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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Rupasinghe v West Hertfordshire Hospitals NHS Trust [2016] EWHC 2848 (QB) (09 November 2016) URL: http://www.bailii.org/ew/cases/EWHC/QB/2016/2848.html Cite as: [2016] EWHC 2848 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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DR KUMUDU KUMARI RUPASINGHE (SUING ON HER OWN BEHALF AND AS ADMINISTRATRIX OF THE ESTATE OF ROHAN RUPASINGHE DECEASED) |
Claimant |
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- and – |
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WEST HERTFORDSHIRE HOSPITALS NHS TRUST |
Defendant |
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Clodagh Bradley QC (instructed by Capsticks) for the Defendant
Hearing date: 8th November 2016
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Crown Copyright ©
MR JUSTICE JAY:
Introduction
(i) Item 2.6 is a claim for "Past Earnings Dependency (the Claimant's loss of earnings)". It is pleaded that "as a result of his death, the Claimant has had to make substantial changes to her career [misspelt in the Schedule] and has suffered a loss of earnings and pension as a result". Instead of being able to pursue a relatively remunerative career as a doctor in the UK, leading to a consultant position in the fullness of time, the Claimant has had to accept much less valuable employment in Sri Lanka. Under item 2.6 of the Schedule, the claim is for the difference. The Schedule pleads a loss of £118,503.19.(ii) Item 2.7 is a claim for "Future Earnings Dependency (the Claimant's loss of earnings)". Analytically, this case proceeds on the same basis as item 2.6, and takes the position from the date of trial to the date of the Claimant's notional retirement as a doctor in the UK. The Schedule pleads a loss of £1,257,678.73.
(iii) Item 2.8 is a claim for "Future Pension Dependency (the Claimant's loss of pension)". The claim under this rubric is in respect of pension loss from the date of notional retirement over the balance of the Claimant's life expectancy. The Schedule pleads a loss of £437,260.59.
"It is agreed by the parties that all heads of claim claimed in the Schedule other than those set out [there is a typographical error in the original] below are to be settled in the sum of £335,000 (subject to Court approval insofar as the claims relate to the minors Hesara and Senugi Rupasinghe).
The Schedule items not included in the agreement are items 2.6, 2.7, and 2.8."
The Evidence
The Governing Law
The Fatal Accidents Act 1976
"In the action, such damages…may be awarded as are proportional to the injury resulting from the death to the dependants respectively."
This wording was to be found in the original Fatal Accidents Act enacted in 1846, and is somewhat terse. I read the phrase "as are proportional to the injury" as intended to govern distribution as between the dependants rather than as a synonym for "proportionate". That said, there may well be other reasons why disproportionate damages would not be awarded. As McGregor on Damages, 19th Edition, paragraph 39-017 observes:
"This is both wide and vague, but the interpretation of the Courts, before the introduction of a separate entitlement of some to a limited recovery for bereavement, restricted recovery to damages for the loss of the pecuniary benefit arising from the relationship which would be derived from the continuance of the life. In short, the measure recoverable by a dependant is what is often called the value of the dependency…"
In my view, as ever the late Dr McGregor has struck at the heart of the issue. Damages are awarded "for the loss of the pecuniary benefit arising from the relationship which would be derived from the continuance of the life". How this principle should be applied exactly in the present case remains to be explored.
Analysis of the Authorities
"It has, however, long been established, despite these wide words [of what is now section 3(1) of the 1976 Act], first: that the pecuniary loss to the persons for whose benefit the action is brought is the only damage recoverable, and, secondly, that the pecuniary loss recoverable is limited to the loss of a benefit in money or money's worth, which if the deceased had survived, would have accrued to a person within the defined relationship to the deceased, and would have arisen from that relationship and not otherwise." [at page 349]
To my mind, this second principle is, for present purposes, at least as valuable as the first. The circumscribing principle is that damages are awarded as recompense for the loss of the benefits which would have enured to the dependants if the deceased had survived, flowing from the relationship between the deceased and these dependants. This aspect of the matter is reinforced by consideration of what Diplock LJ said two pages later in the Law Report, namely that the wife's salary, however paid, could form no part of "the dependency", as it would continue after her husband's death – "it would not be a benefit arising out of the relationship of husband and wife which she would lose on his death". However, I do not agree with Miss Bradley that this short passage provides a conclusive answer to the present claim as formulated on the Claimant's behalf. What it does serve to demonstrate is that a claim for loss of earnings simpliciter cannot be accommodated within the relevant statutory provision.
"…the dependency is fixed at the moment of death; it is what the dependants would probably have received as benefit from the deceased, had the deceased not died. What decisions people make afterwards is irrelevant."
This dictum was uttered in the context of a claim for financial rather than services dependency. Whether it applies to the latter, and in what precise respect, remains to be considered.
"It represents the cost and the circumstances of providing the services of the plaintiff as a full-time housekeeper in substitution for the deceased" [at 536F].
On my reading of this authority, the judge took the plaintiff's earnings as a proxy for the value of the deceased's lost services.
"…a claim of this kind is simply one example of recovery of pecuniary loss suffered by a dependant in the replacement of services previously rendered gratuitously by the deceased … If [the Claimant] can show that he did act reasonably in giving up his naval career in order himself to replace services previously rendered gratuitously by the deceased wife then, in principle, he should be entitled to recover damages in respect of any pecuniary loss suffered by him by reason of his so acting."
Robert Goff J did not suggest that the claim should be subject to any further limitation as to reasonableness, or to any ceiling or cap. He calculated the claim with reference to the plaintiff's loss of earnings and terminal benefits.
"In principle if and to the extent that [the claimant's] net loss of profits in his dental business was caused by him reducing the time spent at work and/or working in a less profitable context so as to be able to provide services to the children which [the deceased] would have provided had she survived, they would be recoverable as an alternative way of assessing the value of the claim for past loss of [the deceased's] services to the children. However, given that the claimant asserts an independent claim for the loss of those past services, which I have allowed by calculating the notional value of the cost of replacing those services, that part of the loss of earnings claim attributable to looking after the children cannot in my judgment be recoverable as an additional head of damages." [paragraph 238]
I respectfully disagree with both these sentences. As for the first, it is too broad, inasmuch as the principle asserted appears to be subject to no criterion of reasonableness. As for the second, I have difficulty in understanding how the loss of earnings claim, which if sustainable at all should be regarded as a surrogate for the value of the lost services, could be apportioned on the basis suggested. In any event, I note that the claim failed on its facts.
The Rival Contentions
Analysis and Conclusions
Conclusion