Welcome to: Whiplash Claim

There's no such thing as an easy compensation claim

Based on its opinion that increasing the small claims limit is a serious threat to justice, the Association of Personal Injury Lawyers has responded to the Constitutional Affairs Committee report.

The APIL was established in 1990 to protect people's rights who were injured through negligence and aims to ensure that injured people obtain full and fair redress for their injuries. Its membership includes solicitors, barristers, and academics. APIL's campaigning activity has led to regular discussions with the insurance industry, consumer groups, employers' representatives, unions, and the Government.

The small claims procedure was introduced in 1973. The general limit was raised to £5,00 in 1999, when it was last reviewed. The limit for personal injury was left at £1,000. The Better Regulation Task Force's 2004 report recommended that research should be carried out regarding the possible impact increasing that limit to £5,000 to bring it into line with the general limit.

The current proposals to raise the financial limit for personal injuries are perceived by the APIL and others as a serious threat to access to justice. Some potential claimants could lose access to lawyers, as they will no longer have the right to recover legal costs. In opposition to the call of many insurers for a raise to the limit, trade unions and most consumer groups oppose an increase.

The APIL contends that personal injury claims involve complex evidence that demand independent legal guidance. Legal costs are not recoverable from the opposing party in the small claims court. This leaves claimants lacking the resources to obtain legal guidance. Defendants usually have legal representation in the small claims court.

To bring the limit in line with inflation would take the threshold to £1,446. The recent Select Committee report suggested £2,500 as the new limit.

A Mori poll showed that 64 per cent of people who suffer an injury through negligence would not pursue it through the small claims court without an independent solicitor. The APIL predicts that if the limit were raised to £2,500, over 175,000 people a year would no longer pursue their claim for personal injury. Up to 70% of such would be likely to go through the small claims court, as the majority of them are not of a very high value.

Proving negligence can be especially problematic for a claimant without legal representation owing to medical problems that prevent an early assessment. The APIL believes that placing the responsibility for gathering medical reports and presenting them in court on the claimant is unjust.

Adrian Cormack of the APIL said, "Personal injury cases have no place in the small claims court. It is much more difficult to value a whiplash injury than a technical claim for defective goods. Personal injury claims involve complex evidence which almost always demand legal guidance, and the cost system of the small claims procedure does not provide for this facility"

The APIL is "deeply disappointed" with the committee's recommendation. A consultation is expected on this issue with the APIL making its response in due course.