Inflation-linked increase in personal injury awards to be vetoed

Inflation-linked increase in personal injury awards to be vetoed

An inflation-linked increase in personal injury awards is set to be effectively vetoed by the government.

The Judicial Council proposed a 16.7 per cent increase in awards to the justice minister, Jim O’Callaghan, in February this year.

The first proposed update to the personal injuries guidelines since their introduction in 2021 would have seen the award of general damages for the most devastating and catastrophic of injuries rise from €550,00 to €642,000.

The increase was based on the cumulative change in the harmonised index of consumer prices (HICP) since the first edition of the guidelines was adopted.

The Judicial Council was originally intended to have the power to update the personal injury guidelines by itself.

However, the guidelines now require the approval of the Oireachtas before coming into effect as a result of the Supreme Court’s ruling in Delaney v. The Personal Injuries Board & Ors [2024] IESC 10.

The process for the adoption of revised guidelines is set out in the Courts, Civil Law, Criminal Law and Superannuation (Miscellaneous Provisions) Act 2024.

Taoiseach Micheál Martin yesterday told TDs that the government would not bring a resolution seeking the approval of the Oireachtas for the revised guidelines.

However, he said there was a “need for a review” of the Judicial Council Act 2019 which would take place in the near future.

He said the government’s decision not to support the increase in awards would have implications for the Injuries Resolution Board “because essentially now we have a vacuum here in terms of personal injury awards”.

“There is a legislative framework there which had to be amended because of a Supreme Court decision,” he said.

“This has led to a situation where the Dáil has to approve whatever the Judicial Council recommendations are if they are to take effect.

“If the Dáil does not do the approval, they do not take effect but that could lead to consequences within the courts and within cases.

“It could ultimately have the impact of undermining the Personal Injuries Assessment Board [sic]. We need to reflect on this.”

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