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Privy Council Considers Correct Approach To Discount And Adjustment Factors In Personal Injury Claims
Simon v. Helmot, PC (Guernsey), 07/03/12

The Privy Council held that if the evidence established that inflation would affect different heads of loss in different ways and that as a result, a given head of loss would be under-compensated for, it may be appropriate for different discount rates to be applied to different heads of loss. In addition, the Privy Counsel held that it may be appropriate to apply an adjustment to lump a sum which adjustment had the effect of increasing the multiplier if the evidence established that such an adjustment was required to ensure that the lump sum would be large enough to meet future losses (having regard to the effects of the principles of accelerated receipt). The Privy Council thus held that in the underlying personal injury case, the Court of Appeal of Guernsey had been correct to apply a discount rate of -1.5% for the earnings-related future losses and a discount rate of 0.5% for all other future losses.

April 19, 2012 В· Editorial Team В· Comments Closed
Posted in: Cases