Blow for judges as minister decides against proposed 17pc increase to personal injury awards
Insurance companies had warned that such a rise would have led to even more premium rises.
The proposal from the Judicial Council needed to be approved by a change in the law to effect it.
Personal injury guidelines are used by the courts and the Injuries Resolution Board when assessing injury claims.
But it is understood that the proposal from the judges will not be voted into law.
A memo prepared by Justice Minister Jim O'Callaghan, to be presented to a Cabinet sub-committee on insurance reform, states that he will 'lay the guidelines in the Oireachtas but not move a resolution'.
This effectively means the recommendation of the Judicial Council to increase the guideline award levels will be laid before the Houses of the Oireachtas but not effected by legislative change.
Next week's full Cabinet meeting will be presented with Mr O'Callaghan's memo which effectively says the Government should not move to increase injury award levels.
This is seen as a major blow for the legal fraternity, but a victory for the likes of the Alliance for Insurance Reform, business lobby group ISME, Insurance Ireland, and insurance companies.
All of these groups said lawyers would be the main winners from any hike in the award guideline levels.
And the National Competitiveness and Productivity Council criticised the fact that the judges did not consult the Injuries Resolution Board before proposing higher award levels.
Business and consumer groups claim that higher awards will act as a greater incentive for lawyers to encourage their clients to avoid settlements in the Injuries Board, which does not pay legal costs, and litigate the claims instead.
Lawyers get huge legal fees for litigated cases.
The Central Bank has found that in liability claims the average award assessment of the board and one that is litigated both come in at €24,000.
Legal fees for cases settled through the Injuries Board average €597.
However, litigated cases have average legal costs of €24,786.
A sub-committee of the Cabinet, set up to drive insurance reform, discussed the matter today.
It is understood a memo presented to the sub-committee by Mr O'Callaghan states the also plans to amend the Judicial Council Act that would mandate judges to review award guidelines over a longer period than the current three years.
Judges will be forced to engage with the Injuries Resolution Board when considering changes to recommended award levels.
There is also mention of a commitment to legal reform, in the memo.
However, Minister O'Callaghan is also expected to convey his concerns to the sub-committee on insurance reform on the impact not increasing award levels could have on the Injuries Resolution Board.
There is a risk that the judiciary could start making increased awards outside of the guidelines.
At the same time the Injuries Board will not be permitted to increase its awards as it is obliged to impose the guidelines in place.
There is a risk that this combination could drive claimants back to the courts with a consequent increase in legal costs which will make the claims process more expensive.
This is something the minister is said to be cognisant of and plans to keep under review.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Independent
4 days ago
- Irish Independent
Government to review how IPAS applicants are managed in Wicklow
The move comes after concerns were raised about the high concentration of IPAS accommodation centres in west Wicklow in comparison to other areas of the county. Recent figures provided to a meeting of Wicklow County Council's Strategic Housing Policy Committee highlighted the geographical spread across the county, with 673 based solely within the Baltinglass Municipal District. Following a parliamentary question from Wicklow Sinn Féin TD John Brady, Migration Minister Jim O'Callaghan said it has not been possible for the State to apply specific policies in relation to the distribution of accommodation centres. 'IPAS was accommodating approximately 7,000 people at the end of 2021, and at the end of 2024, the total had grown to over 32,000 residents. 'As we respond to changing trends, and work toward a more stable and sustainable accommodation system in this sector, accommodation is being developed and delivered through a range of channels, with a focus on developing more State-owned accommodation.' Minister O'Callaghan said Ireland is now working to implement the EU Pact on Migration and Asylum in mid-2026. 'Reforming and speeding up processing of applications should also serve over time to reduce the scale of the demand for international protection accommodation.' 'The Department is also working to increase the amount of State-owned international protection accommodation and creating a more stable and sustainable accommodation system.' It is hoped a core supply of State-owned accommodation, of both emergency and permanent options will help to manage different accommodation types, locations and dispersal patterns nationwide. Separately no decision has been made in relation to the future of a proposed IPAS centre at The Avon Hotel in Blessington. 95 Ukrainians are being moved out the facility this week as the need for this type of accommodation has reduced over the last year. ADVERTISEMENT All offers of accommodation are reviewed by the Department under a standardised appraisal procedure which reviews the site suitability, the value for money it offers, planning matters and any works required to meet the required standards. Consideration is also given to the location in relation to access to services, resident welfare, health and wellbeing, and the current level of need in the sector. Local elected representatives and communities will be contacted by the Community Engagement Team about this property with any update. Meanwhile Kippure Holiday Village is currently contracted by the Department to provide accommodation service for people seeking international protection. The Department has acknowledged there is ongoing engagement between the provider and Wicklow County Council in relation to planning matters at the property. Kippure Holiday Village will continue to accommodate people seeking international protection until this engagement is concluded. The Department will then consider any potential impact on the contract that is in place between the service provider and the Department. Funded by the Local Democracy Reporting Scheme
Irish Independent
4 days ago
- Irish Independent
Refurbishment works at Wicklow courthouse subject to national funding
The former courthouse has been closed due to health and safety concerns since September 2010. Since then, Bray has served as the main court venue for County Wicklow. The Office of Public Works (OPW) has provided the Courts Service with costings and options for the full restoration of Wicklow Courthouse, ranging in price from around €13 million to €17 million. The Courts Service has also advised Justice Minister Jim O'Callaghan that Wicklow Courthouse was included in its submission for the NDP. This means that further progress in relation to the building and timeline for its complete refurbishment will depend on funding allocated under the revised plan. Public Expenditure Minister Jack Chambers completed a review of the plan in July 2025, however there was little detail on what specific projects will receive funding. In the meantime, the OPW has recently undertaken some works to preserve the roof of the building to address the dry rot which has spread to the adjoining buildings. The Courts Service has further advised that, while open to making the courthouse available for community usage, it is not currently able to do so for health and safety reasons. Despite that, officials from the Court Service have liaised with Wicklow County Council and made the adjoining former Library building available to the council, which has been used as a Ukrainian hub since 2022. In addition, the Courts Service are open to engaging with all interested parties on how the building can be used in the future.
Irish Examiner
5 days ago
- Irish Examiner
Hezbollah threatens to resume firing at Israel if it intensifies Lebanon action
The leader of Lebanon's Hezbollah warned on Tuesday that if Israel intensifies its military operations against his group, the Iran-backed armed faction will resume firing missiles toward Israel. Naim Kassem's comments came as Lebanon's Cabinet was meeting to discuss Hezbollah's disarmament. Beirut is under US pressure to disarm the group that recently fought a 14-month war with Israel and was left gravely weakened, with many of its political and military leaders dead. Since the war ended in November with a US-brokered ceasefire, Hezbollah officials have said the group will not discuss its disarmament until Israel withdraws from five hills it controls inside Lebanon and stops almost daily airstrikes that have killed or wounded hundreds of people, most of them Hezbollah members. Israel's interest is not to widen the aggression because if they expand, the resistance will defend, the army will defend and the people will defend. This defence will lead to the fall of missiles inside Israel Israel has accused Hezbollah of trying to rebuild its military capabilities. Israel's military has said the five locations in Lebanon provide vantage points or are located across from communities in northern Israel, where about 60,000 Israelis were displaced during the war. Since the ceasefire, Hezbollah has claimed responsibility for one attack on a disputed area along the border. In a televised speech on Tuesday, Kassem said Hezbollah rejects any timetable to hand over its weapons. 'Israel's interest is not to widen the aggression because if they expand, the resistance will defend, the army will defend and the people will defend,' he said. 'This defence will lead to the fall of missiles inside Israel.' Since the war ended, Hezbollah has withdrawn most of its fighters and weapons from the area along the border with Israel south of the Litani river. Last week, Lebanese President Joseph Aoun reiterated calls for Hezbollah to give up its weapons, angering the group's leadership. The ceasefire agreement left vague how Hezbollah's weapons and military facilities north of the Litani river should be treated, saying Lebanese authorities should dismantle unauthorised facilities starting with the area south of the river. Hezbollah maintains the deal covers only the area south of the Litani, while Israel and the US say it mandates disarmament of the group throughout Lebanon. Kassem said Hezbollah rejects a government vote over its weapons, saying such a decision should be unanimously backed by all Lebanese. 'No one can deprive Lebanon of its force to protect its sovereignty,' Kassem said. Hezbollah's weapons are a divisive issue among Lebanese, with some groups calling for its disarmament. The Israel-Hezbollah war started a day after the October 7 2023 Hamas-led attack against Israel from Gaza. It left more than 4,000 people dead and caused 11 billion dollars (£8.3 billion) of damage.
