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England and Wales High Court (Queen's Bench Division) Decisions
You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> KLM v EUI Ltd  EWHC 1497 (QB) (24 June 2016)
Cite as:  EWHC 1497 (QB)
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL
B e f o r e :
(Sitting as a Judge of the High Court)
(A protected party
by her father and litigation friend HJM)
|- and -
Mr Benjamin Browne QC (instructed by Horwich Farelly) for the Defendant
Hearing date: 15 June 2016
Crown Copyright ©
H.H. Judge Reddihough :
"(1) CPR r25.7(4) places a cap on the maximum amount which it is open to the Court to order by way of interim payment, being no more than a reasonable proportion of the likely amount of the final judgment.
(2) In determining the likely amount of the final judgment, the Court should make its assessment on a conservative basis; having done so, the reasonable proportion awarded may be a high proportion of that figure.
(3) This reflects the objective of an award of an interim payment, which is to ensure that the claimant is not kept out of money to which he is entitled, whilst avoiding any risk of an overpayment.
(4) The likely amount of a final judgment is that which will be awarded as a capital sum, not the capitalised value of a periodical payment order (PPO).
(5) The Court must be careful not to fetter the discretion of the trial judge to deal with future losses by way of periodical payments rather than a capital award.
(6) The Court must also be careful not to establish a status quo in the claimant's way of life which might have the effect of inhibiting the trial judge's freedom of decision, a danger described in Campbell -v- Mylchreest as creating "an unlevel playing field".
(7) Accordingly, the first stage is to make the assessment in relation to heads of loss which the trial judge is bound to award as a capital sum, leaving out of account heads of future loss which the trial judge might wish to deal with by a PPO. These are, strictly speaking: (a) general damages for pain suffering and loss of amenity; (b) past losses (taken at the predicted date of the trial rather than the interim payment hearing); (c) interest on these sums.
(8) For this part of the process the Court need not normally have regard to what the claimant intends to do with the money. If he is of full age and capacity, he may spend it as he will; if not, expenditure will be controlled by the Court of Protection. Nevertheless, if the use to which the interim payment is to be put would or might have the effect of inhibiting the trial judge's freedom of decision by creating an unlevel playing field, that remains a relevant consideration. It is not, however, a conclusive consideration: it is a factor in the discretion, and may be outweighed by the consideration that the claimant is free to spend his damages awarded at trial as he wishes, and the amount here being considered is simply payment at the earliest reasonable opportunity of damages to which the claimant is entitled: Campbell -v- Mylchreest  PIQR Q17.
(9) The Court may in addition include elements of future loss in its assessment of the likely amount of the final judgment if but only if (a) it has a high degree of confidence that the trial judge will award them by way of a capital sum and (b) there is a real need for the interim payment requested in advance of trial.
(10) Accommodation costs are "usually" to be included within the assessment at Stage 1 because it is "very common indeed" for accommodation costs to be awarded as a lump sum, even including those elements which relate to future running costs."
The guidance set out in points (1) to (8) are sometimes referred to as "Eeles Stage 1" and in the remaining points as "Eeles Stage 2".
General Damages for pain, suffering and loss of amenity
£700,000 x 2.5% x 15.75 = £275,625
Taking account of the respective figures supplied by the parties, I would then add on the following costs:
Ancillary costs of purchase: £30,000 Additional running costs: £8,500 x 15.75: £133,875 Adaptations: £200,000 Total: £639,500
£45,000 Total: £584,500