LNS v East Lancashire Hospitals NHS Trust (unreported)
The High Court has settled what is claimed to be the first case following the change to the discount rate which came into force on 20 March 2017 resulting in an increase of £5.5m.
This was a cerebral palsy case where it has been agreed the claimant would recover 50% of the full value of the claim.
A Joint Settlement Meeting took place in January 2017 where it was agreed the claimant would receive:
- a lump sum of £1,320,575
- periodical payments of £50,000 per annum to the age of 17; and
- periodical payments of £73,500 per annum for life thereafter
The capitalised value of the joint settlement agreement was £3,772,500 which was calculated under the old discount rate of 2.5%.
Under the new discount rate the capitalised value of the approved award was £9,296,673, an increase of £5.5m. The lump sum increased to £2,122,398.