Personal injury: latest calculation

Rodney Nelson-Jones has this year's tables to help solicitors calculate interest rates

In personal injury cases, the standard rate of interest on general damages for pain and suffering and loss of amenities was fixed at 2% per annum by the House of Lords in Birkett v Hayes [1982] 1 WLR 816; (1982) 2 All ER 70).

This has been confirmed as appropriate by the Court of Appeal in Lawrence v Chief Constable of Staffordshire [2000] The Times, 25 July.

The appropriate rate of interest for special damages is the rate, over the period for which the interest is awarded, which is payable on the court special account.

This rate was reduced to 7% p.a.

on 1 August 1999.

Interest since June 1987 has been paid daily on a 1/365th basis, even in a leap year such as 1992.

In cases of continuing special damages, half the appropriate rate from the date of injury to the date of trial is awarded.

In cases where the special damages have ceased and are thus limited to a finite period, there are conflicting Court of Appeal decisions as to whether the award should be half the appropriate rate from injury to trial (Dexter v Courtaulds [1984] 1 All ER 70) or the full special account rate from a date within the period to which the special damages are limited (Prokop v DHSS [1985] CLY 1037).

The House of Lords has Confirmed that DSS benefit should be disregarded when calculating interest on special damages (Wadey v Surrey County Council [2000] 1 WLR 820 (HL).

The relevant rates since 1965 are conveniently set out in the White Book at note 12, ord 6, r2, as set out in table 3.

Table 1 records the total of these rates from January 1980.

In the left-hand column is shown the month from the first day of which interest is assumed to run.The right-hand column shows the percentage interest accumulated from the first day of each month to 1 October 2000.

Continued use may be made of this table by adding to the figures therein 1/365th of the special account rate from 1 October 2000 onwards.

Precision may easily be attained through table 2, which records the accumulated total of days at the end of each of the next six months.

Rodney Nelson-Jones is a partner at Field Fisher Waterhouse

Table 1: Total rates since 1980

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990January 208.44 195.72 182.07 169.44 157.32 145.32 133.53 121.76 110.90 97.69February 207.38 194.45 180.96 168.38 156.30 144.30 132.49 120.83 109.80 96.48March 206.42 193.30 179.97 167.39 155.38 143.38 131.55 119.95 108.80 95.39April 205.35 192.11 178.86 166.34 154.36 142.36 130.51 119.02 107.69 94.18May 204.33 190.96 177.83 165.35 153.37 141.37 129.54 118.11 106.63 93.01June 203.27 189.77 176.77 164.34 152.35 140.35 128.54 117.31 105.52 91.80July 202.24 188.62 175.74 163.35 151.37 139.37 127.58 116.53 104.45 90.62August 201.18 187.52 174.68 162.34 150.35 138.35 126.58 115.72 103.35 89.41September 200.11 186.41 173.62 161.32 149.33 137.37 125.58 114.78 102.24 88.20October 199.09 185.34 172.59 160.34 148.34 136.43 124.62 113.88 101.18 87.03November 198.03 184.24 171.53 159.32 147.32 135.45 123.62 112.95 100.07 85.82December 197.00 183.17 170.51 158.34 146.34 134.41 122.69 111.94 98.90 84.65

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000January 83.44 71.33 61.05 52.86 44.86 36.86 28.84 20.84 12.84 5.25February 82.23 70.46 60.18 52.18 44.18 36.18 28.16 20.16 12.16 4.66March 81.14 69.64 59.56 51.56 43.56 35.54 27.54 19.54 11.54 4.10April 79.93 68.77 58.88 50.88 42.88 34.86 26.86 18.86 10.86 3.51May 78.94 67.93 58.23 50.23 42.23 34.21 26.21 18.21 10.21 2.93June 77.92 67.06 57.55 49.55 41.55 33.53 25.53 17.53 9.53 2.34July 76.93 66.22 56.89 48.89 40.89 32.87 24.87 16.87 8.87 1.76August 75.92 65.35 56.21 48.21 40.21 32.19 24.19 16.19 8.19 1.17September 74.90 64.47 55.53 47.53 39.53 31.51 23.51 15.51 7.59 0.58October 73.91 63.63 54.87 46.87 38.87 30.85 22.85 14.85 7.02 November 73.04 62.76 54.19 46.19 38.19 30.17 22.17 14.17 6.42 December 72.20 61.92 53.54 45.54 37.54 29.52 21.52 13.52 5.85

Table 3: Rates since 1965

From

1 October 19655%1 September 19665.5%1 March19686%1 March19696.5%1 March19707%1 April 19717.5%1 March19738%1 March19749%1 February197710%1 March197912.5%1 January198015%1 January 198112.5%1 December 198115%1 March198214%1 July198213%1 April198312.5%1 April198412%1 August198611.5%1 January198712.25%1 April198711.75%1 November198711.25%1 December198711%1 May19889.5%1 August198811%1 November198812.25%1 January198913%1 November198914.25%1 April199112%1 October199110.25%1 February19938%1 August19997 %

Table 2: total number of days at the end of each of the next six months

31 October 200031

30 November 200061

31 December 200092

31 January 2001123

28 February 2001151

31 March 2001182

Suppose that interest runs from 1 December 1996 to 13 December 2000.

The total to the end of September 1999 is 29.52%.

If the rate remains at 7% p.a., the grand total from 1 December 1996 to 13 December 2000 will be 29.52 + 1.40 = 30.92%.These tables should assist all those concerned with interest since 1981 in making calculations fluently.

The listed rates provide the base for a calculation from 1965.

Although the tables' primary application is to interest on special damages in personal injury cases, they are equally applicable to any other case in which the special account is used in calculating interest.