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Dáil Éireann debate -
Thursday, 18 Feb 1988

Vol. 378 No. 2

Ceisteanna—Questions. Oral Answers. - Insurance Costs.

7.

asked the Minister for Justice the present position in regard to the following matters which have been proposed by the Minister for Industry and Commerce as means of reducing insurance costs: (a) the publication of a book of quantum of damages (b) the introduction of an extended system of pre-trial procedures and (c) the reduction of the level of legal representations in the superior courts.

22.

asked the Minister for Justice if he will indicate the progress made in examining the scope for publication of a book of quantum of damages, with a view to reducing liability insurance rates, as promised in the Programme for National Recovery; and if he will make a statement on the matter.

I propose to take Questions Nos. 7 and 22 together.

I am examining these matters in connection with commitments in the Programme for National Recovery.

As regards the publication of a book of quantum of damages, I have arranged to have this matter discussed by the Incorporated Council of Law Reporting for Ireland, on which I am officially represented, to ascertain how such a project could be undertaken. While I am, of course, prepared to give what assistance I can, it is likely that this matter will be found to be more appropriate to be done by publishers of existing legal journals and textbooks.

A provision to facilitate the introduction of a system of pre-trial procedures in the High Court is among proposals that I am considering in connection with a proposed Court and Court Officers Bill. Preparation of the Bill is at an advanced stage. I hope to be in a position to bring any proposals before the House soon.

As regards the level of legal representation in the superior courts, the position is that the Government have decided that an amendment should be proposed to the Courts Bill, 1986, which is awaiting Committee Stage in the Dáil, to empower me to make regulations to limit the number of counsel whose costs may be recovered by a successful litigant in a personal injury or fatal accident damages case. The Deputy will be aware that the Bar Council decided recently to abandon the practice of requiring that three counsel should be briefed in these types of cases in the High Court. However, I should mention that the general question of the number of legal representatives required in a case is the subject of a current study of the legal profession by the Restrictive Practices Commission.

Will the Minister indicate when he expects a book of quantum damages to be published in this country?

The interests already involved will give the matter serious attention and I expect it will come on stream as soon as the legislation is passed.

Is it not the case that the publication of such a book was the subject of a ministerial announcement which suggests that the Government will do something about it?

That is not so.

The Minister for Industry and Commerce proposed this. Will the Minister be surprised to hear that I am somewhat disappointed with his answer which indicated that this matter is seemingly to be handed over to a private firm who will do it, presumably, for commercial gain?

A book of quantum damages is a collection of reports on decisions by the courts on the assessment of damages in personal injury and fatal accident cases. It would provide a guide to lawyers for valuing, settling or pleading these cases. It could be cited in court and its preparation is a matter of law reporting which could be undertaken by any of the private agencies involved in this area such as the Incorporated Council of Law Reporting which publishes the Irish Reports and other legal texts. It could also be published by the Irish Law Times or the Irish Reports Monthly. The book of quantum damages published in Britain was published privately by Kemp and Kemp and when civil injuries are abolished in personal injury cases, judges will be expected to give reasoned judgments in deciding these cases — juries do not. Reports on these cases would then have to cover the facts and issues relevant to the assessment of damages by judges as well as the amounts of damages awarded. Such reports are traditionally prepared by barristers who are present during the cases. The Chief Registrar of the High Court who was consulted, indicated that the production of any information for a book of quantum damages from court records and files would be beyond their financial and staff resources. He suggested that even court records would be inadequate for proper case reporting purposes. The publication of the book of quantum damages should be economically an attractive project for legal publishers when judges start deciding personal injury cases. I, as Minister with responsibility in this area, did not at any time say that the Government would be responsible for the production of such a book.

Will the Minister give a time prediction as to when he expects the new system of pre-trial procedures and the regulations he proposes to make in respect of legal representation to come into effect? Will it be one year or six months?

I understand that the enactment of the Courts Act, 1986, is expected to result in some improvement in the pre-trial stage in personal injury cases, particularly in regard to their listing. With regard to further improvements, the proposed courts and court officers Bill is at an advanced stage of preparation in the Department and it contains provisions which will increase the jurisdiction of the Master of the High Court to enable him to deal with a range of matters which must be dealt with at present by High Court judges in court. It is also proposed that further jurisdiction may be conferred on the Master by rules of court and one effect of this will be that a system of pre-trial procedures may be introduced by rules of court. These would provide that, before a case could be put down for trial, the Master would conduct a preliminary hearing with a view to having subsidiary issues arising in the case settled which would result in a shortening of trials. Rules of court for pre-trial procedures could be expected to make provision also for automatic discovery between parties of certain documents in personal injury cases, the exchange of reports of expert evidence and for procedures to ensure that as much agreement as possible in expert evidence is arrived at before the case comes to trial. The sooner the legislation is under way the better, as far as I am concerned, because it would all fall into place fairly rapidly. I would appreciate help from other parties to get this legislation to the House as soon as possible.

As the objective of the exercise is to secure a reduction in insurance costs, will the Minister tell the House what steps he has taken — or intends to take — in relation to the insurance companies to lead to the achievement of the reduction of insurance costs, without which the whole exercise is not worth while?

The Deputy realises that that question should be addressed to the Minister for Industry and Commerce.

When will the Minister's Department be in a position to present the Bill to the Whips' meeting?

The Deputy as a Whip should know more about them than I do.

We have been waiting for this for a long time.

We know what the Deputy did to our Whip last night.

I did a good job.

Has the Minister considered what effect the tidying up of the legal process, such as the abolition of juries, two seniors, etc. might have on the ability of a poor man, or one of moderate means, to have his case presented in court unless free legal aid is introduced? If the Minister abolishes the two seniors system and juries, insurance companies will bash the small litigant about from court to court and from judge to judge with the result that one senior will not tie himself in court for weeks and weeks in a case. Nearly everybody is a poor man when it comes to going to court and it will be very difficult to afford the fees involved.

I fully appreciate the concern expressed by Deputy Tom Fitzpatrick and I have no doubt that it will give us all much food for thought on Committee Stage.

Will the Minister have discussions with the Minister for Industry and Commerce to try to obtain specific proposals from insurance companies in regard to costs?

I appreciate the Minister's courteous reply. He said he would gladly accept assistance from interested parties. Does he intend setting up an all-party committee to investigate this matter because the point raised by Deputy Tom Fitzpatrick should be examined? As he said, the ordinary man in the street will have little recourse to the legal system if he tries to take on very wealthy companies.

Having regard to the fact that Deputy Enright is a lawyer, and familiar with what goes on, I am sure he will accept that no Member of this House would like to see a situation of the kind mentioned by Deputy Tom Fitzparrick. A Bill such as the one about which we are talking, which is totally non-political, is best debated in the House.

Is the Minister aware that a number of the major insurance companies have imposed a one-senior rule on legal representation in the superior courts, that this has applied for some time? It has not resulted in any reduction in insurance costs to the consumer and the proposals contained in Question No. 7 will, to a great extent, be cosmetic unless there is direct Government intervention to control the cost of insurance to the consumer. Will the Minister agree that whatever rearrangements are made in regard to abolishing juries or whatever will achieve nothing unless there is some form of central control on insurance costs?

That is a separate matter, Deputy.

I am sure, a Cheann Comhairle, you will probably rule me out of order if I start to talk about my concern regarding the way insurance companies conduct their business. I should like to tell the House that that is not my responsibility. As a citizen I am concerned about the cost of insuring vehicles, particularly for young people. It is my intention, as I am sure it is the intention of all Members, to help those people.

That is the whole object of the exercise.

It would not be appropriate for me to go further into this matter today. We will have ample opportunity later. The legislation is on the launching pad and we can discuss it when it reaches the House.

I hope the Minister will not pay too much attention to special pleadings.

Is the Deputy suggesting that members of the legal profession be barred from participating in the debate?

I suggest that the Minister reduce the 25 per cent VAT imposed on insurance companies.

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