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Landmark decision from court of appeal on Swift v Carpenter

‘The eagerly awaited Court of Appeal judgement in Swift v Carpenter has now been handed down.”

The Court of Appeal have held that they are not bound by Roberts v Johnstone.

The Appeal Judges considered a number of different methodologies advanced by the parties but held that the correct approach was to use the additional capital cost of suitable accommodation, (ie the cost of the property needed as a result of the accident, less the cost of the property the Claimant would have had but for the accident)  less the present market value of the reversionary interest.

Currently, the market for reversionary interests is small and the Court of Appeal have adopted a cautious approach when assessing the sort of return that could be achieved in that regard. As a result the reversion will be valued by applying an annual rate of return of 5% over the Claimant’s life expectancy.

Hopefully, the judgement will provide a solution to what is a very contentious issue in many cases and will result in Claimants being fairly compensated for their future accommodation needs.

For more information on the Swift v Carpenter case click here.