The Politics and Economics of Tort Law: Judicially Imposed Periodical Payments of Damages

Lump sum damages for personal injury are again under attack. Almost twenty years ago the concept of a structured settlement was imported into this country from the USA in order to provide continuing lifetime payments for seriously injured claimants.' However, the idea was slow to develop. Proposals for a structure were easily defeated if either of the parties objected. Now, after lengthy consultation,2 that veto has been removed by amendment of the Damages Act 1996.3 Taking into account the needs of the claimant, ajudge can make a periodical payments order (PPO) even if it is against the wishes of both parties. The increasing judicial direction of the course of litigation has thus been accentuated. The tradition in tort damages is for there to be a clean break, with the defendant giving the claimant a once-and-for-all payment to end matters. In contrast, a PPO will produce an uncertain continuing relationship that may vary over time. This is because the periodical payments must be indexed against inflation no