Q&As

Where a claimant in proceedings (which have settled) lacks capacity and a deputy has been appointed, can an interim sum be paid direct to the deputy or should it be paid into the Court Funds Office?

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Produced in partnership with David Peters
Published on LexisPSL on 30/08/2016

The following PI & Clinical Negligence Q&A produced in partnership with David Peters provides comprehensive and up to date legal information covering:

  • Where a claimant in proceedings (which have settled) lacks capacity and a deputy has been appointed, can an interim sum be paid direct to the deputy or should it be paid into the Court Funds Office?
  • Capacity, protected parties and settlement
  • The appointment of a deputy
  • The role of the Court Funds Office
  • Interim payments to a protected beneficiary
  • Obtaining the approval of the court

Any interim payment ought to be made directly to the deputy. Before doing so, the approval of the Court must be obtained.

Capacity, protected parties and settlement

A person who lacks the ability to make decisions for themselves due to an abnormality of mental functioning is said to ‘lack capacity’, pursuant to section 2 of the Mental Capacity Act 2005 (MCA 2005). When such a person is a party to litigation, and the decisions relate to the litigation, they are said to be a protected party, pursuant to CPR 21.1(2)(d). See Practice Note: Mental capacity in personal injury claims.

Pursuant to CPR 21.10(1), any settlement, compromise or payment arising from a claim on behalf of a protected party is invalid unless it has been approved by the Court. See Practice Note: Claims involving a mentally incapacitated claimant—court approval.

The appointment of a deputy

If a sum greater than £50,000 is to be invested on behalf of a protected beneficiary (a protected party who lacks capacity to make financial decisions relating to compensation recovered in the proceedings, purs

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