Alternative methods of compensation in damages claims

Abstract

In cases of compensation for personal injury and death claims, one of the main hurdles for the Courts is to liquidate damages in the best possible manner as to fulfil the restitutio in integrum maxim, a principle which is one of the cornerstones behind the awarding of damages in tort claims. The lump-sum method is currently the only method used by the Maltese Courts when compensating victims of tort. Although this method works for the majority of cases and might seem to be the best method possible, there can be certain circumstances where an award in the form of a lump-sum could leave a lot to be desired. Its limitations are highlighted in cases where the future is uncertain. This gives rise to educated guesses that could sometimes be seen as more of a gamble rather than a certainty. For this reason, this thesis will examine alternative methods of compensation applied in foreign jurisdictions to the more traditional lump-sum method. The alternative methods that will be considered are annuities, interim payments and provisional damages. Moreover, this thesis will look at situations in which these methods are more appropriate and whether they can contribute towards a better local justice system. With a tendency where cases take years to be concluded, personal injury victims or victims’ dependants might need immediate financial assistance, especially in circumstances where constant medical care is needed. Would compensation after a considerable number of years be effective or would it be a typical example of justice delayed is justice denied? In this context, an analysis of these alternative methods shall be made primarily by referring to foreign jurisdictions, with an investigation of the relevant texts, legislation and cases. Such assessment would then be used to validate or otherwise whether these methods can be adopted by the Maltese jurisdiction.