A LAW to make provision for
compensation payments in personal injury cases in relation to the application
of a discount rate and periodical payment orders.
Adopted by the
States 29th January 2019
Order of Her Majesty in Council [date to be
Registered by the
Royal Court [date
to be inserted]
THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have
adopted the following Law –
In this Law –
“commencement date” means the date that this Law comes
into force under Article 7;
“discount rate” means the rate of return from the
investment of a sum awarded as damages for future pecuniary loss in an action
for personal injury;
“periodical payment order” means an order under Article 4(2).
(1) If a
court makes an award of damages for future pecuniary loss, in calculating the
award it must apply the discount rate subject to Article 6.
discount rate is –
if, at the time the first court order in an action for damages is made, future
pecuniary loss is expected to be incurred for a period not exceeding 20 years;
if, at the time the first court order in an action for damages is made, future pecuniary
loss is expected to be incurred for a period exceeding 20 years.
Chief Minister may, after consultation with the Bailiff, by Order amend the discount
rate, subject to paragraph (7).
States may, by Regulations, amend this Law subject to paragraphs (6)
and (7) to make such provision as the States think expedient in relation
to the discount rate, including making consequential amendments to this Law and
making provision for any matter to be included in a Schedule.
prejudice to the generality of paragraph (4), Regulations may, in
particular, make provision for –
process for determining the discount rate, including any requirements for consultation
and who may determine the rate;
creation of bodies who must be consulted during the process for determining the
discount rates to be specified for different types of case;
of whatever nature, to be taken into account in determining the discount rate,
including circumstances relating to such matters as economic sustainability,
affordability, and inflation, including wage inflation;
circumstances to be taken into account in different types of case;
making of rules of Court.
making provision in Regulations for determining the discount rate, the States
must take into account the return to be expected from a lower risk diversified
portfolio of investments.
discount rate must not be amended to a percentage less than 0%.
Tax (Jersey) Law 1961 amended
In the Income Tax (Jersey) Law 1961 after Article 142 there
is inserted –
to make Regulations relating to personal injury lump sum payments
The States may by Regulations
amend this Law so as to make provision for the taxation, including exemption
from taxation, of income arising from the investment of lump sum payments
awarded by a court by way of damages in respect of future pecuniary loss in
personal injury cases.”.
respect of personal injury claims this Article is without prejudice to a
court’s power under customary law before the commencement date to make an
award of damages other than by way of a lump sum before that date, but after the
commencement date this Law has effect notwithstanding any customary law.
court awarding damages for future pecuniary loss in respect of personal injury
may make an order that the damages must wholly or partly take the form of
court may not make a periodical payment order unless it is satisfied that the
continuity of payment under the order is reasonably secure.
the purposes of paragraph (3), the continuity of payment under a periodical
payment order is reasonably secure if –
order is enforceable against a Minister;
is protected by a scheme, statutory or otherwise, established under any
jurisdiction, such scheme being one which the court is satisfied gives
protection equivalent to the scheme established under section 213 of the
Financial Services and Markets Act 2000 of the United Kingdom; or
is subject to a guarantee given under Article 5(2) by the Minister for Treasury
and Resources in respect of that particular order.
periodical payment order may include provision for any of the following –
the party responsible for the payments to use a method (specified in the order
or to be selected by the party) under which the continuity of payment is
reasonably secure under paragraph (4);
how the payments are to be made;
the party responsible for the payments to take specified action to secure
continuity of payment.
a person has a right to receive payments under a periodical payment order, or
where an arrangement is entered into in satisfaction of an order which gives a
person a right to receive periodical payments, that person’s right under
the order or arrangement may not be assigned or charged without the approval of
the court which made the order and –
court must not approve an assignment or charge unless satisfied that it is necessary;
purported assignment or charge, or agreement to assign or charge, is void
unless approved by the court.
alteration of the method of payment under a periodical payment order is a
breach of the order unless the alteration of method has been approved by the
person who has an interest in the making or receipt of a payment under a
periodical payment order may apply to the court for a variation of the
provisions of the order on the ground that there has been a material change of
circumstances since the order was made.
the purposes of paragraph (8) a person may have such an interest if the
the recipient of the payment;
(b) is the
person making the payment; or
has an interest in the payment.
(10) For the
purposes of paragraph (8), the States may, by Regulations, make provision
for determining when there has been a material change of circumstances and when
an application can be made under that paragraph, including, without prejudice
to the generality of the foregoing, provision for –
to be taken into account in determining whether there has been a material
change of circumstances;
period of time that must elapse before an application or subsequent application
is made, with reference to such factors as may be specified in the Regulations,
including the nature of any change of circumstances or otherwise;
the leave of the Royal Court is required to make an application, whether in all
circumstances or in such circumstances as may be specified in the Regulations;
the provisions of a periodical payment order may or must limit the
circumstances in which an application under paragraph (8) may be made.
powers to make Rules of Court under Article 13 of the Royal Court (Jersey)
Law 1948 includes powers to make Rules
with respect to the varying of periodical payment orders.
for periodical payment orders made against public bodies
this Article “public body” means any of the following –
committee or other body established by a resolution of the States or by, or in
accordance with, standing orders of the States Assembly;
administration of the States;
Department referred to in Article 1 of the Departments of the Judiciary
and the Legislature (Jersey) Law 1965;
States of Jersey Police Force;
body (whether incorporated or unincorporated) prescribed by Order made by the
Minister of Treasury and Resources, such body being one which appears to the Minister
to exercise functions of a public nature.
Minister for Treasury and Resources may, in the name of the States, guarantee
the payments to be made by a public body under any particular periodical
payment order under Article 4.
guarantee under paragraph (2) is to be given on such terms as the Minister
for Treasury and Resources may determine.
sums required by the Minister for Treasury and Resources for fulfilling a
guarantee under this Article are to be defrayed out of the annual income of the
States and any sums received by the Minister by way of reimbursement or
interest shall be paid into the consolidated fund.
Regulation 9(7) of the Public Finances (Transitional Provisions) (No. 2)
(Jersey) Regulations 2005, borrowing by the States is
not to be taken to include the giving of a guarantee under this Article.
for damages commenced prior to the commencement of this Law
to paragraph (3), in an action for damages started before the commencement
discount rate applies to an award of damages made by a court (whether or not
following an appeal) on or after the commencement date unless it appears to the
court that to apply the rate would be contrary to the rights of a party to the
action under Article 6 of the European Convention on Human Rights; and
periodical payment order may be made by a court (whether or not following an
appeal) on or after the commencement date.
in respect of a court order made before the commencement date, there is no
subsisting right of appeal on the commencement date, a court has no power to
make a periodical payment order or apply the discount rate.
the avoidance of doubt, the power of a court under this Law to apply the discount
rate or to make a periodical payment order does not itself give rise to a right
of appeal in respect of an action for damages started before the commencement
This Law may be cited as the Damages (Jersey) Law 201- and comes
into force 7 days after the day it is registered.