The cost of managing a Pl damages fund

In an article in the Solicitors Journal of 10 May Andrew Morgan warned that when awarding damages to a claimant to compensate for future loss of earnings and living expenses, brokers fees and financial advice to manage the fund intended to provide an income stream over a period of a lifetime must be included in the award. In large claims, costly financial advice is often needed to ensure a damages award can provide for a claimant for the rest of his or her life. Mr Morgan cited the, as yet, unreported case of Ejvet v Aid Pallets as highlighting the importance of making adequate provision within the damages for the costs of managing a fund, concluding: ‘If the purpose of an award of damages is to compensate the successful claimant, it is simply a matter of law that such costs and expenses should be recoverable’.