Damages

Damages

A form of monetary compensation. The aim is to compensate the claimant by returning them to the position they were in prior to the incident - "restitutio in integrum."

Special (Pecuniary) Damages

Relate to aspects of the claim that can be precisely calculated. Includes loss of earnings up to the date of the trial, pre-trial medical expenses, and the cost of replacements/repairs (e.g., damage to property).

General (Non-Pecuniary) Damages

Cannot be precisely calculated. Includes pain and suffering (personal injury), future loss of earnings, future medical expenses, and loss of amenity.

Future Loss of Earnings (Calculation)

Calculated using the formula: Multiplicand x Multiplier. Multiplicand: The claimant's likely annual loss of earnings, considering factors such as earnings power and prospects of promotion. Multiplier: The number of working years the losses are likely to continue (takes lifespan into account).

Structured Settlements

Since the Damages Act 1996, courts have been open to structured settlements, where payments are made periodically, although damages are typically paid as a lump sum.

Duty to Mitigate Losses

The claimant has a duty to take reasonable steps to reduce their losses. Failure to mitigate could result in a reduction of damages awarded.