ABI persuades Court of Appeal to re-open case unveiling damages uplift

The Association of British Insurers has persuaded the Court of Appeal to re-open the case in which it announced a 10% increase in general damages.

The ABI applied to intervene in Simmons v Castle [2012] EWCA Civ 1039. The 10% increase in damages was put forward by Lord Justice Jackson as part of his package of reforms to litigation costs.

A spokeswoman for the ABI said the 10% increase in general damages had always been anticipated, adding that it formed part of a carefully balanced package of measures introduced by the Legal Aid, Sentencing and Punishment of Offenders Act.

But she added that the effect of the Simmons decision was to give the 10% increase a retrospective effect.

“This represents a significant departure from Government policy and, left unchallenged, is likely to lead to increases in car insurance premiums and employers’ liability premiums,” the ABI’s spokeswoman said.

“The insurance industry is determined to reduce unnecessary costs and to resisting this decision, which is why we are pleased that the Court has agreed with the ABI’s submission to re-open the case.”

According to Litigation Futures, the Association of Personal Injury Lawyers and the Personal Injuries Bar Association have been given the opportunity to make submissions on the case.