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This is all very depressing sloppy thinking from the "cleverest man in Britain". Others have dealt ( see below) on the absurdity and unfairness of not fully compensating someone for their loss. This would of course be even more the case where the defendant had been in pursuit of his own business and profit- why should he it get the benefit.
The other point about deterrence. He has a point about reflection but take the issue of the NHS- billions are paid out in compensation due to its negligence. I for one think the number of incidents would be even greater if funds were not paid out.
I am not a PI lawyer and have no axe to grind.