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A recent case in the Court of Session has helped to clarify the position in relation to the amount of compensation which should be paid to the family members of mesothelioma victims for “loss of society”.

It is often the case that compensation payments for the more serious personal injuries include an element of damages to compensate for future loss.  This can include, for example, future loss of earnings or future costs of care.  When an injured party receives a lump sum award of damages for such future losses, a “discount rate” is applied by the courts when finalising the award.  This is to reflect the fact that the injured party is receiving the money up front and can be expected to earn money on the lump sum by investing it.

A new compulsory pre-action protocol for dealing with personal injury claims is set to come into force at the end of this month. A voluntary protocol currently exists but under the new regime, parties will require to engage with each other and attempt to reach a resolution to the claim prior to the commencement of court proceedings.