Swift v Carpenter & Anor

Swift v Carpenter & Anor

The Roberts v Johnstone approach is no longer capable of delivering fair and reasonable compensation in the context of negative or low discount rates. The appropriate method is to award the additional capital cost of accommodation required by the claimant, less the present value of the reversionary interest in that property, calculated using a 5% discount rate. This approach avoids overcompensation while ensuring the claimant can purchase suitable accommodation.

Parties
Appellant: Charlotte Swift; Respondent: Malcolm Carpenter; Intervener: Personal Injuries Bar Association
Jurisdiction
England and Wales
Judgment Date
09 October 2020
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
Damages, Accommodation Claims, Discount Rate, Reversionary Interest, Full Compensation
Tort Personal Injury Damages Accommodation Claims Discount Rate Reversionary Interest Full Compensation

Case Brief

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Parties

Charlotte Swift

Appellant

Malcolm Carpenter

Respondent

Personal Injuries Bar Association

Intervener

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Roberts v Johnstone approach to accommodation claims remains appropriate in the context of negative discount rates
  2. 2 Whether the Court of Appeal is bound by Roberts v Johnstone
  3. 3 How to fairly compensate claimants for the additional capital cost of special accommodation without overcompensation

Ratio Decidendi

The Roberts v Johnstone approach is no longer capable of delivering fair and reasonable compensation in the context of negative or low discount rates. The appropriate method is to award the additional capital cost of accommodation required by the claimant, less the present value of the reversionary interest in that property, calculated using a 5% discount rate. This approach avoids overcompensation while ensuring the claimant can purchase suitable accommodation.

Court Disposition

appeal allowed

Orders

  • The decision of the High Court declining to make any award for the additional capital cost of accommodation is quashed.
  • Damages of £801,913 are awarded to the appellant for accommodation needs, calculated as the additional capital cost less the value of the reversionary interest at a 5% discount rate.