QUEENS BENCH DIVISION
ADMINISTRATIVE COURT
Strand, London, WC2A 2LL | ||
B e f o r e :
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The Queen on the application of DB | Claimant | |
- and - | ||
Criminal Injuries Compensation Appeal Panel | Defendant |
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Smith Bernal Reporting Limited, 190 Fleet Street
London EC4A 2AG
Tel No: 020 7421 4040, Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
Robin Tam (instructed by the Treasury Solicitor) for the Defendant
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AS APPROVED BY THE COURT
Crown Copyright ©
Mr Justice Stanley Burnton:
Introduction
“(DB) between eleven and sixteen
After the diagnosis of (DB’s) illness his general health improved. He began to gain weight and to grow. Although this was great to see he became increasingly difficult to lift and carry. This resulted in me injuring my back and neck on many occasions and I underwent various treatments by osteopaths. (DB) as before still needed total care and still had disturbed nights.
…
(DB) aged between sixteen and twenty
… Recently I have again started to suffer with back and neck problems and I am having another course of treatment from the osteopath.”
“Currently (DB) is looked after by his adoptive mother, who is aged 46 years, with the help of her partner, who is aged 47 years. They are both in good general health, but are suffering with neck and back problems and will not be able to continue looking after (DB) in the long term without a team of carers to give them respite. Mrs (B) does not want him to go into a home and is very keen that he should remain in future with the family with paid support. …”
“(DB) is reliant on maximal assistance for all mobility functions.
1. Transfers: (DB) is lifted for all “transfers” onto or off the armchair, wheelchair, or bed. I observed that (Mrs B) achieves this by holding (DB) by the rigid framework of the splint. This places unacceptable strain on (Mrs B’s) back and neck and places her at a high risk of injury to her back. She reported that she now experiences pain in her neck and back, for which she has regular osteopathy treatment. This is not at all surprising given the number of times she has to lift (DB) in a typical day.”
“In considering the claim for future care there were three issues. They were:
(1) First the overall period for which care would be necessary. This would depend on the applicants life expectancy.
(2) Secondly, for how long (Mrs B) and her partner would continue to care for the applicant. Her case was that a full time professional care regime would start and should be paid for almost immediately.
(3) Finally, what the fair rate should be for professional care provided. This was in our view pitched high in the applicant’s care reports. Various figures of the order of £100,000 a year were submitted. Maggie Sargent’s report suggested £98,578 for year 1 and £95,578 p.a. thereafter. The applicant’s schedule put the first nine months at £74,984 (£100,000), thereafter at £99,308 a year.”
The Panel referred to Mrs B’s evidence, including her evidence that she had a bad back and required help with DB and that she and her partner were finding it more difficult to cope; and that it was her intention to employ professional carers for DB. She had told them that she hoped the family would be in a position to move into their new home in August 2001. The written reasons continued:
“On the issue of future care we did not consider that (Mrs B) would cease caring for (DB) as soon as the new home was purchased. She had looked after (DB) and her other adopted child in a wholly remarkable maternal fashion, and we did not accept that she would, or would be able to change so far as (DB) was concerned and run a regime staffed by professionals in a virtual annex to her home. We were firmly of the opinion given her age and physical health that she would continue with the present system which she said was in (DB’s) best interest. This accorded with the way she ran her life and followed from (DB’s) adoption. There was no medical evidence before the Panel to support the suggestion that (Mrs B’s) back prevented her caring for (DB), nor was it supported by her appearance before us or on the video. However, we considered it was likely that after some years she would require increasing assistance towards the end of (DB’s) life.
She was aged just 47. Our initial view was that she would continue for 10 years, but we revised that to a period which provided a multiplier of 7 years. In the light of that view, for the initial period represented by the 7 year multiplier, we used the annual rate which we considered appropriate for past care. We awarded £10,000 per annum for 7 years, in total £70,000.
We considered that (DB) would receive some professional care after the period represented by the initial multiplier of 7 years. The claim for the cost of future care by professional carers was set out in detail in the applicant’s schedule at £99,308.74 per annum. We considered figures of that order were too generous to the applicant, were unlikely to be implemented, and that (Mrs B) would continue to have input into his care. We looked with care at the schedule and we assessed the cost of (Mrs B’s) continued participation together with a likely increase for the cost of professional future care as being £350,000 which equated to a multiplier of 7 x £50,000, for the balance of the overall multiplier of 14 years. The figure of £50,000 was assessed as the value we put on (Mrs B’s) continuing care together with what we considered it would be necessary to pay for additionally for professional care. We added that the £70,000 from the first 7 year period and rounded the calculation up to a figure of £425,000.”
Insufficiency of reasons
“A party appearing before a tribunal is entitled to know, either expressly stated by it or inferentially stated, what it is to which the tribunal is addressing its mind. In some cases it may be perfectly obvious without any express reference to it by the tribunal; in other cases it may not. Second, the appellant is entitled to know the basis of fact on which the conclusion has been reached. Once again in many cases it may be quite obvious without the necessity of expressly stating it, in other cases it may not.”
“It is not a useful task to attempt to make absolute rules as to the requirement for the judge to give reasons. This is because issues are so infinitely various. For instance, when the court, in a case without documents depending on eye-witness accounts is faced with two irreconcilable accounts, there may be little to say other than that the witnesses for one side were more credible: see de Smith, Woolf and Jowell, Judicial Review of Administrative Action, 5th ed. (1995), pp. 465-466, para. 9-049. But with expert evidence, it should usually be possible to be more explicit in giving reasons: see Bingham L.J. in Eckersley v. Binnie (1988) 18 Con. L.R. 1, 77-78:
“In resolving conflicts of expert evidence, the judge remains the judge; he is not obliged to accept evidence simply because it comes from an illustrious source; he can take account of demonstrated partisanship and lack of objectivity. But, save where an expert is guilty of a deliberate attempt to mislead (as happens only very rarely), a coherent reasoned opinion expressed by a suitably qualified expert should be the subject of a coherent reasoned rebuttal, unless it can be discounted for other good reasons. The advantages enjoyed by the trial judge are great indeed, but they do not absolve the Court of Appeal from weighing, considering and comparing the evidence in the light of his findings, a task made longer but easier by possession of a verbatim transcript usually (as here) denied to the trial judge.”
We make the following general comments on the duty to give reasons.
(1) The duty is a function of due process, and therefore of justice. Its rationale has two principal aspects. The first is that fairness surely requires that the parties especially the losing party should be left in no doubt why they have won or lost. This is especially so since without reasons the losing party will not know (as was said in Ex parte Dave [1994] 1 WLR 98) whether the court has misdirected itself, and thus whether he may have an available appeal on the substance of the case. The second is that a requirement to give reasons concentrates the mind; if it is fulfilled, the resulting decision is much more likely to be soundly based on the evidence than if it is not.
(2) The first of these aspects implies that want of reasons may be a good self-standing ground of appeal. Where because no reasons are given it is impossible to tell whether the judge has gone wrong on the law or the facts, the losing party would be altogether deprived of his chance of an appeal unless the court entertains an appeal based on the lack of reasons itself.
(3) The extent of the duty, or rather the reach of what is required to fulfil it, depends on the subject matter. Where there is a straightforward factual dispute whose resolution depends simply on which witness is telling the truth about events which he claims to recall, it is likely to be enough for the judge (having, no doubt, summarised the evidence) to indicate simply that he believes X rather than Y; indeed there may be nothing else to say. But where the dispute involves something in the nature of an intellectual exchange, with reasons and analysis advanced on either side, the judge must enter into the issues canvassed before him and explain why he prefers one case over the other. This is likely to apply particularly in litigation where as here there is disputed expert evidence; but it is not necessarily limited to such cases.
(4) This is not to suggest that there is one rule for cases concerning the witnesses truthfulness or recall of events, and another for cases where the issue depends on reasoning or analysis (with experts or otherwise). The rule is the same: the judge must explain why he has reached his decision. The question is always, what is required of the judge to do so; and that will differ from case to case. Transparency should be the watchword.”
Error of law
“I approach, first, the judge's assessment of the future loss in this respect. It has been energetically argued by Mr. Bennett, for the defendants, that before future loss of capacity to undertake housekeeping duties can properly be assessed at the estimated cost of employing some third person to come in and do that which the plaintiff is unable to do for herself, the plaintiff has to satisfy the court that she has a firm intention in any event that such a person shall be employed. For my part, I am quite unable to see why that should be so. Once the judge had concluded, as this judge did, that, to put the plaintiff, so far as money could do so, in the position in which she would have been if she had never been injured, she was going to need, in the future, domestic assistance for eight hours a week, it seems to me that it was entirely reasonable and entirely in accordance with principle in assessing damages, to say that the estimated cost of employing labour for that time, for an appropriate number of years having regard to the plaintiff's expectation of life, was the proper measure of her damages under this heading. It is really quite immaterial, in my judgment, whether having received those damages, the plaintiff chooses to alleviate her own housekeeping burden, which is an excessively heavy one, having regard to her considerable disability to undertake housekeeping tasks, by employing the labour which has been taken as the basis of the estimate on which damages have been awarded, or whether she chooses to continue to struggle with the housekeeping on her own and to spend the damages which have been awarded to her on other luxuries which she would otherwise be unable to afford.”
“As a matter of strict logic it might seem to follow from that that the same reasoning ought to apply to the period elapsing before trial, but if that is the strictly logical conclusion, then I think there is a fallacy in the logic somewhere. Looking at the matter as one not so much of logic as of practical reality, the fact is that the plaintiff is unable to say that she has incurred the cost of employing the labour which no doubt she needed in the years which intervened between the accident and the trial, ignoring the times when she was in hospital. What she has done and what she has had to do for lack of means to do otherwise, has been to manage as best she could with all the disabilities from which she was suffering and with the assistance of such help as her husband and daughter were able to give her.
Mr. Hamilton, for the plaintiff, has argued strenuously that the judge's award under this head, the figure of £2,691 based on 299 weeks' domestic help at £9 a week, can be understood as his evaluation of the domestic help which was rendered to the wife by her husband and daughter; but, although this may have been pleaded and argued, I can find no trace of any such finding in the reasoning of the judge's judgment. With the utmost respect to the judge, I cannot think that, as a matter of principle, it is a correct method of evaluating what is essentially an element in the plaintiff's pain and suffering and loss of amenity, caused by the additional difficulties she had had in doing her housekeeping work, to take the figure which it would have cost her to employ someone, whom she has not in fact employed in the past, to take that burden off her shoulders.”
“Before we consider various regimes of care, etc., a word of warning may be in order. It is highly desirable that the appropriate regime be put in operation as soon as possible. Not only does this provide the claimant with what he requires to alleviate his condition, but it makes it much more difficult for a defendant to attack the cost of such regime as extravagant or the regime unlikely to be adopted [sic]. Courts look with some scepticism on expense regimes which are not in operation by the time of the trial. An instance is provided by the Court of Appeal’s reaction in Havenhand v Jeffrey.
“The award depends on four premises based on the balance of probabilities:
(1) That the level of day and night care within her home contended for was in fact required;
(2) That the total regime would be put into immediate effect from the date of judgment;
(3) That this regime would continue for the rest of her life;
(4) That the reasonable cost of providing this level of care was a staggering £46,791 per annum, or almost £900 per week.
There is reason to doubt each of these premises. The level of day and night care was not in place before, or at the time of, trial. The level of actual provision fell well below that, notwithstanding an interim payment and the undoubted availability of further interim payments if required. More significantly, the regime has not even now been put into effect. The explanation given is that the plaintiff wished to be cautious in view of the impending appeal. I regret that I cannot accept this as the sole explanation.
….
It is never a pleasurable task to reduce a plaintiff's damages, particularly for a person of indomitable spirit who has coped so courageously with the disastrous effects of an accident. However, it was most unfortunate, in my view, that the magnitude of the plaintiff's claim for future care was only made apparent in the last few weeks before trial. The defendant showed an admirable sense of responsibility by not seeking an adjournment in view of the plaintiff's advancing years. Even so, it behoved the Judge to scrutinise closely this aspect of the claim, and not to accept without question the premise upon which the claim was advanced.”
“Where the needs of an injured plaintiff are and will be supplied by a relative or friend out of love and affection (and, in cases of little children where the provider is parent, duty) freely and without regard to monetary reward, how should the court assess ‘the proper and reasonable cost’? There are two extreme solutions: (i) assess the full commercial rate for supplying the needs by employing someone to do what the relative does; (ii) assess the cost at nil, just as it is assessed at nil where the plaintiff is cared for under the national health scheme, but let me say at once that the defence in the present case has not contended for the second solution. The reason why a nil assessment is made where the plaintiff is to be looked after under the national health service is because no expense will be incurred in supplying the needs (see the speech of Lord Scarman in Lim Poh Choo v Camden and Islington Area Health Authority at 918, [1980] AC 174 at 187–188). It follows that in assessing the ‘proper and reasonable cost of supplying the needs’ each case must be considered on its own facts, but it is not to be assessed regardless of whether it will be incurred.
The earlier cases were mostly concerned with recovering earnings lost by the caring relative as a result of looking after the plaintiff. The more recent cases show that substantial sums have been assessed when the relative has not given up any employment. In Taylor v Glass (23 May 1979), referred to in Kemp and Kemp The Quantum of Damages vol. 2, para 1—715, Smith J assessed the loss on the open market rate, it having been agreed that if what the parents did had to be bought on the open market the cost would be £50 per week. In Moser v Enfield and Haringey Area Health Authority (1982) 133 NLJ 105, referred to in Kemp and Kemp The Quantum of Damages vol. 2, para 1—721, Michael Davies J assessed the mother’s care at £3,000 per annum out of a total of £12,000 per annum for future care. Very often we find rates being agreed and, as is shown by the approach of the judge in the present case, regard is had to what it would cost to buy the services in the open market, but it is scaled down.
I have found this a very difficult problem. For the reasons given by Megaw LJ in Donnelly’s case, I am very anxious that there should be no resurrection of the practice of plaintiffs making contractual agreements with relatives to pay for what are in fact gratuitous services rendered out of love. Now that it is established that an award can be made in the absence of such an agreement, I would regard an agreement made for the purposes of trying to increase the award as a sham. I suspect that the proper assessment has been influenced by the status of the money. In Cunningham v Harrison [1973] 3 All ER 463 at 469, [1973] QB 942 at 952 Lord Denning MR said that the money would be held in trust for the wife. This statement was obiter, and although we have heard no argument on this point it seems to me to be inconsistent with the reasoning in Donnelly v Joyce. Once it is understood that this is an element in the award to the plaintiff to provide for the reasonable and proper care of the plaintiff and that a capital sum is to be available for that purpose, the court should look at it as a whole and consider whether, on the facts of the case, it is sufficient to enable the plaintiff, among other things, to make reasonable recompense to the relative. So, in cases where the relative has given up gainful employment to look after the plaintiff, I would regard it as natural that the plaintiff would not wish the relative to be the loser and the court would award sufficient to enable the plaintiff to achieve that result. The ceiling would be the commercial rate. In cases like the present I would look at the award of £108,550, remembering that there is in that sum a sum of £39,000 over and above the sum required to provide the expected outgoings, and ask: is this sufficient to provide for the plaintiff’s needs, including enabling her to make some monetary acknowledgment of her appreciation of all that her mother does for her? I would also ask: is it sufficient for this plaintiff should her mother fall by the wayside and be unable to give as she gives now? I have no doubt that in this case the answer is Yes to both questions.
The court is recognising that part of the reasonable and proper cost of providing for the plaintiff’s needs is to enable her to make a present, or series of presents, to her mother. Neither of the extreme solutions is right. The assessment will be somewhere in between, depending on the facts of the case.
I would not interfere with the judge’s final assessment of £3,000 per annum as the provision for the mother’s care. As I have said, I think that he omitted to make any provision for giving Mrs Housecroft a break, but when this is capitalised at £7,000 it is substantially less than the amount by which I think that the judge was over-generous in his assessment for pain, suffering and loss of amenity. I would not make any increase in the award under this head.”
Unreasonableness and failure to take into account relevant evidence
“Experience suggests that a claim of this sort in the Civil Courts even if disputed would expect to attract damages of approximately £2m.. It is difficult to imagine a High Court Judge approving a settlement on behalf of a patient of £1,349,000 (the award with minimal benefit deduction) when the undisputed evidence is of a claim of £2,616,784.”
“… are both in good general health, but are suffering with neck and back problems and will not be able to continue looking after (DB) in the long term without a team of carers to give them respite.”
The italics are mine. This statement did not suggest that the condition of Mrs B’s back was such as to make her replacement by a team of carers immediately necessary. Furthermore, Mrs Sargent advised that a suitable hoist system should be installed in DB’s home. DB’s claim before the Panel included, as Item M.14, the cost of about £19,000 of a hoist system. The Panel’s award included £110,000 for equipment (as against £152,227 claimed), and they may have assumed that such an important item as a hoist system would be purchased out of that sum, and that with such a system Mrs B would be able to continue to care for her son for some years despite her bad back.
“…did not accept that she would, or would be able to change so far as (DB) was concerned and run a regime staffed by professionals in a virtual annex to her home.”
Mr Whitfield criticised the reference to the proposed conversion of the bungalow that DB wished to buy as a “virtual annex”. The drawing of the proposed ground floor plan of the building shows that the rooms that would be occupied by DB and his carer would have limited access from the remainder of the building. The only entrance / exit appears to be from the covered way at the rear of the building. I do not think that the description of the rooms for DB and his carer as a “virtual annex” was incorrect or misleading.
Conclusion
MR JUSTICE STANLEY BURNTON: My judgment has been distributed to the parties in draft and sets out the reasons for my rejection of the claimant in this case.
THE DEFENDANT: My Lord, I act for the defendant today and ask for the costs, those costs to be determined pursuant to CPR registration rule ---
MR JUSTICE STANLEY BURNTON: That means you only get such an amount as it is reasonable to ----
THE DEFENDANT: That is correct.
MR JUSTICE STANLEY BURNTON: -- is the normal -- what used to be a football pools order. I understand that that is not opposed.
THE DEFENDANT: My Lord, I think agreement on that was reached late yesterday evening.
MR JUSTICE STANLEY BURNTON: So there will be an order in those terms.
THE DEFENDANT: My Lord, I am grateful.
MR JUSTICE STANLEY BURNTON: Copies of the judgment are probably available for reporters and press. I do not think it is as interesting as yesterday's.