At the heart of the case was the validity of the Personal Injuries Guidelines, introduced under the Judicial Council Act 2019, and which came into effect in April 2021. The Guidelines, which were introduced primarily to slash minor-injury compensation awards and were designed to bring consistency and predictability to the compensation awarded in personal injury claims, faced a rigorous constitutional challenge. A seven-judge court delivered judgment.
The decision means that the Judicial Council approved Guidelines are legally binding and any changes to them will require legislation.
Background
In April 2019, Ms. Delaney suffered injuries when she tripped and fell on a footpath. As a result of the fall, she sustained a fractured ankle. Her solicitors advised her on the quantum of damages based on the Book of Quantum, estimating a range between €18,000 and €34,000. According to the Personal Injuries Assessment Board (PIAB) Act 2003, Ms. Delaney was required to apply to PIAB for assessment or authorisation before proceeding with any legal action.
Ms. Delaney's case was subjected to significant delays, due to the impact of COVID-19 and other factors. Ultimately, PIAB issued its assessment on the 14th of May 2021, approximately one month after the Personal Injuries Guidelines had come into effect, replacing the Book of Quantum. Consequently, her injuries were assessed under the new Personal Injuries Guidelines framework, rather than the Book of Quantum, resulting in a significantly lower compensation assessment of €3,000.
The decision
The Delaney case has clarified the constitutional status of the Personal Injuries Guidelines, affirming their validity while also highlighting significant legal challenges related to their future review and adoption. For now, the Guidelines remain the governing standard for assessing damages, however, their future evolution will depend on the legislative responses to the Supreme Court's decision.
On the horizon
- The prospect of some long-awaited reform of defamation law moves closer, with the publication of the Defamation (Amendment) Bill 2024 (“the Bill”) on 2 August last year. The Bill, if passed, will amend existing provisions of the Defamation Act 2009 (the “2009 Act”), and will introduce some notable changes to our existing defamation regime, particularly in relation to defending retail defamation claims.
- Introduction of Mediation as a service in motor claims by the Injuries Resolution Board, to add to the offering already available in public liability and employers liability claims.
- A review of the Personal Injuries Guidelines is now overdue, however, following the comments of the Supreme Court in the Delaney case, it appears that new legislation will need to be enacted before a legally binding review can be carried out.
