Brown v Ministry of Defence [2006] EWCA Civ 546 (10 May 2006)

Brown v Ministry of Defence [2006] EWCA Civ 546 (10 May 2006)

The correct approach to assessing damages for loss of pension rights is to evaluate the probabilities of the claimant completing key service periods (6, 12, and 22 years) and to award damages proportionately, rather than assuming full service on the balance of probabilities. The chance of promotion to higher rank should be factored in only if supported by evidence. Damages for disadvantage in the labour market should be awarded only if there is a more than insignificant risk of future disadvantage, and the quantum should reflect the likely degree of disadvantage.

Citation
[2006] EWCA Civ 546
Parties
Claimant/respondent: Jennifer Anne Brown; Defendant/appellant: Ministry of Defence
Jurisdiction
England and Wales
Judgment Date
10 May 2006
Procedural Posture
Personal Injury Appeal / Court of Appeal (civil Division) on Second Appeal
Outcome
Appeal and cross-appeal allowed in part
Legal Topics
Assessment of Damages, Loss of Pension Rights, Disadvantage in the Labour Market, Loss of Congenial Employment, Causation, Future Loss Calculation
Tort Personal Injury Employment Assessment of Damages Loss of Pension Rights Disadvantage in the Labour Market Loss of Congenial Employment Causation +1 more

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Parties

Jennifer Anne Brown

Claimant/respondent

Ministry of Defence

Defendant/appellant

Procedural Posture

Personal Injury Appeal / Court of Appeal (civil Division) on Second Appeal

Legal Issues

  1. 1 What is the correct method for assessing damages for loss of pension rights where future service is uncertain?
  2. 2 Should damages for disadvantage in the labour market be awarded and, if so, in what amount?
  3. 3 How should the chance of promotion be factored into damages?

Ratio Decidendi

The correct approach to assessing damages for loss of pension rights is to evaluate the probabilities of the claimant completing key service periods (6, 12, and 22 years) and to award damages proportionately, rather than assuming full service on the balance of probabilities. The chance of promotion to higher rank should be factored in only if supported by evidence. Damages for disadvantage in the labour market should be awarded only if there is a more than insignificant risk of future disadvantage, and the quantum should reflect the likely degree of disadvantage.

Court Disposition

Appeal and cross-appeal allowed in part

Orders

  • Damages for loss of pension rights to be recalculated based on a 30% chance of completing 22 years' service, 50% chance of completing 12 years, and 100% chance of completing 6 years, with appropriate adjustments for rank and a 15% chance of promotion to WO1.
  • Award for disadvantage in the labour market restored but reduced to £5,000.