Firm Stance Saves Millions For Local Authorities

VL (a Child suing by her Litigation Friend the Official Solicitor) v Oxfordshire County Council

Mr Justice Mackay, today handed down Judgment in the High Court, in favour of Oxfordshire County Council in an action that has implications for all Local Authorities and their Insurers.

The facts

The Claimant, VL, was born in May 1993, and as a result of being violently shaken by her father on 12 November 1994 suffered catastrophic injuries.

Various Care Orders were made, the effect of which was that Oxfordshire County Council acquired parental responsibility, shared with VL's mother.

No criminal prosecution was ever brought against VL's father, but instead, with the approval of the Court, VL's father was rehabilitated into the family, where he still lives, successfully caring for his children. The work of the Oxfordshire County Council Social Worker involved was praised in the care proceedings. She also took steps to obtain such financial assistance and respite care as was available for the benefit of the family, and also took steps to apply on behalf of VL, to the Criminal Injuries Compensation Board for an award. She sent for an Application Form in November 1995, read it through, and put it aside to deal with at a later date, when the Care Proceedings were concluded, and the family situation became clearer.

What the Social Worker did not realise, and it was not mentioned on the Application Form, was that the Criminal Injuries Compensation Board was to be abolished on 1 April 1996 and replaced with a new scheme administered by the Criminal Injuries Compensation Authority. The new scheme was introduced by Act of Parliament, and implemented by Statutory Instrument. The old scheme allowed for substantial awards under common law principles, whereas the new scheme, tariff based, had a maximum award ceiling of £500,000. The new scheme applied not, as might be expected, to claims in respect of injuries inflicted after the date of its introduction, but in line with what Mr Justice Mackay interpreted as "its predominantly money saving purpose", it applied to all claims lodged after 1 April 1996 irrespective of the date of the injury.

Oxfordshire County Council also maintained a Legal Department, including staff specifically working on child care legal issues. The Legal Department monitored general legal developments, and prepared legal summaries, but it too was unaware of the forthcoming imposition of the award ceiling of £500,000.

It was common ground...