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Chamber and committees

Justice 1 Committee, 13 Dec 2006

Meeting date: Wednesday, December 13, 2006


Contents


Rights of Relatives to Damages (Mesothelioma) (Scotland) Bill: Stage 1

The Convener:

I welcome Johann Lamont, the Deputy Minister for Justice, and her team. Paul Cackette is the head of the civil justice division; Lorna Brownlee is the bill team leader; Bob Cockburn is the deputy principal clerk of session of the Scottish Courts Service; and Alison Fraser is from the Scottish Executive. I welcome you all to this final evidence session before we produce our stage 1 report on the bill. We have some questions, as you might expect; however, I understand that the minister wants to make a statement before we begin.

The Deputy Minister for Justice (Johann Lamont):

Thank you, convener. I am grateful for the opportunity to speak about the bill and to discuss the issues that have been flagged up in evidence so far. I have come to the bill late, having only recently assumed new responsibilities.

I was struck by the power of the evidence that was given last week on the issues, which go far beyond financial consideration and damages. I was especially struck by the evidence from Frank Maguire, who spoke about an individual who wants to have his case resolved so that he can have certainty in his life while he is dying. As well as finality, he wants justice. He wants someone to be brought to account for his condition. I thought that that was a powerful comment on the fact that this is about not just the financial needs and interests of the families, but about people wanting justice and recognition of what has caused their suffering. We recognise the importance of the bill for individuals and their families who are, as we speak, suffering the consequences of past decisions.

I would like to say something about retrospection. You will be aware that, as drafted, the bill will apply to cases in which a sufferer recovers damages or obtains a full settlement on or after the date on which the bill comes into force, which will be seven days after it receives royal assent. In cases in which the liability of the responsible person has been discharged prior to that date, that discharge will continue to bar any claim by the immediate family. I am aware that the committee has explored the issue with both pursuers and defenders and that no objections were made to limited retrospection to a date that would be announced by Scottish ministers. We have considered the issue carefully and agree that we should remedy the distressing dilemma that is currently faced by mesothelioma sufferers as soon as is reasonably practicable.

We have, therefore, decided that the bill's provisions should apply to any case in which the sufferer recovers damages or obtains a full settlement on or after 20 December 2006. We will lodge an amendment to the bill at stage 2 to that effect. That will mean that the dilemma that is faced by mesothelioma sufferers will be remedied from next Wednesday and that they will be able to proceed with their own claims in the knowledge that their families will not be disadvantaged. Sufferers will be able to settle their claims or seek accelerated proof dates, and some of them will be able to get and benefit from their own full damages payments before they die. Also, sufferers who have put off starting proceedings so as not to disadvantage their families will now be able to enter proceedings.

I am grateful to the committee for raising the issue and refining it in the evidence session last week. The consensus among the witnesses around the possibility of setting an earlier date has enabled us to respond swiftly and positively.

The Convener:

Thank you, minister. I am sure that I speak on behalf of the whole committee in welcoming the statement that you have just made. You will be aware that we were keen to explore the issue, and we are delighted with your response—as, I am sure, are Clydeside Action on Asbestos and all the other witnesses among whom there was consensus on the issue. They will be delighted with the Executive's approach in making the provisions of the bill apply retrospectively from 20 December 2006. The circumstances of these cases clearly require such a precedent to be set, although I appreciate that you will be keen for that precedent not to be followed in every other bill.

Stewart Stevenson:

I echo the convener's remarks. The minister shows great wisdom in responding to the fact that all the witnesses, on both sides of the argument, appeared to support a change to the bill. I have one minor question, although I do not believe that the issue affects anybody. Why has the date from which the bill's provisions will apply been set as next week rather than today?

Johann Lamont:

You will recognise that retrospection is a delicate matter—something that the convener has highlighted. We thought that it was important to give people notice of the change, so we allowed a week for notice to go out. Once people know about the change, they will have some certainty. We explored every option, including setting the date as today, but that was the advice that we received and it was on that basis that I made the announcement today.

So, in essence, by giving notice, the Executive is protecting itself from a particular kind of legal challenge, the effect of which would be to damage the effect of the bill. None of us wants that to happen.

The same wisdom that you reflected on earlier was involved in reaching a decision on the date.

That is fine. Thank you.

What is the basis on which the Scottish Executive determined to legislate on the issue at this juncture?

Johann Lamont:

The purpose of the bill was to address urgently and specifically a problem that the law of damages caused for mesothelioma sufferers, which is that most of them chose not to pursue their own claim in order that their families might benefit from the larger award that is made after death, as the committee heard in evidence. The conclusion of the consultation was that no comparable condition is on the horizon; a conclusion that was confirmed in oral evidence to the committee.

At present, under section 1(2) of the Damages (Scotland) Act 1976, claims that are made by the immediate family of someone who dies as a result of a personal injury are extinguished if the injured person settles their claim before they die. As the committee is aware, the bill seeks to disapply section 1(2) of the 1976 act in order to allow the immediate family of a mesothelioma sufferer to claim damages for non-patrimonial loss under section 1(4) of the act after the sufferer dies, irrespective of whether the deceased recovered damages or obtained a settlement. At the committee's last meeting, all the witnesses said in evidence that they supported the bill and agreed that it addresses the problem.

The Convener:

Minister, you will be aware of the context for our consideration of the bill: the issues that were raised in a petition to the Parliament on how the court system affects mesothelioma sufferers; the Coulsfield report; and the work that the former Justice 2 Committee did in the previous session of the Parliament.

I remind you that the Coulsfield report reduced the timescale in which civil cases are heard. On the back of that, the former Justice 2 Committee agreed with the Lord President that an even shorter timescale could be made available to mesothelioma sufferers. Cases that would have taken up to three years to come to court have been taken in as short a time as six months. Do you agree that the bill was an inevitable consequence of shortening the process as a result of Coulsfield?

Johann Lamont:

I am very aware of the role of the former Justice 2 Committee and the work that it did on Coulsfield. I am also very aware of the tireless work of campaign groups in bringing the issue to the attention of the Parliament, including through petitioning the Public Petitions Committee, and of the positive responses to that effort. I am aware of the work of MSPs in general in pursuing this issue, and in particular that of the Justice 2 Committee and Des McNulty MSP.

The convener asked whether the bill was inevitable. That is not necessarily the word that I would use. It is logical that if the time that it takes to make a claim is reduced, more people will be alive to have to make the dreadful decision that sufferers have to make at the moment. That emphasised to me the inevitability of death that people have to confront. In evidence last week, some groups said that some mesothelioma sufferers' lifespan can be a great deal shorter than the 18 months that is often given for the period from diagnosis to death. It is clear that shortening the period that it takes for a claim to be pursued has meant that more people have been caught up. The question of inevitability is a separate matter. The introduction of the bill reflects the capacity of committees, the Parliament and others to listen to the issues that were raised and pursued in such strong terms, particularly by the campaigning groups that speak on behalf of these families.

Mr McFee:

I echo the remarks about your announcement on retrospection. That will help some of those who had decided not to pursue their claims to re-think their decision and make a claim that will lead to an earlier settlement. At least there will be some form of limited justice in the situation.

The insurance industry, particularly in its initial submissions, claimed that the bill was unnecessary. They suggested that it was possible within the current legal framework for a claimant to make a claim and an application for interim damages, and then to suspend the claim until after their death, thereby preserving the rights of their relatives. How do you respond to that argument?

Johann Lamont:

In general, it seems from the evidence that people have accepted the necessity for the bill and, in so doing, have recognised that the interim damages approach will not satisfy the challenge that has been raised. Before we introduced the bill, we considered the view that it might be unnecessary because of the possibility of interim damages being paid and the sisting of cases until the victim dies. As the committee will be aware, there were only nine awards of interim damages for personal injury cases last year. We took the view that that would not be a reliable solution to the problem faced by mesothelioma sufferers. If it were, the dilemma would not exist.

In our view, legislative change is the only way to provide an early and certain solution to the problem. I believe that our view was borne out by the evidence that was given by witnesses last week. Despite close questioning by the committee, there was no consensus about the lack of use of the existing mechanism, and it was not clear that it would be used any more in the future. It will be able to be used alongside the change in the law that we are proposing, if that is what the parties agree.

I note that, last week, all the witnesses from the insurance sector supported the bill, and that there is no longer a suggestion that it is not necessary because of the possibility of interim damages being awarded.

Mr McFee:

Indeed. I think that the majority of members will vote to pass the bill, but will you join me in urging the insurance industry to continue in its efforts to speed up the settlement of claims in these and other cases, so that people are not unnecessarily kept hanging on for months, or years in some instances?

Johann Lamont:

We are very keen, particularly given the challenges of time and the circumstances of people with such conditions, for things to be done as speedily as possible, but as robustly as possible. We do not want there to be unnecessary or wilful delay. All those involved have now accepted the need for the bill, which indicates a willingness to take the proposed approach to the challenges that the families concerned are facing.

Mike Pringle (Edinburgh South) (LD):

Could you explain the process by which the Executive determined not to include in the bill a ministerial power of amendment to extend its provisions to other types of disease or personal injury? Some people have suggested that it should include such a power.

Johann Lamont:

I will ask those who were more responsible for the decisions around drafting the bill about that in a moment. We reflected on the comments that were made in response to the consultation about the importance of introducing legislation to address a particular problem that had been identified with a particular solution that would give certainty to those concerned. I do not know whether anyone wishes to comment more specifically about the decision not to take such a power.

Lorna Brownlee (Scottish Executive Justice Department):

We examined the responses to the consultation carefully in relation to that point. As we have said before, there was a mixed response. People had reservations for a number of different reasons. Some people thought that uncertainty would arise. That is possibly the kind of uncertainty that you heard about from Lisa Marie Williams last week. There was also concern that there could be a diversion away from the primary purpose. In the absence of any other relevant condition, the priority was to focus on mesothelioma.

Mrs Mary Mulligan (Linlithgow) (Lab):

I welcome your remarks this morning, minister. Having listened to the evidence last week, which indicated that there are already claimants who are waiting to find out the result of the scrutiny of the bill, I think that it is to the credit of the Scottish Parliament and the Scottish Executive that you have been able to respond as quickly as you have. People should appreciate that this is the sort of thing on which the Scottish Parliament makes a difference.

My question follows on from that of Mike Pringle and relates to other claims. Could you say a little more about any progress that has been made in reforming the law of damages and the work of the Scottish Law Commission in that regard? That was referred to by one of the witnesses last week.

Johann Lamont:

As has been said, in introducing the bill so quickly, it was ministers' clear objective to help mesothelioma sufferers and their families. However, the need to take that action pointed up the fact that there are areas of the law of damages that should be reviewed. The evolution of the law relating to damages recoverable in respect of deaths resulting from personal injury and recoverable by relatives of an injured person has resulted in complex provisions that, together with practice and procedures, can have unintended consequences. Therefore, we have asked the Scottish Law Commission to undertake a review of the 1976 act and the relevant elements of the Administration of Justice Act 1982, taking into account underlying practices and procedures.

The review will consider the position of other personal injury victims and their relatives. At common law, a relative could only claim damages if the deceased could still claim damages at the time of their death. That provision has been enshrined in Scottish statute since 1976. To do away with it would create a new duty of care between the liable person and the deceased person's immediate family. That would run counter to the dependent nature of the relatives' claim, which currently lies in the existence of an undischarged liability to an injured person that is based on a duty of care that the liable person owes to the injured person.

To make provision for an independent duty of care to the relatives of the deceased would extend the boundaries of delictual liability and, without a thorough appraisal of the rationale for it and an assessment of the impact and costs, it would be unwise and indefensible. Therefore, we have asked the Scottish Law Commission to report on the matter and reflect on the broader issues that have emerged from the focus on mesothelioma.

Have you placed any timescale on that consideration?

The Scottish Law Commission will report in 2008 and we—or, I should say, the next Administration—will then respond to its report.

Are you quite comfortable with dealing with the issues that are connected to mesothelioma separately from what will be a fairly wide-ranging review?

Johann Lamont:

Absolutely. We recognise that there is a particular problem. A particular solution for the sufferers has been identified and supported, but it flags up the fact that there are other issues. I do not have a view on the range of those issues or the solutions to them, but the Scottish Law Commission will afford the Executive the opportunity for further consideration of those matters in due time.

Margaret Mitchell:

When the Scottish Executive officials gave evidence, they seemed to envisage that the bill would trigger two actions—one for a sufferer's damages claim and one for their relatives' claim. However, Frank Maguire, who represents sufferers and who gave evidence last week, seemed to think that, in certain circumstances, only one action would be necessary. Will you comment on that?

Johann Lamont:

I will make a couple of comments and then the officials will expand on them. We are aware that the issue was explored last week in committee. In the financial memorandum, we said that two actions may be raised instead of one in future because, if the victim is able to settle before death, the relatives will raise their own action. At present, if the victim does not settle, there is a single claim by the executor and relatives.

The committee heard evidence that pursuers would prefer one action rather than two, as having two separate actions would increase costs. I think that it would be reasonable to presume that defenders would also prefer there to be one action rather than two because of costs. We have noted that point and are looking into the possibility of a single action in such cases. It is my intention to report back to the committee as soon as possible. It may be that, when the bill is passed, some defenders will settle the relatives' claims without their having to return to court at all.

Paul Cackette (Scottish Executive Justice Department):

It may beneficial if I add a few words to that, as I think that it was my evidence from two weeks ago that referred initially to the idea that two actions could be needed. The thinking behind that was that the way in which the bill resolves the dilemma that victims face, thereby allowing them to raise proceedings while they are still alive, gives rise to a slight mismatch between the victim's claim, which would be raised in their lifetime, and the relatives' claim, which would arise after and only because of the victim's death. It seemed to me that those were two mutually exclusive concepts and that it was difficult to understand how the initial action could include a claim by the relatives for damages that could not arise until a later date.

That is what led me to think that there might be a need for two actions, but that was a purist's analysis of the claim. I listened closely to what Mr Maguire said last week and I defer to those who have practical experience of dealing with litigation in the courts. If practitioners believe that a way can be found to ensure that cases can proceed with one action, we would welcome that. As I said, I defer to their assessment of how things work in practice. I have explained the underlying thinking that made me conclude that there might be a need for two actions, but if the matter can be resolved, we would welcome that.

Margaret Mitchell:

So it will depend on the circumstances. If the sufferer managed to make their claim before death, that would be the first action and the second action would be triggered on their death when the relatives claimed. However, if a period of time passed while they were in pursuit of the claim or they did not quite manage it, the claim could be dealt with in one action by the executor, who would act on the information that they held about the beneficiaries. Even then, however, a little discretion would need to be left to the court because the information might have changed substantially—for example, the beneficiaries might have changed because someone had died in the interim, but that information might not have been relayed. Could that be dealt with quite quickly or would it be left to the court's discretion?

Paul Cackette:

In practice, that is what happens when a victim dies before the case is settled. My understanding is that the executor takes forward the victim's case and the relatives' claim would arise at that point. In practice, the claims are rolled together into the continuation of a single case.

The scenario that we had in mind is one in which the victim was able to settle before they died. I perceive that, in such cases, a gap could arise. One of the various mechanisms that could be used is the sist. That could well be a means by which the relatives' claim could be rolled together into the one action at a later point.

Margaret Mitchell:

That is helpful.

Minister, has consideration been given to the financial consequences for insurance premiums? Like other members of the committee, I welcome your confirmation this morning that the bill's provisions will kick in on 20 December. Obviously, time is of the essence. However, will you comment on the effect on insurance premiums?

In oral evidence last week, the insurance representatives did not raise any concerns about costs. I do not know whether there has been a discussion about an impact on premiums.

Margaret Mitchell:

I think that the concern was more about the issue of certainty, which you resolved today when you stated that the provisions will kick in on 20 December. You have given quite a bit of notice, which is entirely reasonable. Given the evidence that we heard last week, I think that the insurance companies will be satisfied with that.

That is my expectation, given what was said last week. Through the bill and my statement this morning, we seek to provide the certainty that everybody wants.

Mr McFee:

Do you agree that some of the concerns that the insurance industry expressed earlier about costs should be more than offset by modern working practices, which mean that we will not have huge numbers of mesothelioma cases in future? Many cases arose from practices in the shipbuilding industry.

Johann Lamont:

As I said at the beginning, the issue is not just about money. It is about justice and the recognition and acknowledgement of fault. I do not pretend to know a great deal about it, but poor working practices led to significant consequences for people. I am confident that industry is now aware of those consequences and I trust that those who are involved in it recognise the significance of health and safety, not because of potential financial consequences later on but simply in the interests of a good society. People should not have to live with the intolerable consequences of poor working practices earlier in their lives.

The Convener:

I return to the question of the two separate actions, which we need to try to resolve, although we may understand how it will be resolved in practice. As you said, we heard from Frank Maguire, whose view is that the matter is for the courts to sort, perhaps by court rules or an act of sederunt. I am not happy to leave the situation like that. If that is how the issue is to be resolved, we should agree on that and leave it to the courts.

Several considerations need to be examined. Am I correct to say that the cases go to the Court of Session?

Paul Cackette:

Yes. In practice, all the cases are taken at the Court of Session.

So solicitors such as Thompsons Solicitors instruct a civil advocate to represent their interests at the Court of Session.

Paul Cackette:

Yes.

The Convener:

When a victim settles a case that is to go to the Court of Session, the question is whether the case is settled before it reaches court. I am thinking of cases that go to court. Solicitors would instruct a solicitor advocate or advocate to represent the victim. They would book a court for that and a fee would be charged for that. Later, the relatives could come along and make a claim, for which a solicitor advocate or advocate would be instructed and a court would be booked, unless the case was settled out of court, although even if that happened, administration work would still have to be done. Is it possible to achieve that in a single action or would the agreement of all the solicitors and the Faculty of Advocates be needed to achieve that?

Paul Cackette:

I do not know whether Bob Cockburn wants to say anything about the court processes. In effect, for the reasons that led me to think that two actions could be needed, resolution of the dispute would need to take place in two phases, because the causes of action arise at slightly different times. Whether that would necessarily give rise to significant extra costs might depend on the practice that develops.

In that context, one point that comes to mind is that if an insurer admitted the core liability to the victim and agreed to settle the first claim, I would certainly be surprised if, in practice, the insurer insisted on a full-blown proof of the relatives' claim. We have heard evidence that there is reasonable certainty and clarity as to how much compensation relatives would obtain and it must be relatively easy to prove who the victim's relatives are.

It is right to say that one action would have at least two phases. If the second phase required a continuation and sharing of information, I would have thought that court rules could allow that, to save preparation of a new process that had to narrate the same information all over again to construct the relatives' claim. It is difficult to estimate how much money that would save, but some saving would result from it.

The Lord President, rather than the Executive, makes the rules of court. I suspect that he may consider whether—perhaps ironically—anything in the Coulsfield rules, which push towards quick settlement and a rigid timetable, would inhibit the ability to continue or postpone a case until the victim dies, to allow the relatives' claim to proceed under the same process. I do not know whether Bob Cockburn has further thoughts on how things work in practice.

Bob Cockburn (Scottish Court Service):

I doubt whether I can usefully add much to what Paul Cackette said. Your assessment is correct, convener. The second claim will involve some process. It will need to be set out and responded to in writing—that assumes that it needs to go to court at all. Some process will follow that. The two claims will be similar.

If savings are to be incurred, they will probably relate to the fact that the court will have access to the initial claims papers and some of the evidence that was made available for the first claim will be available for the second claim. However, as Paul Cackette said, it is difficult to quantify the saving financially.

The Convener:

We need to consider this further. We might go back to some of the witnesses for a bit more detail. It might well be that if the court rules allowed the action to be sisted so that those involved in the second action could at least get access to the original papers, then the rest of it might be down to the arrangement that a solicitor has with their representative in the Court of Session.

Paul Cackette:

The key thing is to ensure that nothing in the court rules will be able to stop that. It is that way round rather than the other way round.

That is helpful.

As I have said, we intend to report back to the committee on our considerations and we will do that as soon as we can.

The Convener:

That is helpful.

As there are no further questions, I thank the minister for her evidence. We are delighted with all that she has said. I also thank the bill team and the witnesses who have appeared this morning.

Having achieved a world record time in taking evidence from the minister this morning and dealing with the bill so speedily, we now have time to deal with other important matters.