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Transcript of B usiness services c onstruction & property i nsurance & indemnity l eisure m edia & technology p...
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business services construction & property insurance & indemnity leisure media & technology public sector retail transport
LUG Conference 2007
Non-traumatic harm: risk factors & legal issues
Alistair Kinley & Vanessa Latham
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overview Introduction Asbestos compensation – legal & judicial agendas Policy coverage & triggers (Bolton v MMI) Noise-induced hearing loss Asymptomatic conditions & pleural plaques Harassment & discrimination Conclusions
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introduction By non-traumatic harm we mean conventional
occupational disease risks and also psychiatric injury• why is it topical?• interest for insurers• social issues
“ Liability for psychiatric injury … is in general no different in principle from liability for physical injury … It is foreseeable injury flowing from the … breach of duty that gives rise to the liability.”Scott-Baker LJ, Hartman v South Essex Mental Health [2005]
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Asbestos compensation
mesothelioma update - case law & legislation
recent government activity claims numbers
& claims handling
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mesothelioma update
??A B C
issue year consequence
Fairchild v Glenhaven 2002 House of Lords decides on joint & several liability for multiple tortfeasors
Barker v Corus 2006 House of Lords allows apportionment (discount) for unsued / untraced exposure
Compensation Act 2006 statutory reversal of Barker v Corus, to re-impose joint & several liability
FSCS reform 2006 for the first time allows FSCS to repay co-defendants and insurers & retains 90% pre-72
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recent Government activity
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current developments Child Maintenance &
Other Payments Bill Draft CPR Pre-Action
Protocol for Mesothelioma Claims?
Fatal Accidents Act reform (Scotland as example)?
a standardised judicial approach?
Ministry of Justice’s damages consultation
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claims numbers & claims handling
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1900
1907
1914
1921
1928
1935
1942
1949
1956
1963
1970
1977
1984
1991
1998
2005
2012
2019
2026
2033
2040
2047
Year
Asb
esto
s E
xpos
ure
inde
x
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Nu
mb
er o
f d
eath
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Exposure Index
Central estimate
Observed Mesotheliomadeaths
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claims numbers & claims handling quicker handling
• draft CPR protocol, standardised judicial approach larger interim payments
• DWP reforms & draft CPR protocol more expensive claims
• DWP reforms will introduce CRU mechanisms retrospective costs
• DWP reforms (CM&OP Bill clause 49(3))
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Policy coverage Divisible Pleural Thickening
Asbestosis
Indivisible Mesothelioma
Lung Cancer
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Divisible injury
Defendant only pays for the period of their exposure
Insurer pays only for the period on risk
Holtby v Brigham & Cowan (2000)
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Indivisible injury “each defendant liable in full for a claimant’s
damage, although a defendant can seek a contribution against another employer liable for causing the disease”
(Hoffman, Fairchild)
Phillips v Syndicate 992 (2003)
Insurer liable for full extent of C’s damages even though it only insured for part of C’s employers culpable exposure
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ABI mesothelioma guidelines - EL Time based apportionment Pay and be paid. Apportionment first by employer
then by insurer Ignore void periods – no solvent employer
and no insurer Gap period paid by solvent employer or if
insolvent, by its insurer BUT Phillips
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Policy Triggers Wording of policies differ
Long tail claims – cause and effect can be many years apart.
Mesothelioma - historically, EL coverage usually when the exposure occurred and PL, when malignancy occurs 10 years prior to symptoms.
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Bolton v MMI and CU (2006) PL claim
CU 1960-65 when injury/illness “occurred”
MMI 1979-91when injury/illness “occurs”
Court of Appeal found that injury occurs when the malignancy develops or symptoms identified
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Implication on Policy Trigger PL polices usually worded ‘occurs’ so will be
when malignancy occurs/symptoms develop
EL policies post 1 January 1972 should state injury or disease “sustained” by employee and “arising” out of their employment so will be when exposure occurred.
Pre-1972 policy wording varies – some which use wording ‘occurs’
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Following Bolton “caused” – can you argue that can’t be
provide you caused it, just that materially increased the risk?
Pre-1972 EL coverBAI, MMI, test cases
US – Triple Trigger approach? Compensation Act 2006 Reinsurance position
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Noise-induced hearing loss Long tail – reservoir of 20dB
Divisible dose related and cumulative
Noise related deterioration stop with exposure
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Incidents of NIHL 1996 – 1.1 million-1.3 million people
exposed to noise in excess of 85dB(A) Self-reported work related illness survey
2001/2002 – 87,000 in GB believe they are suffering from hearing problems caused or made worse by work
The number of claims peaked in the 80’s
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Nottinghamshire Textile Cases General date of knowledge
Noise and the Worker - June 1963 Code of Practise - 1973
Special or actual dates of knowledge
Noise at Work Regulations 1989 and 2005
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Nottinghamshire Textile Cases 7 Test cases Daily exposure 80-86bD (A) Breach - no general liability
below 90dB(A) Diagnosis - History of exposure
PLUS
- “notch” on audiogram at 4kHz
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Potential for Future Claims Insurers reporting increase New Legislation – Noise at Work
Regulations 2005 New Areas of Litigation call centres
leisure industry
motorcycles Acoustic Shock Syndrome
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Asymptomatic conditions& pleural plaques
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Pleural plaques Duty, breach, causation, loss Pleural plaques are asymptomatic, so what is the ‘loss’? The basic test case argument is, essentially:
• exposure + plaques + anxiety = £ compensation• however, doesn’t 0 + 0 + 0 = ??
House of Lords ruling expected before end of year Prospects of Government intervention thereafter?
“There was a lack of evidence of associated disability to justify adding pleural plaques to the list of prescribed diseases.” - IIAC Annual report 2004/05
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Asymptomatic conditions The focus for now is pleural plaques, and there was an
unsuccessful amendment to the Compensation Bill
“The lodging in the body of a chemical or substance which may cause injury as a consequence of negligence or breach of statutory duty, shall give rise to a cause of action whether or not the lodging has caused symptoms at the time the action is commenced or brought to trial.”
Any other examples?
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Harassment & Discrimination Protection from Harassment Act 1997
S1(1) A person must not pursue a course of conduct which he know or ought to know amount to harassment of another
Criminal offence to breach s1 Damages for any anxiety and financial
loss
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Protection from Harassment Act
Limitation 6 years Course of Conduct Harassment – criminal liability Foreseeability Quantum – Singh v Bhakar & Bhakar
(2006)
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Majrowski v Guys and St Thomas’ Vicarious liability
“course of employment”
Lister v Hesley Hall
No defence for employer
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Insurance Coverage
EL policy Anxiety/distress – is this covered? “Mental Anguish” Intentional Acts PL Policy
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Discrimination Sex Race Disability Sexual Orientation Religion/belief Age
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Key Issues Time limits – 3 or 6 months Conduct must relate to status Foreseeability not required Damages for injured feelings
- £500-£25,000 Costs
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Employment Tribunal Statistics
115,039 claims in 2005/06 23,810 discrimination claims 4,383 successful at tribunal £10,807
- £30,361 average award 1,038 costs orders
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Insurance Considerations Employment Practises Insurance EL Policy wording Injury to Feelings – is this covered? Intentional Acts Exclusion of ‘claims arising solely out of
the contract of employment’ PL Policy – DDA Service Providers
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Conclusions There is a continuing political and judicial
focus on UK mesothelioma claims We are entering a period of uncertainty
regarding ‘asymptomatic’ conditions Legislation against discrimination and
harassment is drawing EL & PL insurers into unforeseen areas
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business services construction & property insurance & indemnity leisure media & technology public sector retail transport
LUG Conference 2007
Non-traumatic harm: risk factors & legal issues
Alistair Kinley & Vanessa Latham