434 / 736
them Ireland .
.
. were anxious that the subject
of enablement should have a place in the Judica
ture Act we were considering." The committee
decided that it would accede to this clause, if the
substance of the terms of " a Quekett enablement
could be agreed with the Government of Northern
Ireland." Views were exchanged, " and as a con
sequence we have reached agreement." The com
mittee's detailed proposals on this point, men
tioned above, are therefore agreed by the Northern
Ireland Government.
The members of the committee were : Lord
MacDermott,; Mr. Justice Lowry; Mr. A. E.
Anderson (Taxing Master of the Supreme Court);
Dr. A. G. Donaldson (Director of Law Reform
for Northern Ireland); Mr. J. R. Lindsay (Chief
Probate Registrar of the Supreme Court); Mr. J.
A. L. McLean
(Permanent Secretary of
the
Supreme Court); Mr. J. A. Ringland (solicitor);
and Mr. C. B. Shaw. Q.C. The secretary of the
committee was Mr. C. W. Shannon.
The report (Command Paper 4292, Stationery
Office, £1) sets out draft clauses for a new Judi
cature (Ireland) Act. The Act of 1877, as amended
principally by the Government of Ireland Act.
1920) setting out the existing law on the Northern
Ireand Supreme Court.
COURT RULING ON MOTOR PREMIUM
INTEREST
A ruling by the Court of Appeal in Lon
don
recently on
the amount of
interest that
courts should add to accident victims' damages
is expected by insurance companies to cause a
further rise in motor premiums, which are already
undergoing a general increase of 10 per cent
this year.
The judges in Jefford v. Gee (4 March 1970)
gave
their
ruling
in
an
attempt
to
end
confusion
over
the
1969 Administration of
Justice Act, which made it obligatory for interest
to be added but gave no guidance on the date or
other matters.
" Up and down the country people wanted
to know the answer — trade unions,
insurers,
accountants,
solicitors
and barristers.
Scores
of cases have already come before the judges.
Each has given a different answer. Such
is
the confusion that we feel it our duty to set out
the auidelines."
The
judges ruled that certain items of the
damages would attract an average annual interest
of 6 per cent, and in some instances the interest
would be payable for the period between the date
of the accident and the court hearing.
In exceptional cases, such as of gross delay, the
court might reduce or increase the interest, or
vary the periods for which it was allowed, Lord
Denning said. The decision should stimulate a
plaintiff's advisers to issue and serve the writ with
out delay. " Delay only too often amounts to a
denial of justice ", he added.
The ruling did not surprise the insurance world,
since it was known that a guideline had already
gone out to judges suggesting 6 per cent.
In the past it has never been known exactly how
much interest judges have allowed in many cases
the amount has been hidden in the award, especi
ally where several years elapsed before the claim
and the court settlement.
" We shall be reviewing premium rates in the
middle of this year ". one of the principal London
companies told me recently. " By then we shall
have seen the effects of recent wage awards and
the higher steel prices for all our suppliers, and
this must inevitably affect our rates."
Lord Denning, sitting with Lord Justice Davies
and Lord Justice Salmon, said interest should be
given on damages for items of actual loss, such as
loss of wages and medical and incidental expenses,
from the date of the accident to the date of trial.
No
interest should be allowed on damages
awarded for loss of future earnings. Damages
awarded for loss of amenities should bear interest
from the date of service of the writ to the date
of the trial.
Lord Denning explained that the rate of interest
would be
that allowed by the court on
the
short-term investment account, averaged over the
period for which interest was awarded.
The figure had risen from 5 per cent in 1965 to
7 per cent today, so that in most cases this year
the average rate of interest might be taken as 6
per cent.
Commenting on
the
judgment,
the British
Insurance Association said that it would increase
the cost of claims on insurance policies (motor,
employers' and public
liability)
" and hence,
inevitably would cause insurance premiums to go
148