Claims involving a child—investment of damages
Claims involving a child—investment of damages

The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:

  • Claims involving a child—investment of damages
  • Court directions for investment
  • Investment documents required at the approval hearing
  • Damages awarded at trial
  • Position when claimant reaches 18

Claims involving a child—investment of damages

Court directions for investment

If damages are recovered on behalf of a child following a settlement or at trial, the money will not be paid out to the child or their legal representatives immediately but will be dealt with in accordance with directions given by the court.

The basic principle is that the court must give directions as to what will be done with the money.

The court has a fairly wide discretion. The court may give directions to provide that the money will be wholly or partly paid into court and invested or otherwise dealt with.

The court may direct that:

  1. the money be paid into court for investment

  2. certain sums be paid directly to the child, their litigation friend or their legal representative for the immediate benefit of the child or for expenses incurred on their behalf, and

  3. the application in respect of the investment of the money be transferred to a local district registry

The court will consider the general aims to be achieved for the money in court (the fund) by investment and will give directions as to the type of investment.

The key issue is usually whether to invest the money or to pay out sums for the immediate benefit of the child or for expenses incurred on their behalf. The court can direct that some or all of the

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