The Discount Rate & Periodic Payments in Tort Law
24 Pages Posted: 25 Sep 2017 Last revised: 25 Oct 2017
Date Written: September 22, 2017
The ‘lump sum, once and for all’ method of payment of damages in tort law puts judges in the invidious position of having to put a financial value not only on the plaintiff’s current injuries but effectively requires them to peer into a crystal ball to ascertain the level of award that the plaintiff will require to sustain them for the rest of their lives while at the same time ensuing the award is not so excessive that it results in them receiving more than their due. In light of this background, it is the purpose of this article to critically review recent developments in the courts’ approach in Ireland and the UK in making such calculations and the impact of proposed legislation on the structure of the payment of damages awards in the form of periodic payments.
Keywords: damages, tort, discount rate, periodic payments
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