report on section 2 of the civil liability (amendment) act, 1964

169 Pages·2003·0.61 MB·English

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REPORT

ON

SECTION 2 OF THE CIVIL LIABILITY (AMENDMENT) ACT,
1964: THE DEDUCTIBILITY OF COLLATERAL BENEFITS
FROM AWARDS OF DAMAGES

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(LRC 68 - 2002)

IRELAND

The Law Reform Commission

IPC House, 35-39 Shelbourne Road, Ballsbridge, Dublin 4
© Copyright The Law Reform Commission 2002
First Published December 2002

ISSN 1393 - 3132

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THE LAW REFORM COMMISSION

Background

The Law Reform Commission is an independent statutory body
whose main aim is to keep the law under review and to make practical
proposals for its reform. It was established on 20 October 1975,
pursuant to section 3 of the Law Reform Commission Act 1975.

The Commission’s Second Programme for Law Reform, prepared in
consultation with the Attorney General, was approved by the
Government and copies were laid before both Houses of the
Oireachtas in December 2000. The Commission also works on
matters which are referred to it on occasion by the Attorney General
under the terms of the Act.

To date the Commission has published sixty six Reports containing
proposals for reform of the law; eleven Working Papers; nineteen
Consultation Papers; a number of specialised Papers for limited
circulation; An Examination of the Law of Bail; and twenty three
Reports in accordance with section 6 of the 1975 Act. A full list of its
publications is contained in Appendix C to this Report.

Membership

The Law Reform Commission consists of a President, one full-time
Commissioner and three part-time Commissioners. The
Commissioners at present are:

President The Hon Mr Justice Declan Budd
High Court

Commissioners Patricia T Rickard-Clarke
Solicitor

Dr Hilary A Delany, Barrister-at-Law
Senior Lecturer in Law, Trinity College Dublin

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Professor Finbarr McAuley
Jean Monnet Professor of European Criminal
Justice, University College Dublin

Marian Shanley
Solicitor

Secretary John Quirke

Research Staff

Legal Researchers Jane McCullough BCL, EMA (Padua),
Barrister-at-Law
Mairéad O’Dwyer MB, BCh, BAO, BCL,
Barrister-at-Law
Simon Barr LLB (Hons), BSc
Claire Morrissey BCL (Int’l), LLM (K U
Leuven)
Claire Hamilton LLB (Ling Franc), Barrister-
at-Law
Patricia Brazil LLB
Mark O’Riordan BCL, Barrister-at-Law
Philip Perrins LLB, LLM (Cantab), of the
Middle Temple, Barrister
Darren Lehane BCL, LLM (NUI)

Administration Staff

Project Manager Pearse Rayel

Legal Information
Manager Marina Greer BA, H Dip LIS

Cataloguer Eithne Boland BA (Hons) H Dip Ed, H Dip
LIS

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Higher Clerical Officer Denis McKenna

Private Secretary to the President Liam Dargan

Clerical Officers Teresa Hickey
Gerry Shiel
Sharon Kineen

Principal Legal Researchers on this Report

Nessa Cahill LLB, LLM (Bruges), Barrister-at-Law
Niamh O’Brien LLB, LLM (Cantab), Barrister-at-Law

Contact Details

Further information can be obtained from:

The Secretary
The Law Reform Commission
IPC House
35-39 Shelbourne Road
Ballsbridge
Dublin 4

Telephone [phone]
Fax No [phone]
Email [email protected]
Website www.lawreform.ie

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NOTE

This Report was prepared on the basis of a reference from the
Attorney General dated 12 December 1997, pursuant to section
4(2)(c) of the Law Reform Commission Act 1975. The subject matter
of this Report is also included in the Commission’s Second
Programme for Law Reform, already referred to, which extends the
Commission’s involvement in this area.

A Consultation Paper on the subject matter of this Report was
published in August 1999 (CP 15-1999) and after extensive research
and consultation, including consultation with those that attended the
seminar mentioned in Appendix B to this Report, the Commission
puts forward these proposals for reform.

While these recommendations are being considered by the
Department of Justice, Equality and Law Reform, informed
comments or suggestions can be made to the Department by persons
or bodies with special knowledge of the subject.

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TABLE OF CONTENTS

INTRODUCTION………………………………………………... 1

CHAPTER 1 INSURANCE……………………………… 5

Part A Introduction………………………………………… 5
Part B History and Policy…………………………………. 6
Part C The Present Law…………………………………… 11
Part D The Individual Policies…………………………….. 19
Part E The Triangular Relationship: Who Pays?.................. 27
Summary of Recommendations in Chapter 1……………………… 34

CHAPTER 2 CHARITABLE BENEFITS........................ 37

Part A The Present Law…………………………………… 37
Part B Reform of the Law…………………………………. 38
Summary of Recommendations in Chapter 2……………………… 43

CHAPTER 3 OCCUPATIONAL PENSIONS………….. 45

Part A Introduction…………………………………………45
Part B Policy………………………………………………. 47
Part C Enhancement of Benefits…………………………... 53
Part D Who Pays?................................................................. 55
Part E Loss of Post-Retirement Pension Rights…………... 56
Summary of Recommendations in Chapter 3……………………… 59

CHAPTER 4 SICK PAY………………………………… 61

Part A Introduction………………………………………… 61
Part B The Three Categories of Sick Pay…………………. 64
Part C Recommendations for Reform……………………... 74
Part D Who Pays?................................................................. 75
Summary of Recommendations in Chapter 4……………………… 88

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CHAPTER 5 SOCIAL WELFARE PAYMENTS........... 89

Part A Social Welfare……………………………………… 89
Part B Double Recovery in the Context of Social Welfare... 91
Part C The Impact of the ‘Paid for’ and ‘Social Welfare’
Arguments on Social Welfare Payments………….. 93
Part D The Statutory Exceptions………………………….100
Part E The Five Year Rule………………………………..107
Part F Drafting……………………………………………112
Part G Who Pays?...............................................................117
Summary of Recommendations in Chapter 5……………………..126

CHAPTER 6 FATAL INJURIES……………………….129

Part A Introduction………………………………………..129
Part B Background………………………………………...132
Part C Individual Collateral Benefits……………………...133

CHAPTER 7 SUMMARY OF
RECOMMENDATIONS………………...137

APPENDIX A FIRST SCHEDULE AS REFERRED
TO IN CHAPTER 5……………………...143

APPENDIX B PARTICPANTS AT THE
COLLOQUIUM………………………….145

APPENDIX C LIST OF LAW REFORM
COMMISSION PUBLICATIONS………147

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