Article 4

After rule 82 in the 1984 Rules there shall be inserted the following new rule—

“Treatment of structured payments, annuities etc.

82A

(1)

Where—

(a)

any structured payment of damages, or

(b)

any payment which is intended as part of a series of payments which arise from an annuity, insurance bond or similar arrangement,

is made to or for the benefit of a patient, one half, and only one half, of any such payment shall be treated as income of the patient for the purpose of calculating any fee payable under these Rules which requires the ascertainment of the clear annual income at the patient’s disposal.

(2)

In paragraph (1), a structured payment of damages means a payment which—

(a)

arises from—

(i)

the judgment or award of any court, arbitrator or other competent body in England and Wales or elsewhere, or

(ii)

the settlement of any claim or potential claim under the law of England and Wales or any other place, whether before or after the commencement of any proceedings in respect of such a claim;

(b)

is made as part of a series of payments that are to be made from time to time until the death of the patient or some later date; and

(c)

is not the first payment to be made in the series.

(3)

For the purposes of paragraphs (1)(b) and (2)(b), payments may form part of a series notwithstanding that they—

(a)

consist of differing amounts, or

(b)

are payable at differing intervals.”