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Courts Bill [HL]


Courts Bill [HL]
Part 8 — Miscellaneous

    49

 

                  (b)                 it is protected by a scheme under section 213 of the Financial

Services and Markets Act 2000 (compensation) (whether or not

as modified by section 4 of this Act), or

                  (c)                                     the source of payment is a government or health service body.

           (5)           An order for periodical payments may include provision—

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                  (a)                                     requiring the party responsible for the payments to use a

method (selected or to be selected by him) under which the

continuity of payment is reasonably secure by virtue of

subsection (4);

                  (b)                                     about how the payments are to be made, if not by a method

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under which the continuity of payment is reasonably secure by

virtue of subsection (4);

                  (c)                                     requiring the party responsible for the payments to take

specified action to secure continuity of payment, where

continuity is not reasonably secure by virtue of subsection (4);

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                  (d)                 enabling a party to apply for a variation of provision included

under paragraph (a), (b) or (c).

           (6)           Where a person has a right to receive payments under an order for

periodical payments, or where an arrangement is entered into in

satisfaction of an order which gives a person a right to receive

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periodical payments, that person’s right under the order or

arrangement may not be assigned or charged without the approval of

the court which made the order; and—

                  (a)                 a court shall not approve an assignment or charge unless

satisfied that special circumstances make it necessary, and

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                  (b)                 a purported assignment or charge, or agreement to assign or

charge, is void unless approved by the court.

           (7)           Where an order is made for periodical payments, an alteration of the

method by which the payments are made shall be treated as a breach of

the order (whether or not the method was specified under subsection

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(5)(b)) unless—

                  (a)                 the court which made the order declares its satisfaction that the

continuity of payment under the new method is reasonably

secure,

                  (b)                 the new method is protected by a guarantee given under section

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6 of or the Schedule to this Act,

                  (c)                 the new method is protected by a scheme under section 213 of

the Financial Services and Markets Act 2000 (compensation)

(whether or not as modified by section 4 of this Act), or

                  (d)                 the source of payment under the new method is a government

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or health service body.

       2A            Periodical payments: supplementary

           (1)           Civil Procedure Rules may require a court to take specified matters into

account in considering—

                  (a)                 whether to order periodical payments;

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                  (b)                 the security of the continuity of payment;

                  (c)                 whether to approve an assignment or charge.

 

 

Courts Bill [HL]
Part 8 — Miscellaneous

    50

 

           (2)                         For the purposes of section 2(4)(c) and (7)(d) “government or health

service body” means a body designated as a government body or a

health service body by order made by the Lord Chancellor.

           (3)                         An order under subsection (2)—

                  (a)                 shall be made by statutory instrument, and

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                  (b)                 shall be subject to annulment in pursuance of a resolution of

either House of Parliament.

           (4)           Section 2(6) is without prejudice to—

                  (a)                 the power of a court to make an income payments order under

section 310 of the Insolvency Act 1986 (or equivalent legislation

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for Northern Ireland),

                  (b)                 a person’s power to enter into an income payments agreement

under section 310A of that Act (or equivalent legislation for

Northern Ireland), or

                  (c)                                     a person’s power to assign a right to the scheme manager

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established under section 212 of the Financial Services and

Markets Act 2000.

           (5)           In section 2 “damages” includes an interim payment which a court

orders a defendant to make to a claimant.

           (6)           In the application of this section to Northern Ireland—

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                  (a)                 a reference to Civil Procedure Rules shall be taken as a reference

to rules of court, and

                  (b)                 a reference to a claimant shall be taken as a reference to a

plaintiff.

           (7)           Section 2 is without prejudice to any power exercisable apart from that

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section.

       2B            Variation of orders and settlements

           (1)           The Lord Chancellor may by order enable a court which has made an

order for periodical payments to vary the order in specified

circumstances (otherwise than in accordance with section 2(5)(d)).

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           (2)           The Lord Chancellor may by order enable a court in specified

circumstances to vary the terms on which a claim or action for damages

for personal injury is settled by agreement between the parties if the

agreement—

                  (a)                 provides for periodical payments, and

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                  (b)                 expressly permits a party to apply to a court for variation in

those circumstances.

           (3)           An order under this section may make provision—

                  (a)                 which operates wholly or partly by reference to a condition or

other term of the court’s order or of the agreement;

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                  (b)                 about the nature of an order which may be made by a court on

a variation;

                  (c)                 about the matters to be taken into account on considering

variation;

                  (d)                 of a kind that could be made by Civil Procedure Rules or, in

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relation to Northern Ireland, rules of court (and which may be

 

 

Courts Bill [HL]
Part 8 — Miscellaneous

    51

 

expressed to be with or without prejudice to the power to make

those rules).

           (4)           An order under this section may apply (with or without modification)

or amend an enactment about provisional or further damages.

           (5)           An order under this section shall be subject to any order under section

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1 of the Courts and Legal Services Act 1990 (allocation between High

Court and county courts).

           (6)           An order under this section—

                  (a)                 shall be made by statutory instrument,

                  (b)                 may not be made unless the Lord Chancellor has consulted such

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persons as he thinks appropriate,

                  (c)                 may not be made unless a draft has been laid before and

approved by resolution of each House of Parliament, and

                  (d)                 may include transitional, consequential or incidental provision.

           (7)           In subsection (4)—

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                                  “provisional damages” means damages awarded by virtue of

subsection (2)(a) of section 32A of the Supreme Court Act 1981

or section 51 of the County Courts Act 1984 (or, in relation to

Northern Ireland, paragraph 10(2)(a) of Schedule 6 to the

Administration of Justice Act 1982), and

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                                  “further damages” means damages awarded by virtue of

subsection (2)(b) of either of those sections (or, in relation to

Northern Ireland, paragraph 10(2)(b) of Schedule 6 to the

Administration of Justice Act 1982).”

     (2)    In section 329AA of the Income and Corporation Taxes Act 1988 (c. 1)

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(periodical payments)—

           (a)           for subsection (1) substitute—

                  “(1)                    Periodical payments shall not for the purposes of income tax be

regarded as the income of any of the persons mentioned in

subsection (2) below (and shall be paid without deduction

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under section 348(1)(b) or 349(1)).

                  (1A)                    In subsection (1) “periodical payments” means periodical

payments made pursuant to—

                        (a)                        an order of a court in so far as it is made in reliance on

section 2 of the Damages Act 1996 (including an order as

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varied), or

                        (b)                        an agreement in so far as it settles a claim or action for

damages in respect of personal injury (including an

agreement as varied).”,

           (b)           in subsection (3) for “if the agreement or order mentioned in that

40

subsection or a subsequent agreement so provides,” substitute “if the

order, agreement or undertaking mentioned in subsection (1A), or a

varying order, agreement or undertaking, so provides or permits,”,

           (c)                         in subsection (6) after “claim or action for” insert “damages in respect

of”,

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           (d)           for subsection (7) substitute—

                  “(7)                    For the purposes of subsection (1A) above—

 

 

Courts Bill [HL]
Part 8 — Miscellaneous

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                        (a)                        the reference to an order of a court made in reliance on

section 2 of the Damages Act 1996 includes an order of a

court outside the United Kingdom which is similar to an

order made in reliance on that section,

                        (b)                        the reference to an agreement settling a claim or action

5

includes a reference to an agreement to make payments

on account of damages that may be awarded in a claim

or action, and

                        (c)                                                   the reference to an agreement in so far as it settles a

claim or action for damages in respect of personal injury

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also includes a reference to an undertaking given by the

Motor Insurers’ Bureau (being the company of that

name incorporated on 14th June 1946 under the

Companies Act 1929), or an Article 75 insurer under the

Bureau’s Articles of Association, in relation to a claim or

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action in respect of personal injury.”, and

           (e)           omit subsection (8).

     (3)    In section 329AB(1) of that Act (statutory compensation) for “subsection (1)”

substitute “subsection (1A)”.

     (4)    In this section—

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           (a)           subsection (1) shall extend only to England and Wales and Northern

Ireland, and

           (b)           the remainder shall extend to the whole of the United Kingdom.

 99    Periodical payments: security

     (1)    For sections 4 and 5 of the Damages Act 1996 (c. 48) (enhanced protection for

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structured settlement annuitant) substitute—

       “4            Enhanced protection for periodical payments

           (1)           Subsection (2) applies where—

                  (a)                 a person has a right to receive periodical payments, and

                  (b)                 his right is protected by a scheme under section 213 of the

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Financial Services and Markets Act 2000 (compensation), but

only as to part of the payments.

           (2)           The protection provided by the scheme shall extend by virtue of this

section to the whole of the payments.

           (3)           Subsection (4) applies where—

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                  (a)                 one person (“the claimant”) has a right to receive periodical

payments from another person (“the defendant”),

                  (b)                 a third person (“the insurer”) is required by or in pursuance of

an arrangement entered into with the defendant (whether or

not together with other persons and whether before or after the

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creation of the claimant’s right) to make payments in

satisfaction of the claimant’s right or for the purpose of enabling

it to be satisfied, and

                  (c)                 the claimant’s right to receive the payments would be wholly or

partly protected by a scheme under section 213 of the Financial

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Services and Markets Act 2000 if it arose from an arrangement

 

 

Courts Bill [HL]
Part 8 — Miscellaneous

    53

 

of the same kind as that mentioned in paragraph (b) but made

between the claimant and the insurer.

           (4)           For the purposes of the scheme under section 213 of that Act—

                  (a)                 the claimant shall be treated as having a right to receive the

payments from the insurer under an arrangement of the same

5

kind as that mentioned in subsection (3)(b),

                  (b)                 the protection under the scheme in respect of those payments

shall extend by virtue of this section to the whole of the

payments, and

                  (c)                 no person other than the claimant shall be entitled to protection

10

under the scheme in respect of the payments.

           (5)           In this section “periodical payments” means periodical payments made

pursuant to—

                  (a)                 an order of a court in so far as it is made in reliance on section 2

above (including an order as varied), or

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                  (b)                 an agreement in so far as it settles a claim or action for damages

in respect of personal injury (including an agreement as varied).

           (6)           In subsection (5)(b) the reference to an agreement in so far as it settles a

claim or action for damages in respect of personal injury includes a

reference to an undertaking given by the Motor Insurers’ Bureau (being

20

the company of that name incorporated on 14th June 1946 under the

Companies Act 1929), or an Article 75 insurer under the Bureau’s

Articles of Association, in relation to a claim or action in respect of

personal injury.”

     (2)    In section 6(1) of the Damages Act 1996 (c. 48) (guarantee for public sector

25

settlement) for the words “on terms corresponding to those of a structured

settlement as defined in section 5 above except that the person to whom the

payments are to be made is not to receive them as mentioned in subsection

(1)(b) of that section” substitute “on terms whereby the damages are to consist

wholly or partly of periodical payments”.

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     (3)    In paragraph 1(a) of the Schedule to that Act (guarantee by Northern Ireland

Department for public sector settlement) for the words “on terms

corresponding to those of a structured settlement as defined in section 5 of this

Act except that the person to whom the payments are to be made is not to

receive them as mentioned in subsection (1)(b) of that section” substitute “on

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terms whereby the damages are to consist wholly or partly of periodical

payments”.

     (4)    This section extends to the whole of the United Kingdom.

Provisions relating to Northern Ireland

 100   Power to alter judicial titles: Northern Ireland

40

     (1)    The Lord Chancellor may by order—

           (a)           alter the name of any of the offices of the Supreme Court of Judicature

of Northern Ireland or of the county courts in Northern Ireland which

are listed in subsection (2);

           (b)           provide for or alter the way in which the holders of any of those offices

45

are to be styled.

 

 

Courts Bill [HL]
Part 8 — Miscellaneous

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     (2)    The offices are—

                    County court judge

                    Deputy judge of the county court

                    District Judge

                    Judge of the Court of Appeal

5

                    Lord Chief Justice

                    Master (Bankruptcy)

                    Master (Care and Protection)

                    Master (Chancery)

                    Master (Enforcement of Judgments)

10

                    Master (High Court)

                    Master (Probate and Matrimonial)

                    Master (Queen’s Bench and Appeals)

                    Master (Taxing Office)

                    Presiding judge for the county courts

15

                    Puisne judge of the High Court.

     (3)    The Lord Chancellor may also by order provide for or alter the way in which

deputies or temporary additional officers appointed under section 74(1) of the

1978 Act are to be styled.

     (4)    Before making an order under this section the Lord Chancellor must consult

20

the Lord Chief Justice.

     (5)    An order under this section may make such provision as the Lord Chancellor

considers necessary in consequence of any provision made under subsection

(1) or (3).

     (6)    The provision that may be made under subsection (5) includes provision

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amending, repealing or revoking any enactment.

     (7)    The power to make an order under this section is exercisable by statutory rule

for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I.

1979/1573 (N.I. 12)).

     (8)    An order under this section is subject to annulment in pursuance of a

30

resolution of either House of Parliament in the same manner as a statutory

instrument; and section 5 of the Statutory Instruments Act 1946 (c. 36) applies

accordingly.

     (9)    “The 1978 Act” means the Judicature (Northern Ireland) Act 1978 (c. 23).

 101   Official Solicitor of Northern Ireland

35

     (1)    In Schedule 3 to the 1978 Act (statutory offices) the entry relating to the Official

Solicitor ceases to have effect.

     (2)    Amend section 75 of the 1978 Act (Official Solicitor) as follows.

     (3)    For subsection (3) substitute—

           “(3)              A person shall be qualified for appointment as Official Solicitor if he is

40

a solicitor of the Supreme Court of at least 7 years’ standing.”

 

 

Courts Bill [HL]
Part 8 — Miscellaneous

    55

 

     (4)    After subsection (5) insert—

           “(6)              The Official Solicitor shall hold and vacate office in accordance with the

terms of his appointment (which may include provision about

retirement, dismissal or resignation).

           (7)              The Lord Chancellor may pay to the Official Solicitor such

5

remuneration and allowances as the Lord Chancellor may determine

with the consent of the Treasury.

           (8)              Service as the Official Solicitor is employment in the civil service of the

State for the purposes of section 1 of the Superannuation Act 1972

(Principal Civil Service Pension Scheme).

10

           (9)              While the office of Official Solicitor is vacant or the Official Solicitor is

unable or unwilling to act, the Lord Chancellor may, after consultation

with the Lord Chief Justice, appoint a person as temporary Official

Solicitor; and the temporary Official Solicitor—

                  (a)                 may be appointed only if qualified for appointment as Official

15

Solicitor,

                  (b)                 shall have all the powers and duties of the Official Solicitor, and

                  (c)                 may be paid remuneration and allowances by the Lord

Chancellor with the consent of the Treasury.”

     (5)    In section 68 of the 1978 Act (Supreme Court: departments)—

20

           (a)           in subsection (2)(b) for “statutory officer” substitute “officer”, and

           (b)           for subsection (4) substitute—

                  “(4)                    The officer supervising a department shall discharge his

functions in accordance with directions given by the Lord

Chancellor.”

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     (6)    In section 73 of the 1978 Act (restrictions on practice) subsection (2) (and the

words “Subject to subsection (2),”) cease to have effect.

     (7)    In section 76 of the 1978 Act (property) paragraph (c) (which referred to the

Official Solicitor and which ceased to have effect by virtue of the Supreme

Court (Departments and Officers) (Northern Ireland) Order 1982 (S.R. 1982/

30

300)) shall again have effect.

     (8)    Nothing in this section has any effect in relation to the person who on the

commencement of this section holds the office in Northern Ireland of Official

Solicitor to the Supreme Court.

 102   Alteration of place fixed for Crown Court trial: Northern Ireland

35

An application under section 48(3) of the 1978 Act (application for variation of

place fixed for Crown Court trial) is no longer required to be heard in open

court; and accordingly section 48(4) of the 1978 Act ceases to have effect.

 103   Extension of time for criminal appeals to House of Lords: Northern Ireland

     (1)    Amend paragraph 1 of Schedule 1 to the 1978 Act (applications for leave to

40

appeal to House of Lords in certain criminal matters) as follows.

     (2)    In sub-paragraph (1)—

           (a)           for “fourteen” (in both places) substitute “28”, and

 

 

 
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