RJW voices opposition to PI discount

Russell Jones & Walker has written to the Lord Chancellor claiming that the new discount rate in personal injury (PI) cases which he set last week is inaccurate.

The managing partner of the firm's London PI department Paul Kitson has written to the Lord Chancellor alleging that his calculations were based on incorrect data.
Kitson has also written to the Government actuary Chris Daykin and the Treasury as he believes Lord Irvine failed in his statutory duty under the Damages Act 1996 to consult firms when fixing the discount rate.
Lord Irvine set the discount rate at 2.5 per cent, while lawyers and accountants claim the rate is between 1.5 per cent and 2 per cent after tax.
The alleged anomaly means that a five-year-old cerebral palsy victim who expects up to £3m in damages may lose out on £400,000. A police officer or fire fighter owed £200,000 in compensation could lose out on roughly £40,000.