The Gazette 1996

GAZETTE

OCTOBER 1996

(b) A n y p e n s i o n, g r a t u i ty or o t h er like b e n e f it p a y a b le u n d er statute or o t h e r w i se in c o n s e q u e n ce of the d e a th of the d e c e a s e d. T h e Dáil s o u g ht to c o n f i rm this p r i n c i p le in S e c t i on 2 3 6 of the Social Welfare (Consolidation) Act, 1993. T h i s s e c t i on p r o v i d es that in fatal i n j u r i es a c c i d e n ts started on or a f t er 2 4 F e b r u a ry 1981, the f o l l o w i ng b e n e f i ts are n ot d e d u c t i b l e: • S u r v i v o r 's p e n s i on • O r p h a n ' s ( c o n t r i b u t o r y) a l l o w a n ce • L o n e p a r e n t 's a l l o w a n ce • C h i ld b e n e f it • W i d o w ' s ( n o n - c o n t r i b u t o r y) p e n s i on • O r p h a n ' s ( n o n - c o n t r i b u t o r y) p e n s i o n. Act p r o v i d es that in a s s e s s i ng d a m a g e s in fatal i n j u r i es a c c i d e nt c a s es the trial j u d g e " m a y " d e d u ct f r o m t he a w a rd a D e p a r t m e nt of S o c i al W e l f a re g r a nt in r e s p e ct of f u n e r al expenses. 17 In Murphy v Cronin, the deceased was killed in a traffic a c c i d e n t. H e h ad not r e a c h ed p e n s i on a ge a nd t he rules of the p e n s i on to w h i ch h e h ad b e en a c o n t r i b u t or p r o v i d ed that in s u ch an e v e nt a s u m e q u al to his a c c u m u l a t ed c o n t r i b u t i o n s, t o g e t h er w i th interest, w a s p a y a b le to his p e r s o n al r e p r e s e n t a t i ve a nd that a s u m e q u al to 2 5 % of s u ch c o n t r i b u t i o ns w a s p a y a b le to his w i d o w. T h e S u p r e me C o u rt h e ld that t he f o r m e r p a y m e nt w a s a " l i ke b e n e f i t" a nd that the latter w a s a " g r a t u i t y ", h e n ce n e i t h er p a y m e nt w a s d e d u c t i b le u n d er S e c t i on 50. 18 W h e r e the plaintiff is an E C n a t i o n a l, t he Irish C o u r ts h a v e to c o n s i d er t he r e l e v a nt legislation ( C o u n c il R e g u l a t i on 1408/71 o n the A p p l i c a t i on of S o c i al S e c u r i ty S c h e m es to e m p l o y ed p e r s o ns a n d their f a m i l i es m o v i n g w i t h in the c o mm u n i t y ). A n i n t e r e s t i ng c a se o n this point is Van Keep v Surface Dressing Limited H o w e v e r, S e c t i on 7 5 ( 3) of the 1993 European Community nationals (the law)

A f t e r t he trial, the D u t c h i n s u r a n ce c o m p a n y instituted s e p a r a te p r o c e e d i n gs a g a i n st t he H i b e r n i a n. O n a p p e al t he S u p r e me C o u rt d i s m i s s ed t he a p p e al b ut v a r i ed the o r d e r r e m o v i ng t he f i n d i ng of c o n t r i b u t o ry n e g l i g e n ce a n d a l so m a d e an o r d er s e t t i ng a s i de a s u m of a p p r o x i m a t e ly £ 1 0 , 0 0 0 to e n s u re that if p r o c e e d i n gs started b y t he D u t c h i n s u r a n ce c o m p a n y a g a i n st t he H i b e r n i an s u c c e e d ed that t he H i b e r n i an w o u l d n ot h a v e to p a y o ut twice. 2 " Conclusion T h e p u r p o se of the 1 9 93 l e g i s l a t i on w a s to e n c o u r a ge a r e d u c t i on in e m p l o y e r s' liability i n s u r a n ce a n d in m o t o r v e h i c le i n s u r a n c e. T h e i n s u r a n ce c o m p a n i es d o n ot h a v e to r e i m b u r se t he D e p a r t m e nt of S o c i al W e l f a r e t he m o n i e s w h i c h h a v e b e e n d e d u c t ed b y t he c o u r ts f r o m d a m a g e s a w a r ds b e c a u se of t h o se b e n e f i ts p a id o ut b y t he D e p a r t me n t . 2 1 H o w e v e r, the l e g i s l a t i on h a s b e e n c r i t i c i s ed on t he g r o u n ds that as a g e n e r al r u le t he p l a i n t i ff is in r e c e i pt of s u ch b e n e f i ts b e c a u se of t he c o n t r i b u t i o ns h e h a s m a d e , by P R S I , t o w a r ds s e c u r i ng s u ch b e n e f i t s. T o c o n c l u de w i th t he w o r d s of M a c K e n z i e J: " W h y s h o u ld t he i n s u r a n ce c o m p a n y t a ke a d v a n t a ge of t h o se p a y m e n t s? A m a n w h o g e ts d i s a b i l i ty or d i s a b l e m e nt is in f a ct g e t t i ng h is o w n m o n e y b a c k; it s t r i k es m e as g r o s s ly u n f a ir a n d to a d e g r ee c o n t r a ry to n a t u r al j u s t i ce to a t t a ck t he m o n e y h e is g e t t i ng f o r s u f f e r i n g . " 2 2 pes PETBOCARGO MAHNE SURVEYORS LTD. Capt. ThomasC. Nash M. INST. PET. Marine Consultancy; Independent Marine Surveyors; Vessel & Terminal Safety Inspection; Recruitment; Procedures Manuals. Cooleen House, Rushbrooke, Cobh, Co. Cork. Tel: 021-811677 Fax: 021-813009 Marine Expert Witness; Ship to Ship Transfer;

h ot air b a l l o o n i st w h o w o r k e d f o r a n u m b e r of y e a rs w i th a b a l l o o n i ng c o m p a n y . S h e t h en b e g an t r a i n i ng f o r a p i l o t 's l i c e n ce a nd in t he s u m m e r of 1 9 89 left t he c o m p a n y w i th t he i n t e n t i on of e s t a b l i s h i ng h er o w n b a l l o o n i ng c o m p a n y. In S e p t e m b er 1 9 89 s he c a m e to D u b l in o n a h o l i d ay a n d w a s i n j u r ed in a t r a f f ic a c c i d e nt w h e n s he w a s c y c l i ng in t he city c e n t r e. A s a r e s u lt of h er i n j u r i e s, t he p l a i n t i ff s p e nt a n u m b e r of m o n t h s in h o s p i t al a n d in a R e h a b i l i t a t i on C e n t re in t he N e t h e r l a n ds a f t er t he a c c i d e n t. D u r i ng that p e r i od s he r e c e i v ed i n j u ry b e n e f it f r o m a p r i v a te D u t c h i n s u r a n ce c o m p a n y to w h i c h s he w a s o b l i g ed to s u b s c r i be u n d er D u t c h social w e l f a re l a w. B u d d J w a s s a t i s f i ed o n t he m e d i c al e v i d e n ce that t he p l a i n t i ff w o u l d b e a b le to r e t u rn to w o r k b y J u n e 1 9 95 a n d m a d e an a w a r d f o r loss of e a r n i n gs in t he s um of a p p r o x i m a t e ly £ 4 5 , 0 0 0. H e f o u n d t he p l a i n t i ff 1 0% r e s p o n s i b le f o r t he a c c i d e nt a n d m a d e a total C o u n s el f o r t he d e f e n d a nt a s k ed B u d d J t o d e d u ct f r o m the a w a r d a s u m b a s ed o n t he b e n e f i ts r e c e i v ed b y t he p l a i n t i ff f r o m t he D u t c h i n s u r a n ce c o m p a n y. H e c i t ed A r t i c le 9 3( 1) of R e g u l a t i on 1 4 0 8 / 71 w h i c h p r o v i d es that a s o c i al s e c u r i ty i n s t i t u t i on w h i c h h a s p a id s o c i al s e c u r i ty b e n e f i ts f o l l o w i ng an i n j u ry s u s t a i n ed in t he t e r r i t o ry of a n o t h er M e m b e r S t a te c a n, if its o w n l e g i s l a t i on s o p r o v i d e s, s ue t he t o r t f e a s or e i t h er d i r e c t ly or by s u b r o g a t i on to r e c o v er t he m o n i e s p a id o u t. T h e D u t ch i n s u r a n ce c o m p a n y h a d a d i r e ct right to s ue the t o r t f e a s or in I r e l a nd u n d e r D u t ch l a w. B u d d J h e ld that t he m o n e y p a id o ut w a s p a id u n d er a c o n t r a ct of i n s u r a n ce a n d that t h e r e f o re it c o u l d not b e d e d u c t ed f r o m t he a w a r d as it w a s p r o t e c t ed b y S e c t i on 2 ( a) of the Civil Liability (Amendment) Act, 1964. W h e n a l e r t ed to t he p o s s i b i l i ty of d o u b l e p a y m e n t, h e t o o k t he v i ew t h at it w a s s o m e t h i ng that t he d e f e n d a n t 's i n s u r e r s, t he a w a r d, t a k i ng into a c c o u nt c o n t r i b u t o ry n e g l i g e n c e, of a p p r o x i m a t e ly £ 2 0 0 , 0 0 0.

H i b e r n i an I n s u r a n ce C o m p a n y , c o u l d w o r k o ut w i th t he D u t c h i n s u r a n ce c o m p a n y.

T h e p l a i n t i f f, a 2 9 y e a r o ld D u t c h n a t i o n a l, w a s a k e e n a n d e x p e r i e n c ed

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