Key Facts
- •James William Wagstaff (93, protected party) suffered serious injuries in a car accident caused by William Murison.
- •Wagstaff sustained a subdural haematoma, subarachnoid haemorrhage, subgaleal haematoma, seizure, and other injuries.
- •Liability was admitted by Murison.
- •Wagstaff lacked capacity to litigate.
- •A settlement was reached with a gross lump sum of £320,000 plus periodical payments of £45,000 per annum.
- •Court approval was required due to Wagstaff being a protected party.
Legal Principles
Court approval is required for settlements involving protected parties.
CPR 21.10(1)
The court must act in the best interests of the protected person and have regard to the overriding objective.
Dunhill v Burgin [2014] UKSC 18
When approving periodical payments, the court considers the appropriateness of the payment structure, considering factors like the scale of annual payments and the preferences of both parties.
CPR 41.7 and Practice Direction 41BD
The court has power to approve payment of After the Event insurance premiums.
CPR 46.4(2)(b)(ii) and 46.4(3)
Outcomes
The court approved the settlement of £320,000 gross lump sum plus £45,000 annual periodical payments.
The settlement was deemed to be in the best interests of Mr. Wagstaff, considering the risks and uncertainties of litigation, and the expert financial advice received.
The court approved the payment of £2,632 for the After the Event insurance premium.
Court power under CPR 46.4(2)(b)(ii) and 46.4(3).
The Defence Insurer shall pay a further interim payment on account of costs in the total sum of £100,000.
Costs awarded to claimant.