The following Private Client guidance note Produced in partnership with Thomson Snell & Passmore provides comprehensive and up to date legal information covering:
On the settlement of P's personal injury or clinical negligence case, the deputy must consider how best to invest the damages award.
The task of managing funds prior to taking longer term investment advice has become increasingly difficult. The deputy’s main aim during this initial period is to ensure that P’s funds are safe and earning some interest, pending longer term investment.
Once a case settles, an order will be drafted by the litigators for court approval. It used to be standard practice to include a clause in the order to provide for the damages award to be paid into court. A special account would be opened at the Court Funds Office (CFO) for P, and the funds could be accessed by the deputy via the procedures detailed below. This is still a valid option as a temporary holding place for the damages award, particularly since the funds are 100% guaranteed by HM Treasury. However, since the interest rate fell in 2009 from 6% p.a. to the present level of 0.5% p.a., leaving the funds in a CFO account will not always be a particularly attractive option.
Alternative options should therefore be considered.
It is essential that funds are protected and deposited in a safe account, which does not expose funds to any significant level of risk. The amount of
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