Claimants injured abroad could face lower compensation

The European Court of Justice (ECJ) has recently ruled in Homawoo v GMF Assurances [2011] EUECJ C412/10  that where an accident took place within the EU prior to 11 January 2009, an English claimant's damages will be assessed within English law and after 11 January 2009 damages will be assessed within the law of the county where the event occurred.

In this case Mr. Homawoo, a British national, was walking along a road in south-west France in 2007 when he was hit by a car and left with two broken legs and brain damage. Mr. Homawoo sued the insurers of the vehicle for compensation. The timing of Mr. Homawoo's accident was when new EU rules regarding the assessment of damages was being passed.

A dispute arose between the parties as to when the new rules came into effect. The insurers of the vehicle that collided with Mr. Homawoo argued that the rules came into force prior to the accident and therefore damages would be assessed within French law. Mr. Hamawoo's solicitors argued that the rules came into effect on 11 January 2009, which was after the date of his accident. As such, Mr. Homawoo was entitled to have damages assessed under English law, which would be higher than if it was assessed on French standards.

The ECJ confirmed that the interpretation made by Mr. Hamawoo's solicitors was correct.  

The impact of the decision will be far-reaching. In many European countries where the cost of living is low and social security payments for residents are high, it could mean far smaller damages awards for Britons who are involved in car accidents or injured in hotels or on beaches, making recovery difficult.

Comment: Whilst the decision in Homawoo has provided clarity regarding assessment of damages, however, the decision places English claimants who are involved in accidents in the EU after 11 January 2009, at a detriment to their EU counterparts. The damages awarded to English claimants would mean in many serious injury cases victims recover only a fraction of the compensation that they would be entitled to under English law that is essential to fund their day-to-day recovery (such as rehabilitation, medical treatment etc.). Conversely, a EU citizen would be entitled to a higher assessment of damages. The decision in Homawoo fails to deal with the anomalous and inequitable position that English claimants have now been placed in.  

Ashfords' Personal Injury Team has extensive experience in all areas of personal injury claims, ranging from accidents on public property or at work to road traffic accidents and clinical negligence.  If you are a claimant and would like to discuss a potential personal injury claim and the funding options available to you, including the option of a "no win no fee" arrangement, please contact Stephen Walker, Partner, on 01884 203057.     

Ashfords LLP is Authorised and Regulated by the Solicitors Regulation Authority. The information in this note is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.