Concern over small claims track guidelines
The guidelines, which are used by courts and legal practitioners to assess the damages in personal injury cases, show that as compensation rises in line with inflation, the small claims track is fast becoming obsolete.
Browne Jacobson has suggested the guidelines show a rise in awards, with an average increase of around 10.5% since the last edition, very much in line with the increase in RPI over the same period.
James Arrowsmith, specialist personal injury lawyer at Browne Jacobson, said: “The biggest concern is the effect on low value claims. The ninth edition of the guidelines includes just five categories of award, which extend into the small claims track limit (currently £1,000). By the time of the next edition, there may be no category of claim inside the small claims process.”
He also highlighted a further difficulty with the guidelines: “Over 90% of all personal injury claims are for less than £5,000. For instance, the lowest track for back injuries covers injuries lasting up to two years and the advice given by the guidelines on valuation is that the award should be ‘up to £5,000’. This gives little guidance to the practitioner assigning a figure to a case.
“What is needed in lower value claims is more certainty, with greater guidance offering less room for dispute. That will lead to a speedier resolution of claims with costs that remain proportionate.”
The lawyer explained it is important for the PI sector to ensure the small claims track, with all of its benefits, continues to be relevant.
“Track limits need to keep up with this rising value of awards so that minor injuries that were once eligible for small track claims do not fall out of this category,” James said.
Released bi-annually, the JSB Guidelines are widely acknowledged as a key source of reference for personal injuries practitioners and other professionals working in the sector. They are designed to provide a clear and logical framework for the award assessment of PI damages.