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ARTICLE · 21 AUGUST 2007

Compensation Control

Penningtons Solicitors LLP
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"We’re getting a bit like America now, aren’t we?" This fairly typical dinner party question arises from a perception that the country is in the grip of a ‘compensation culture’ where damages can be claimed regardless of blame.

United KingdomLitigation, Mediation & Arbitration
David Raine
David Raine

"We’re getting a bit like America now, aren’t we?" This fairly typical dinner party question arises from a perception that the country is in the grip of a ‘compensation culture’ where damages can be claimed regardless of blame. But this is not a true reflection of the legal position.

Most of us engage in activities where we have a duty to take reasonable care to avoid injuring others. ‘Reasonable’ care – not excessive care. There is no need to avoid the activity altogether if reasonable care can be taken.

This perception has arisen since the Government’s Access to Justice reforms in 2000. The resultant rise in ‘no win, no fee’ cases has made personal injury big business. Unregulated claims management companies with big budgets advertised widely. There was a rise in frivolous claims. The famous collapses of Claims Direct and The Accident Group gave the sector a bad reputation and encouraged the view that we were overrun by ambulance chasers.

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