Future Loss Accommodation Claims – The ‘Loss of the Use of Capital’ Problem

Many practitioners are familiar with the difficulties with the calculation of future loss for a claimant’s accommodation claim. Both the JR and more recently Swift judgments provided some guidance, but we are still left in a position in law, where the Roberts v Johnstone accommodation calculation still stands.

This currently leaves claimants in the illogical situation, that despite a clear need for suitable accommodation, the calculation methodology gives rise to a nil-loss . The situation is not really a R v J ‘shortfall’ in a financial sense which can be made up out of other losses such as PSLA etc.

More than ever, there is a need for expert advice on how to approach accommodation claims. Whilst it is for the Courts to determine how in law they tackle the issue in a negative or low discount rate environment, the specialist directors at Nestor are assisting many claimant legal teams to help them work out a range of accommodation funding options, including ‘loss of the use of capital.’

Given that Part 2 of the Civil Liability Bill (Personal Injury Discount Rate) has now passed through 3rd reading and committee stage at the House of Commons, it is likely that the Bill will be enacted early next year. Irrespective of what the discount rate may become, valuing future loss accommodation claims will still be problematic, and we are here to help.

Our ‘accommodation funding report’ provides practitioners and their clients with workable and imaginative financial solutions for accommodation claims, and this can be done in expert witness format. Our reports are prepared in accordance with CPR and cost around £1,200 including VAT, depending on complexity.

Financial advice is needed when considering the range of solutions that could potentially assist the claimant when future loss accommodation claims are being valued.  Please contact your usual director or contact us and we would be happy to help.

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