The Damages (Investment Returns and Periodical Payments) (Scotland) Bill (previously discussed by us here) was examined this month by the Economy, Energy and Fair Work Committee. The Committee received evidence, including formal evidence obtained at Committee meetings, to inform its report. The report was published on 3 December.

The Bill clarifies the methodology for calculating the discount rate for payments in personal injury actions. The discount rate is a percentage applied to personal injury awards to ensure that the correct amount of damages is paid. It is designed to take into consideration the notional rate of return if the sum received were invested.

The Committee welcomed the introduction of the Bill. While noting that only some personal injury cases will involve applying the discount rate, the Committee stated that, “the importance of the process to the individuals and families concerned is considerable; and – while not underplaying the differences of opinion between the defender and pursuer sides on the detail – we welcome the additional clarity and transparency provided by having the method for calculating the discount rate set out in legislation.”

The Committee noted that the Bill is designed to achieve greater fairness, regularity and credibility.

As personal injury solicitors, we are closely following the analysis of the Bill. Any movement to make the process fairer and more transparent is certainly to be welcomed, and we will keep our clients fully updated as the Bill continues its passage through Parliament.

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