BGIM v Kyle Newby

The court must approve a proposed settlement for a protected party only where satisfied that it is in that party’s best interests. The assessment is holistic and must consider the settlement in the round, including the proposed damages structure, deductions, costs retention and payments to carers. A lump sum may be approved where the parties have considered periodical payments and the circumstances justify that form. The court may continue an anonymity order where the applicable principles support effective protection of the claimant’s identity.

The claimant, a protected party lacking capacity following a traumatic brain injury sustained in a road accident, brought a damages claim through her father as litigation friend. Liability had previously been agreed at 70:30 in her favour. The parties later agreed a £3.9 million lump-sum settlement, subject to deductions, costs retention and a payment to the claimant’s parents for past gratuitous care. The hearing concerned approval of that settlement and continuation of the existing anonymity order.

1. The proposed settlement was approved. The court was satisfied that it was in the claimant’s best interests, having considered the legal opinion, financial-planning report, solicitor’s evidence and the other relevant documents.
2. The settlement had to be assessed in the round. The court approved the proposed lump sum of £3.9 million, the deduction of interim payments and the compensation-recovery payment, the provisional costs retention, and the proposed payment to the claimant’s parents representing 70% of past gratuitous care.
3. The parties had considered whether damages should be paid wholly or partly by periodical payments. The circumstances provided good reasons for adopting a lump-sum settlement instead.
4. The anonymity order was continued. Having regard to the principles in X v Dartford and Gravesham NHS Trust [2015] 1 WLR 3647, the court considered continued anonymity necessary to provide proper and effective protection.
5. The settlement was approved and an order was made in the form proposed.