Periodical Payment Orders
In Scotland, when there is an award of damages in respect of a personal injury, it is generally paid as a lump sum. An alternative approach is the payment of those damages which represent future losses such as earnings or care, through periodical payments.This spreads the payments over a period (often the pursuer’s life span) – usually via an annual payment.
Currently, in Scotland, the courts may make a periodical payments order only where the parties consent.This position differs from that in England and Wales where the courts have the power to impose such an order.
The Scottish Government consulted in 2012-13 on a proposal to allow Scottish courts to impose Periodical Payment Orders without the consent of the parties. There was support for the proposal.
Given the support, the Scottish Government has drafted legislative provisions and is now seeking views on the draft provisions to ensure they meet the policy aim. The provisions, a commentary and questions are set out in the linked pdf.
If you wish to comment on the draft proposals, we would be grateful if you could do so by 8 September to Damages@gov.scot
Please also let us know whether or not you would be happy for us to publish your response.
Damages (Investment Returns and Periodical Payments)(Scotland) Bill
Business and Regulatory Impact Assessment
Equality Impact Assessment