in the High Court at considerable expense (because of the very considerable cost of High Court litigation). Injured gardaí do not have the right of injured civilians to have their claims dealt with in the speedy and cost-efficient assessment system provided by the PIAB. This is despite the fact that the PIAB is specifically designed to deal with the type of injuries suffered by gardaí which appear before this Court (namely assessment only cases as liability is invariably not contested) and which if dealt with by PIAB could be done with little or no legal costs to the taxpayer. 5. The case which led this Court to consider in detail the principles applicable to the calculation of general damages for personal injuries in general, and specifically to gardaí, is the claim by Garda Kampff for compensation for bruising to his hand, when he struck it against some shelving when he was effecting the arrest of a suspect almost five years ago on the 1st September, 2013. €21,700 for bruising to a hand? 7. Garda Kampff’s claim for compensation is made under the Garda Síochána (Compensation) Act, 1941 (the “1941 Act”), as amended by the Garda Síochána Compensation (Amendment) Act, 1945 (the “1945 Act”), both of which are referred to as the “Garda Compensation Acts”. As noted hereunder, under these Acts, Garda Kampff is entitled to the same level of general damages for the pain and suffering he experienced as any other plaintiff would be entitled to, in a personal injury claim against a third party. 8. It is the fifth claim that Garda Kampff has made under the Garda Compensation Acts, the first was made in relation to a kick to his hand leading to a fracture and Post Traumatic Stress Disorder in relation to a bite injury from the one incident in 1993. The second claim was in 1995 and related to a road traffic accident at work and resulting in severe anxiety which he suffered thereafter. The third claim related to facial abrasions and conjunctivitis from a road traffic accident at work in 1996. The fourth claim related to a soft tissue injury to his scrotum in 1997. 9. As regards the particulars of the current injury to Garda Kampff, an MRI confirmed that he had not sustained a fracture to his hand but sustained some bruising of the bone. His hand was strapped and put in a sling and he was given anti-inflammatories. He did not require any pain medication, nor did he require any physiotherapy. Garda Kampff was on sick leave for five days. He fully recovered from the injury within a short time of the incident and had no long-term effects. However, Garda Kampff stated in his evidence that it was one year before his hand was fully better. Special damages of €1,185 for Garda Kampff were agreed between the parties. 10. In order to consider whether the amount suggested by counsel for Garda Kampff is an appropriate award for general damages, which is essentially an amount for the pain and suffering incurred by Garda Kampff as a result of his hand injury, this Court will consider:
B. The mechanics of calculating damages for all personal injuries. A. GARDA CLAIMS FOR PERSONAL INJURIES 11. Every Monday during the legal term, this Court assesses the amount of compensation payable to members of An Garda Síochána who are injured during the course of their duties, i.e. how much is appropriate to compensate an injured party for the pain and suffering caused by the injury. The injuries in question can range from relatively minor injuries (such as a non-bony injury to a finger) to life changing injuries. Thankfully, the vast majority of claims heard in this Court belong to the first category.
12. It is beyond question that each of the plaintiffs before the Court are entitled to compensation for their injuries just as in appropriate cases, civilians may be entitled to compensation for injuries suffered during the course of their employment. Indeed to date, this Court has been struck by the bravery of the gardaí, who on a daily basis risk their lives, and are injured in so doing, in order that members of the public can live peaceful lives. 13. The purpose of this judgment is to outline the principles which this Court is obliged to apply in the assessment of damages for injured gardaí, particularly for minor injuries, since it is a peculiarity of the statutory compensation scheme for gardaí thatallinjuries to gardaí, once they were maliciously inflicted and are not so minor as not to be approved for compensation by the Minister for Justice and Equality under s. 6 of the Garda Compensation Acts, are dealt with by the High Court. 14. It is anticipated that the principles set out hereunder will allow injured gardaí and their legal advisers, as well as the Department for Public Expenditure and Reform, which is the respondent in all such claims and the payer of the compensation, and its legal advisers understand how this Court is obliged to calculate awards. In this way it is hoped that the statement of these principles will facilitate the settlement of these Garda Compensation cases and ultimately lead to a saving in legal costs to the State, since as noted below, invariably it is the State which pays not just its own legal costs but also the legal costs of the injured garda. 1% settlement rate in garda cases v. 90% settlement rate in civilian cases 16. A dispute resolution system (since this is what the assessment of Garda Compensation by the High Court is - where the parties fail to reach agreement on the amount of compensation) which leads to 99% of plaintiffs/applicants having a full hearing in a severely under-resourced High Court (see ‘Ireland has lowest number of judges in the OECD’ per Kelly P speaking extra-judicially in theBar Review(2018) Vol 23 No. 1 at page 12) before receiving their award and thus having to put up with a delay in receiving compensation, is not a system that is designed with the injured plaintiffs/applicants in mind. This dispute resolution system does however benefit the lawyers involved, since the legal fees incurred in resolving a dispute after a High Court hearing will in most cases be greater than those involved in settling a claim without a High Court hearing. The reasons for this state of affairs are considered below. First, it is proposed to consider why all injuries to gardaí are dealt with in the High Court. Why are minor injuries assessed in the High Court? 18. This means that two sets of High Court legal costs are paid by the State (out of taxpayers' funds), first to the lawyers acting for the garda (since the garda’s legal costs are invariably paid by the State) as well as to lawyers acting for the Minister for Public Expenditure and Reform, even though the majority of awards made under the Garda Compensation Acts would only merit District Court or Circuit Court costs, if the injured party was a civilian. It could cost the taxpayer €15,000-€20,000 to make an award of €5,000 20. This curious situation arises because it is a peculiarity of Garda Compensation cases that all awards for Garda Compensation, and thus including low value awards for minor injuries, are made in the High Court, with all the expense of High Court litigation. In this Court’s view, this cannot be justified and it is possible that this approach costs the State up to €100,000 a week (in light of the number of hearings before this Court per week), in legal costs at High Court rates for cases which could be heard in the District or Circuit Court (which figure is an estimate pending the receipt of accurate figures from the CSSO). These legal costs could easily be saved by simply applying the same jurisdictional rules to personal injuries to gardaí, as currently apply to personal injuries to civilians, so that relatively minor injuries to gardaí are assessed in the District Court if the injury would justify an award up to €15,000, and the Circuit Court if the injury would justify an award between €15,000 and €75,000, and in the High Court thereafter. In this regard, this Court is awaiting submissions which are being prepared by the Chief State Solicitor’s Office on the level of legal fees which are paid in Garda Compensation cases where a District Court or Circuit Court level award is made in the High Court, to both counsel for the Minister for Public Expenditure and Reform and to the solicitors and counsel acting for the gardaí. Pending the receipt of such figures, this Court is using estimates of the likely costs for High Court actions. 21. In the alternative, if the assessment of relatively minor injuries is to continue to be done in the High Court, the legal costs should be at the District Court/Circuit Court/High Court level, depending on the level of the award. Whichever approach is taken would require a decision of the Oireachtas, since this Court has no power to amend the law applicable to the court which hears Garda Compensation claims or the law applicable to the taxation of legal costs payable in relation thereto. Eliminating rather than reducing legal costs – use of PIAB 23. This is because, in this Court's view, there is no reason why Garda Compensation cases are not dealt with by PIAB, which would lead to a massive saving to the taxpayer, since no legal fees are paid when PIAB assesses damages for a personal injury. Garda Compensation cases are particularly suited to the PIAB since all the cases which appear before this Court are concerned simply with theassessmentof the appropriate level of compensation (as liability or causation is rarely an issue), and assessment of compensation for personal injuries is, after all, the veryraison d’êtrefor the PIAB. A general scheme of a bill from 2012, the Garda Síochána Compensation (Malicious Injuries) Bill 2012 envisages a PIAB type scheme being introduced for the gardaí, but this bill was not enacted. 24. It is worth noting that this Court hears claims which can be seven years old or more, which is a considerable period of time for an injured garda to wait for compensation. It seems clear therefore that while the garda’s lawyers may not benefit from the use of PIAB, the injured garda will benefit because the average time for the resolution of claims before PIAB is on average seven months according to the PIAB website. Garda Kampff’s injury occurred in 2013 and is only now being assessed. There is no reason, in this Court’s view, why members of An Garda Síochána should not be entitled to have their injuries assessed in a quick and cost efficient way using PIAB. The only beneficiaries of the current system of Garda Compensation appear to be the lawyers and the losers would appear to be the taxpayers who are funding those legal costs. Perverse financial incentive for lawyers not to settle Garda claims Arguable that it would defy economic logic for lawyer to settle garda case 26. Indeed, one could argue that, unlike in a civilian personal injury case where there is a risk of the lawyer’s costs not being paid if he does not settle, it would defy economic logic for a lawyer to settle a Garda Compensation case before the court hearing, since it will lead to the lawyer losing out on a ‘guaranteed’ payment for the court hearing, as there is no risk of him/her not being paid for the hearing, which is essentially just a hearing on the quantum of damages to be paid. It is important to note that this observation that Garda Compensation Cases do not settle is not a criticism of the lawyers involved, since the lawyers could not be expected to act against their own financial interests, particularly when their client is guaranteed to receive an award whether the case is settled or there is an award made by the High Court after a hearing, but rather it is a criticism of the system of Garda Compensation in which the lawyers must operate. 27. This absence of an incentive to settle a garda personal injuries claim does not exist in relation to civilian personal injury claims. This perverse financial incentive on the lawyers not to settle the claim is because it is not possible for a lodgment/tender offer to be made in Garda Compensation cases. This is because Order 22 of the Rules of the Superior Courts, which governs the making of lodgments/tender offers, applies to ‘any action to which s 1(1) of the Courts Act 1988 applies’. A claim for compensation under the Garda Compensation Acts is not included in the list of actions to which s 1(1) applies. Accordingly, until the law is amended, it is not possible for the State, unlike a defendant in a civilian personal injury case, to make a lodgment/tender offer to settle a Garda Compensation case. Making a lodgment/tender offer, if it were possible, in a Garda Compensation case would mean that the garda’s lawyer would have to advise the injured garda to seriously consider accepting a reasonable offer for his or her injuries, since if the court award did not beat the lodgment/tender offer, the applicant garda would not be awarded his or her full legal costs and would thus be financially worse off. In contrast, under the present Garda Compensation system, the garda invariably gets his or her full legal costs and so there is no incentive to short-circuit the litigation process and save the State the two full sets of legal costs of the hearing (the Minister for Public Expenditure and Reform’s legal costs and the garda’s legal costs.) 28. As noted by Peart J. inKearney v. Barrett[2004] 1 IR 1 at p 10 when discussing the rationale for lodgments and tender offers:
29. It seems clear to this Court that the absence of a right on the part of the State to make a lodgment/tender is the reason why Garda Compensation cases do not settle with the result that there is no real prospect of the State ever saving on legal costs by settling a case. There appears to this Court to be no compelling reason why an incentive should not be provided for gardaí personal injury cases to settle, just as there is for civilian personal injury cases to settle. This effective restriction on the State saving money on legal costs could be easily removed by amending the rules regarding lodgments/tenders so that they apply to cases taken under the Garda Compensation Act. Conclusion - possible savings of millions of euro to the taxpayer 31. Having made those observations on changes that might be considered to the current statutory scheme for compensation for gardaí, the focus of the remainder of this judgment is on the mechanics of assessing damages for injured gardaí, whether for relatively minor injuries or for very serious injuries which are suffered by gardaí from time to time during the course of their duties. B. RULES FOR ASSESSING DAMAGES FOR PERSONAL INJURIES 33. This Court does so in the hope that if the current system of Garda Compensation continues into the future without any reform, setting out these principles may encourage the Minister for Public Expenditure and Reform to make settlement offers and gardaí to accept them, and thereby increase the current negligible settlement rate and thereby lead to a reduction in legal costs paid by the taxpayer and a saving of court resources which are also funded by the taxpayer. General damages at issue, not special damages 35. In this context, it is also important to bear in mind that while reference will be made in this judgment to a ‘cap’ on damages of €450,000 for a catastrophic injury (referenced in the Court of Appeal decision inShannon v. O’Sullivan[2016] IECA 93), that ‘cap’ only refers to general damages for pain and suffering. The High Court will in many cases end up awarding many multiples of that figure in damages in catastrophic personal injury cases. However, it is important to bear in mind that the vast majority of these large awards are made up of special damages, which are usually the out of pocket expenses incurred or to be incurred in the future by an injured plaintiff e.g. full time care for life and/or loss of earnings over a lifetime, so in a multi-million euro award of general and special damages, it is usually the case that a maximum of €450,000 of that award will relate to general damages and the remainder of the overall award will be made up of damages in respect of expenses and loss of earnings over the life-time of the injured party. 36. The key aim of this judgment is to outline the precise legal principles, set down by the Court of Appeal and the Supreme Court, which bind the High Court in its calculation of the amount of general damages to be paid to compensate a garda for the injury suffered in the exercise of his or her duties, and thus no reference will be made to special damages in this judgment. The difficulty of putting a value on a personal injury
39. On one level this means that it is arguable that the amount of damages a person should receive for a serious or life changing injury is limitless since no amount of money can compensate someone for a state of being which he or she would never want. While theoretically this argument could be made, it is clear that the approach of the Irish courts is that there is a limit to the amount of damages for pain and suffering for personal injuries which may be awarded by the Irish courts. In the Supreme Court case ofSinnott v. Quinnsworth[1984] ILRM 523 at 532 O’Higgins C.J. stated:
Principles applicable to putting a monetary figure on pain and suffering (I) No difference between an injured garda and any other injured plaintiff 43. The same question arises in each case, namely, how much general damages should be paid to compensate the plaintiff for the pain and suffering of the injury in question. In this Court’s view, there could be no basis for treating a garda differently from any other plaintiff in assessing the damages to be awarded for a personal injury. InMurphy v. Minister for Public Expenditure and Reform[2015] IEHC 868 at para 31, Barton J. stated:
(II) Bravery of an injured garda is not a factor in assessing general damages 47. As noted by Irvine J. inCarey v. Minister for Finance[2010] IEHC 247 at para 4.25:
48. The corollary of the principle, that this Court does not have jurisdiction to reward bravery, is equally applicable. Thus, just because a garda is involved in an occupation where there is a high degree of physicality and exposure to the risk of bodily harm and where bravery may be expected, does not mean that when a garda is injured in the course of his duties, he should get less than a civilian who suffers similar personal injuries. But no compensation for injuries determined by Minister to be minor
51. However, there is a provision under s. 6(1)(b)(ii) of the 1941 Act for the Minister for Justice and Equality to make a payment of up to £100/€127 in respect of minor injuries which were incurred in the course of duty involving special risk, where the Minister regards that amount as adequate compensation. It is clear to this Court that this amount of money, which was fixed in 1941, is hopelessly out of date and should be revised. Once Minster determines that not minor injury, Court must make award
53. It is clear from the judgment of Barton J. inMurphy v. Minister for Public Expenditure and Reform[2015] IEHC 868 at para. 36 that in dealing with compensation claims under the Garda Compensation Acts that the High Court is not obliged to have regard to the Book of Quantum:
55. In any case, as noted hereunder, some of the awards which are contained in the Book of Quantum have been subject to recalibration downwards since it was re-issued in 2016. Even in the context of personal injuries to civilians, the Book of Quantum is of significantly less importance to the High Court’s decision on the level of damages, than the principles laid down by the Court of Appeal and the Supreme Court on the proportionality of awards to the ‘cap’ and the relativity of the award to average earnings (dealt with below), since the Book of Quantum isnot bindingon the courts, while the principles laid down by the Court of Appeal and the Supreme Courtare binding. (V) ‘Not minor’ does not imply not ‘moderate’ in Book of Quantum 57. It is clear to this Court that just because the Minister for Justice and Equality determines that an injury is not ‘minor’ pursuant to s. 6(1)(b)(i) of the 1941 Act does not mean that this injury falls outside the ‘minor’ category of injuries for the purposes of the Book of Quantum, since if this were the case, it would mean that the Minister for Justice and Equality would have a role in determining the level of compensation payable to an injured garda, which is a judicial function under the Garda Compensation Acts and not a function of the Minister. 58. In other words, simply because the Minister for Justice and Equality did not regard the injury to be so minor as tonotmerit compensation, does not mean that it is automatically a ‘moderate’ or worse injury for the purposes of the Book of Quantum. This is because the expression ‘minor’ in the Garda Compensation Acts is used as a means of describing an injury that is not sufficiently serious to merit an application to the High Court for compensation. It is not a term of art. The expression ‘minor’ under the Book of Quantum has a completely different meaning, since the Book of Quantum deals with all injuries that are pursued by civilians for personal injuries and where there is not a threshold for those litigants instituting proceedings (unlike gardaí, who are seeking compensation under the Garda Compensation Acts). The expression ‘minor’ in the Book of Quantum simply means the lowest band of injuries, for the purposes of damages, where there are four categories, being ‘minor’, ‘moderate’, ‘moderately severe’ and ‘severe and permanent conditions’. It does not mean that it is an injury which, if it happened to a garda, would not be approved for compensation by the Minister for Justice and Equality. 59. Indeed, a practical example of this issue is the fact that in this case, Garda Kampff suffered soft tissue injuries to his hand and this Court regards that injury as minor for the purposes of the Book of Quantum, notwithstanding that the Minister regards it as notsufficiently minor(to use this Court’s expression) for the purposes of s. 6(1)(b)(i) of the Garda Compensation Acts to deprive the garda of any compensation. Indeed, as previously noted, it is clear to this Court that even if it believed that Garda Kampff’s hand injury was sufficiently minor to not justify compensation, this Court is nonetheless obliged to award him compensation, since this Court has no jurisdiction to reverse the decision of the Minister for Justice and Equality that the injury is not an injury of a minor character, as is clear from the judgment of Carney J. inMcGee v. Minister for Finance[1996] 3 IR 234, since as noted in that judgment, s. 6(3) of the 1941 Act makes clear that the Minister’s decision is final and conclusive. 60. All of this means that because a garda has got approval from the Minister that his or her injury is not ‘minor’ for the purposes of the Garda Compensation Acts, does not mean that it will not fall into the minor category of injuries for the purposes of assessing damages in the Book of Quantum, since there is no correlation between the two concepts of minor should the High Court decide to refer to the Book of Quantum. However, this raises the status of the Book of Quantum in relation to Garda Compensation claims. (VI) Resources of the defendant are irrelevant to the calculation of damages 62. The principles which apply to the assessment of damages apply equally to all defendants irrespective of means. Thus, the fact that the payer of the compensation in Garda Compensation cases is the State, which has considerable but not unlimited resources has no bearing on this Court’s assessment of the amount of damages which should be paid to an injured garda. (VII) Existence of insurance is irrelevant to the calculation of damages (VIII) High Court must apply recalibration of damages by Court of Appeal
65. Since the Court of Appeal judgments inNolan v. Wirenski, Shannon v. O’SullivanandFogarty v. Coxinvolved a reduction by the Court of Appeal of the damages awarded by the High Court by 45%, 50% and 45% respectively, it seems clear that the recalibration of the damages to which Barr J. refers is a downwards recalibration of the awards, which in those cases approximated to a halving of the awards. Downward recalibration will apply to Book of Quantum if relied upon 67. Since the Book of Quantum was published in 2016 and deals with awards and assessments made in and prior to 2016, this means that in having regard to the Book of Quantum, this Court must also take account of the very significant downwards recalibration of personal injury awards by the Court of Appeal to which Barr J. refers, which has taken place since the publication of the Book of Quantum. As this Court is obliged simply to have regard to the Book of Quantum in civilian personal injury cases, it is clear that it is not obliged to expressly follow a particular band or category of monetary figures set out therein. 68. However, if after having regard to the Book of Quantum, this Court decides to place reliance on a particular figure therein, it seems clear that it should only do so after consideration has been given to whether the figure should be recalibrated downwards in light of the Court of Appeal decisions in 2016 and 2017 to reduce High Court damages awards, in some cases by 45% - 50%. This is because the Book of Quantum is a catalogue of personal injury awards from,inter alia, the High Court in 2013 and 2014 (see page 5 of the Book of Quantum). Other principles High Court is obliged to apply to calculation of damages
• proportionate within the scheme of awards for personal injury damages; • objectively reasonable in light of the common good and social conditions. 71. The first principle, which this Court is obliged by the Court of Appeal in theWirenskicase to apply, is that the level of the award must be fair to the plaintiff (the garda) and the defendant (the State). Fairness to the garda is a straightforward concept in that the amount of money must be sufficient to constitute a fair amount of compensation for the injury suffered. When the defendant is the State, this Court interprets the concept of the amount of the award being ‘fair to the State’ as meaning that the amount of money which the State is required to pay should be fair to the person paying or funding it, and in Garda Compensation cases it is the taxpayer who is funding the compensation. Being fair to State means ensuring that awards paid by State are not such that, in the words of McMenamin J (see para [73] below) they do not lead to an increase in tax or a reduction in social services. As previously noted, the fact that the State has considerable resources does not, in this Court’s view, mean that it should be treated any differently to any other defendant in a personal injuries action. THE PROPORTIONATE PRINCIPLE (X) Award to be proportionate to the scheme of awards and ‘cap’ on damages 72. The second principle, which this Court is obliged by the Court of Appeal in theWirenskicase to apply, is that the level of the award must be proportionate to the general scheme of awards for personal injuries, including the ‘cap’ on damages (noted below to be €450,000) which this Court refers to as the ‘proportionate principle’. 73. This principle was also recognised by MacMenamin J. in the Supreme Court case ofKearney v. McQuillan[2012] IESC 43 at para 27, where he explains the rationale for, inter alia, ensuring that damages awards are proportionate to the scheme of awards for other personal injuries. As previously noted, the general scheme of awards for personal injuries has a ‘cap’ on the amount of damages that can be awarded for general damages/pain and suffering. The rationale for ensuring that awards are proportionate to the capped scheme, he concludes, includes increased insurance costs (relevant to civilian personal injury claims which are paid by insurance companies) and increased taxation and reduced social services (relevant to Garda Compensation claims which are paid out by the general exchequer):
The ‘cap’ on damages for pain and suffering is €450,000
The mechanics of ensuring that awards are proportionate to the ‘cap’
Four types of injuries to be considered when applying proportionate principle
(ii) middle ranking injuries, (iii) serious injuries (such as a loss of a limb) and (iv) catastrophic injuries (such as quadriplegia). High Court must avoid ‘concertina effect’ in assessing damages 81. The Court of Appeal makes it clear that the High Court must, when awarding damages for modest injuries and middle ranking injuries, make sure that they are proportionate to serious injury awards, which themselves must be proportionate to awards for catastrophic injuries. Otherwise, if awards for modest injuries and middle ranking injuries are within, or close to, the range for serious injuries, the Court of Appeal has pointed out that this would amount to ‘an injustice and unfairness’. It seems clear that the injustice and unfairness to which the Court of Appeal is referring is one which is visited upon the person with a serious injury, such as the loss of a limb, who discovers that someone who has a modest injury or a middle ranking injury is awarded damages for pain and suffering which are close to the damages he has received. 82. When applying the'proportionate principle' to modest and middle ranking injuries in Garda Compensation cases, this Court is obliged by the Court of Appeal in thePayne caseto avoid the'concertina type effect', whereby high awards for modest injuries drives up awards payable for middle ranking injuries. In that case, which involved soft tissue injury to the shoulder, neck and back of the plaintiff, the Court of Appeal explained this rationale at para. 18 as follows:
The imaginary scale to use when applying the proportionate principle
Using the proportionate principle in this case
THE AVERAGE EARNINGS PRINCIPLE (X) Awards to be reasonable in light of common good and social conditions 87. The perception of what is in the common good will vary depending on the particular circumstances of a personal injuries case. Although it is unlikely to be a regular occurrence, it could well be necessary, in the particular circumstances of a case, for reference to be made to the common good in assessing damages. For example, in rare circumstances, it is possible that the common good might necessitate an award of exemplary damages to indicate the court’s disapproval of a party’s actions. 88. The focus of this judgment is however on the relevance of ‘social conditions’ to the level of a general damages award, which in this Court’s view will apply in every case where an award is made for pain and suffering. This is because the term ‘social conditions’ is, in this Court’s view, a much more specific term than ‘common good’ and accordingly capable of being of concrete assistance in assessing how much compensation should be paid in respect of a particular personal injury. This arises from the fact that the term'social conditions' seems to refer, inter alia, to the average earnings of persons in the State. In interpreting'social conditions' in this manner, this Court relies on the judgment of O'Higgins C.J. inSinnott v. Quinnsworth[1984] 523. At p. 532 of that judgment, he stated that in determining whether a figure for general damages was fair and reasonable:
89. In that case, in determining the appropriate level of general damages for personal injuries, Quirke J. makes it clear that account must be taken of ‘economic realities’ and in particular to'individual disposable incomes' which he regards as a relevant factor in the measurement of'contemporary standards' and in particular current 'social conditions' (which is the same expression used by the Court of Appeal in theWirenskicase). He clarifies why disposable incomes have no relevance to pecuniary loss or special damages, but are relevant to general damages or non-pecuniary losses, at p. 18 of his judgment:
“A distinction exists… between the task of the court when determining the level of pecuniary loss and when determining the level of non-pecuniary loss. In the case of pecuniary loss, and issues such as that which engaged the House of Lords in Wells v. Wells, the court is only required to make the correct calculation. Economic consequences are then irrelevant. When the question is the level of damages for non-pecuniary loss the court is engaged in a different exercise. As we have said, it is concerned with determining what is the fair, reasonable and just equivalent in monetary terms of an injury and the resultant PSLA. The decision has to be taken against the background of the society in which the court makes the award.” Those observations and the distinction identified by Lord Woolf between pecuniary loss (compensated by special damages) and non-pecuniary loss (compensated by general damages) are quite consistent with the principles and further distinctions identified by the Supreme Court inSinnott v. QuinnsworthandM.N. v. S.M. Hence, the need for the courts to hear evidence of and to consider “contemporary standards and money values” when assessing and calculating the limit or “cap” to be imposed on awards for general damages from time to time. It was confirmed in evidence that this country is presently enduring a period of unprecedented recession. There has been a significant drop in individual disposable income and it is anticipated that this will become more acute during the next several years. Wealth and living standards have declined appreciably and economic growth has been replaced with contraction. Those factors are relevant to the measurement of “contemporary standards” and current “social conditions” within this country and it can be validly argued that, in general, awards of general damages should reflect such economic realities.” 91. Based on the foregoing caselaw, it seems clear therefore that this Court must have regard to the general levels of income when assessing how much damages to award for pain and suffering in personal injury cases. 92. Furthermore, this Court believes that the general level of incomes or average industrial earnings (which this court refers to as the ‘average earnings principle’) is a very useful tool, in conjunction with the 'proportionate principle', in calculating an appropriate figure for compensation, particularly when one is dealing with modest or middle ranking injuries, which in severity are a long way from catastrophic injuries, for which €450,000 is the ‘cap’ on general damages. This is because for very minor injuries in particular, it may be difficult to even contemplate that the injury is any way referable or even on the same scale as quadriplegia, e.g. a wound which required stitches but which fully healed without visible scarring, which is the type of personal injury case sometimes heard in the High Court under the Garda Compensation Act. For such injuries a touchstone such as the average earnings in the State can, in this Court’s view, help with the assessment of damages in conjunction with the proportionate principle. 93. The touchstone amount is not what an unemployed person might get per annum on job seeker’s allowance (circa €10,000 per annum) or what a pensioner receives (circa €13,000). On the other hand the touchstone amount is not what a successful lawyer or other successful professional or business person earns per annum, which is likely to be many multiples of these amounts. Rather the touchstone is the average earnings of everyone in the State from those on social welfare up to and including those on the highest salaries. The logic of this approach seems to this Court to be that pain and suffering does not discriminate between the wealth of victims and if one is unemployed or wealthy, the calculation of pain and suffering should be based on the average. In this instance, it means that the average earnings of a person in Ireland is to be used as a touchstone in deciding on the appropriate level of damages for pain and suffering for personal injuries. What are average earnings in Ireland? 95. Accordingly, it is to this figure of €45,611 per annum, which this Court will refer as the ‘average earnings’ or the ‘general level of incomes’ (to use the expression used by O’Higgins C.J.), in order to determine what is a fair and reasonable amount of compensation in a particular case, as required by the Supreme Court and the Court of Appeal. Since one is dealing with abstract notions of valuing personal injuries, one concrete way (but by no means the only one) to seek to use the average earnings to calculate a figure for compensation is to ask the following question:
what period of time would it be reasonable to 'notionally' require that defendant to work full time and hand over his entire salary to the injured plaintiff, in order to compensate the plaintiff for the defendant’s negligence which caused the injury?’
97. It is clear from theWirenskicase that the relevance of ‘social conditions’ in the State and in particular the ‘average earnings principle’ is to be used in addition to the ‘proportionate principle’ (i.e. proportionate to the general scheme of awards and the ‘cap’ of €450,000), when calculating general damages. Thus, this Court must apply both principles as well as the first principle that the final award be fair to the injured party and the payer of the compensation. One way to applyWirenskito a particular case is:
• Second ask, is that resulting figure, say if it is €45,000 or €22,500 or €4,500 (to take examples) a proportionate award, bearing in mind that it is 10% or 5% or 1% (as the case may be) of the ‘cap’ of €450,000 of general damages that is awarded for pain and suffering for a catastrophic injury such as quadriplegia. Advantage of average earnings principle for ordinary citizens (XI) Court must apply scepticism to claims seeking damages 101. In that case, O’Donnell J. (at para. 22) made the following comments regarding claims for damage in the context of a damages award by the High Court, which the Supreme Court reduced by over 50%:
[…] This is not a reflection of the honesty of witnesses, rather it is human nature. Persons involved in routine car accidents will regularly tend to recall events in a way which discounts or avoids their own culpability. It is not unusual to give ourselves the benefit of the doubt, in any field, and all the more so when the stakes are high… In many cases courts must sift through differing accounts at some remove in time from the facts, and do their best to allow for human error and the tendency for memories and consequently accounts to become subtly and unwittingly adjusted under the focus of the case, and in light of the consequences of failure… Courts must, and do, try to bring an appropriate scepticism therefore to their task at each stage of litigation.” 103. In this regard, it is clear that the more pain and suffering an injured party claims he/she has suffered, the more likely his/her action for damages will be successful. In light of this Supreme Court decision, the courts need therefore to be conscious of the fact that it is simply human nature for any person who chooses to institute litigation to wish to be successful in that litigation and so avoid the ‘consequences of failure’. 104. It is also clear from this judgment that the more serious the injury then it is likely that the ‘stakes are high’ for the injured party and there may be a greater risk of the injured party giving himself/herself the benefit of the doubt. 105. In a personal injuries case, this means that the court should, in the words of O’Donnell J. approach Garda Kampff’s claims regarding the effect of the injury on him and the pain and suffering he experienced, by applying common sense and a degree of scepticism. Submissions on quantum 107. It is not clear to this Court why in civilian personal injury cases submissions are not made, but in cases involving personal injuries to gardaí, submissions on quantum are made. In any event, to the extent that practitioners decide to make submissions to this Court, it is clear from the caselaw and the statutory provisions referred to in this judgment that the most important issue is not the Book of Quantum, but the proportionate principle and the average earnings principle to which the Supreme Court and Court of Appeal have made reference. To the extent that reference is made to the Book of Quantum, it seems clear from the recent recognition by the High Court inSeligmanand other cases, of the recalibration of awards of damages in personal injury cases, that reference should be made to the appropriate downward ‘recalibration’ of those amounts in the Book of Quantum, where relevant. 108. It is however clear that if an amount is to be suggested by counsel the appropriate basis for counsel making a submission to this Court, that the award should be €X, is not simply to pick that figure out of thin air but, that it should be that €X is the appropriate figure for pain and suffering for the injury in question because: Proportionate to ‘cap’ of €450,000?
Application of proportionate and average earnings principles to this case Counsel suggests circa €21,700 award for soft tissue injury to hand “E. Hand Soft Tissue
112. In addition, such an award, for what is a modest injury, would in this Court’s view visit an injustice and unfairness on those who suffer middle ranking injuries who might receive damages that are only modestly different from those suffering bruising to a hand, if such an award was to be made, and this would create a concertina effect between modest injuries and middle ranking injuries, contrary to the stated need in theWirenski caseto avoid such an eventuality. 113. Applying the three principles from theWirenskicase to Garda Kampff’s case, this Court would ask the following questions: Proportionate principle Average earnings principle 116. In this Court’s view, this would not be fair and €21,700 is many multiples of a fair award for this type of injury. This Court concludes that the sum of €5,000 is reasonable compensation for the injury suffered, being over a month’s salary of a person on average earnings (or 1.1% of the ‘cap’ on damages). Fair to the garda and the State Application of scepticism and common sense to claims for damages 119. It is important to emphasise that this is not a reflection of the honesty of Garda Kampff, and this Court had no reason to doubt his honesty.. Rather it is because, as noted by the Supreme Court, of human nature. It is human nature for a person who is involved in litigation to wish to be as successful as possible in that litigation and avoid the consequences of failure. As noted by the Supreme Court, this human nature can lead to litigants giving themselves the benefit of doubt, which is combined with the tendency of memories and consequently accounts to become subtly and unwittingly adjusted under the focus of litigation. 120. Thus, while Garda Kampff did state in his evidence before this Court that it was one year before his hand was better, it is this Court’s view that some degree of scepticism and commons sense needs to be applied to this claim in light of the undisputed medical evidence regarding the nature of the soft tissue injury to his hand. Applying this approach leads also to this Court’s assessment of a figure of €5,000 for pain and suffering, without impugning Garda Kampff’s honesty to any degree. CONCLUSION 122. Applying the proportionate principle and the average earnings principle, which this Court is obliged to do, rather than relying on the Book of Quantum which is a non-binding guide, led this Court to conclude that the appropriate figure for pain and suffering is €5,000, which is over a month’s salary based on average earnings in Ireland. 123. The notion that modest soft tissue injuries should receive anything close to a half year’s average earnings is a very significant issue for the citizens of the State since, to refer again to the Supreme Court judgment inKearney v. McQuillan:
125. Finally, in assessing damages for pain and suffering in all personal injury cases, the principles enunciated by the Court of Appeal and the Supreme Court make it clear that:
• Secondly, to the extent that reliance is placed on the Book of Quantum, this Court must consider the effect of the recent downward recalibration, in some cases of 45-50%, by the Court of Appeal on awards of damages for personal injuries, • Thirdly, this Court must determine if the proposed amount for damages for pain and suffering for the personal injury in question is proportionate, bearing in mind that the cap on damages for pain and suffering is €450,000 for a catastrophic injury such as a paraplegia, and • Fourthly, this Court must determine if the proposed amount is reasonable in light of the fact that it takes an average person a month to earn €3,800 and a year to earn €45,611. |