Injury awards are too low, research claims

UK courts are awarding lower damages than they should in personal injury
cases, according to government-backed research.

Judges consistently underestimate the impact of disability on post-injury
earnings potential, said the report funded by the Economic & Social
Research Council.

A move to a US-style system that takes account of labour market information
in setting damages would result in a 25 per cent jump in average payouts, the
report added.

Men in particular would benefit – their awards are far lower here than in
the US.

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The researchers found problems with the way the courts do their
calculations. The person’s earnings at the time of the injury, less any
post-injury earnings potential, is multiplied by a figure representing the
number of years’ loss.

But they say the multiplier is not a precise or logical tool for calculating
damages. "In particular, [it] takes virtually no account of the factors
that influence the way an individual’s earnings change over time," the
researchers said.