YM (a child ) v Gloucestershire Hospitals NHS Foundation Trust & Anor

YM (a child ) v Gloucestershire Hospitals NHS Foundation Trust & Anor

The court held that, due to the specific arrangements and agreements made between the NHSLA, the Secretary of State, and the defendant Trusts—including the NHSLA being named as the responsible party for periodical payments, collateral contracts enforceable by claimants, and undertakings by the Secretary of State to fund the NHSLA in the event of insolvency—the continuity of periodical payments was reasonably secure within the meaning of section 2(3) and 2(4)(c) of the Damages Act 1996. The orders were therefore approved.

Parties
Claimant: YM (A child and patient by her Mother and Litigation Friend EH); First Defendant: Gloucestershire Hospitals NHS Foundation Trust; Second Defendant: Secretary of State for Health; Claimant: Joseph Samuel Kanu (A Patient suing by his Father and Litigation Friend, Samuel Kanu); First Defendant: King’s College Hospital Trust
Jurisdiction
England and Wales
Judgment Date
12 April 2006
Procedural Posture
Civil (clinical Negligence) / Judgment Following Approval of Settlement and Periodical Payment Orders
Outcome
Settlement approved; periodical payment orders made; court satisfied as to reasonable security of payments.
Legal Topics
Clinical Negligence, Damages—periodical Payments, Enforcement of Judgments, Statutory Interpretation
Tort Law Health Law Civil Procedure Clinical Negligence Damages—periodical Payments Enforcement of Judgments Statutory Interpretation

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Parties

YM (A child and patient by her Mother and Litigation Friend EH)

Claimant

Gloucestershire Hospitals NHS Foundation Trust

First Defendant

Secretary of State for Health

Second Defendant

Joseph Samuel Kanu (A Patient suing by his Father and Litigation Friend, Samuel Kanu)

Claimant

King’s College Hospital Trust

First Defendant

Procedural Posture

Civil (clinical Negligence) / Judgment Following Approval of Settlement and Periodical Payment Orders

Legal Issues

  1. 1 Whether the continuity of periodical payments under settlement orders involving NHS Foundation Trusts is 'reasonably secure' as required by section 2(3) of the Damages Act 1996
  2. 2 Whether the arrangements between the NHSLA, the Secretary of State, and the Trusts provide sufficient security for claimants in the event of insolvency or dissolution of the Trusts

Ratio Decidendi

The court held that, due to the specific arrangements and agreements made between the NHSLA, the Secretary of State, and the defendant Trusts—including the NHSLA being named as the responsible party for periodical payments, collateral contracts enforceable by claimants, and undertakings by the Secretary of State to fund the NHSLA in the event of insolvency—the continuity of periodical payments was reasonably secure within the meaning of section 2(3) and 2(4)(c) of the Damages Act 1996. The orders were therefore approved.

Court Disposition

Settlement approved; periodical payment orders made; court satisfied as to reasonable security of payments.

Orders

  • Defendants to make specified lump sum and periodical payments to or for the benefit of the claimants, with the NHSLA responsible for periodical payments as set out in the orders and schedules.
  • Claimants' costs to be paid by defendants, subject to detailed assessment if not agreed.