First Settlement Approved Using Lord Chancellor’s -0.75% Discount Rate
The High Court has settled what is thought to be the first case following the change to the discount rate, awarding a 10-year-old girl an increase on her capitalised settlement of over £5.5m. Michael Redfern QC was counsel for the Claimant.
In the case of LMS v East Lancashire Hospitals NHS Trust, on 16 March 2017, the High Court approved the agreed quantum settlement on the basis that the Claimant was to recover 50% of the full value of her claim calculated at the new -0.75% Discount Rate.
At a joint settlement meeting in January 2017 it was agreed that the 10 year old Claimant would receive a lump sum of £1,320,575,00 and periodical payments of £50,000pa to age 19 and thereafter for life £73,500pa subject to Court approval.
On 27 February 2017, the Lord Chancellor announced that she would be reducing her discount rate from 2.5% to -0.75% with effect from 20 March 2017. The lump sum increased from £1,320.575 to £2,122,398. Periodical payments remained the same.
The capitalised value of the joint settlement agreement was £3,772,500 (2.5%DR).
The capitalised value of the approved award was £9,296,673 (-0.75%DR).