PXT v (A Child by her Mother and Litigation Friend, AXD)
[2024] EWHC 1372 (KB)
GWS & Ors v St Thomas Becket Catholic Primary School
22 December 2023
[2023] EWHC 3321 (KB)
High Court
A child received money for injuries. His lawyers wanted to put the money in a special trust account for safekeeping and investment. The judge said no, as it was too expensive. It's better and cheaper to keep the money in the court's own account until it is needed for the child’s treatment.
Key Facts
- •7-year-old claimant suffered serious burns in a school accident.
- •Liability is not in dispute.
- •Claimant received interim payments totaling £430,000.
- •Concerns about potential psychological issues in adolescence.
- •Approximately £140,000 remains in the solicitor's client account.
- •Application to approve a bare trust for managing the remaining funds.
- •Concerns about solicitor's client account rules and long-term fund management.
Legal Principles
Court approval required for settlements, compromises, or payments involving children (protected parties).
CPR r 21.10
Court directions govern how money recovered on behalf of a child or protected party is handled.
CPR r 21.11
Court can approve setting up a trust to administer payments to a child.
CPR r 21.11 and White Book footnotes at 21.11.3
Solicitors cannot use client accounts to provide banking facilities; client money must be returned promptly.
Solicitors Accounts Rules 3.3 and 2.5
Court considers each case on its merits regarding the management of child funds.
Judge's statement in section 28
Recoverability of trust setup and maintenance costs is not guaranteed and needs to be assessed on a case-by-case basis.
Various case law cited (Clerk v Greater Glasgow Health Board, OH v Craven, LW v Hammersmith Hospital NHS Trust)
Outcomes
Application to approve the bare trust rejected.
Costs of the trust option outweigh benefits; Court Funds Office can effectively manage funds; concerns about cost recoverability.
Funds to be paid into the Special Account.
Cost-effective and efficient method for managing interim funds; aligns with the best interests of the claimant.