Pearson Commission
Encyclopedia
The Royal Commission on Civil Liability and Compensation for Personal Injury, better known as the Pearson commission was a United Kingdom
royal commission
, established in 1973 under the chairmanship of Lord Pearson
. The commission reported in 1978 and made radical recommendations for tort reform
, Pearson believing that tort
's traditional role of compensation had become outdated with the rise of the welfare state
since the end of World War II
. He saw the benefits system as having the primary role of providing compensation and security following an accident, and litigation as being secondary. As a result, the commission recommended a no-fault insurance
scheme for road traffic and industrial accidents, similar to the subsequent New Zealand
Accident Compensation Corporation
, and a scheme of strict liability
for consumer protection. However, the government's response was cool and the recommendations were not followed up, much to Pearson's disappointment.
were:
for social security benefits received was recommended and this was subsequently implemented. There was a further recommendation for the introduction of structured settlement
s but this was not implemented until 1 April 2005 and without the inflation
-proofing that the commission had recommended.
Work injuries - a no-fault insurance scheme administered by the Department of Health and Social Security
(DHSS), financed by employers and providing benefits at the level of the State Earnings-Related Pension Scheme
. The scheme was also proposed to extend to the self-employed and injuries incurred during commuting
.
Road injuries - a no-fault insurance scheme administered by the DHSS, financed by a levy
on petrol, estimated at 1p per gallon
(0.8p per litre
at 2003 prices)
Air transport, Sea and inland waterways - the commission noted that this was largely constrained by international conventions such as the Warsaw Convention
but regretted the low level of settlements allowed.
Rail transport - a no-fault scheme was rejected in favour of proposed strict liability for accidents arising from movement of rolling stock
.
Products liability - a no-fault scheme was rejected and the strict liability scheme drafted by the Council of Europe
and the Commission of the European Union favoured. These European initiatives ultimately led to European Community Directive 85/374/EEC
and the Consumer Protection Act 1987
.
Services in general - retention of existing remedies for the tort of negligence
.
Medical injuries - a no-fault scheme was not recommended but the commission held that he New Zealand and Sweden
experience should be studied and reviewed. Strict liability for injury to human volunteers in clinical trial
s was recommended. No such strict liability was introduced and subsequent volunteers often faced complex litigation as following the disastrous TGN1412
trial in 2006.
Children - The commission proposed a general benefit for severely disabled children, no matter how their disability was caused, to be financed from general tax
ation.
Vaccine damage - The commission proposed that this would be compensated by the general benefit for severely disabled children. Where vaccination
took place on the recommendation of the government, strict liability was proposed.
Ante-natal injury - The commission proposed that this would be compensated by the general benefit for severely disabled children and by strict liability such as it applied to pharmaceuticals. The provisions of the Congenital Disabilities (Civil Liability) Act 1976 should be restricted as it affected family members.
Occupiers' libaility - no change to law on occupiers' liability save the introduction of the Law Commissions recommendations on liability to trespass
ers which ultimately led to the Occupiers' Liability Act 1984
.
Criminal injuries - activities of Criminal Injuries Compensation Authority
endorsed and to be reviewed in the light of proposals for civil liability.
Animals - no change save for aligning Scottish law with that of England and Wales
and Northern Ireland
.
Exceptional risks - strict liability on "controllers of things or operations that by their unusually hazardous nature require supervision because of their potential for causing death or personal injury."
government expressed some caution over the recommendations, especially those as to no-fault compensation. The Conservative Party
and insurance industry were hostile. The Conservative Party came to power in the United Kingdom general election, 1979
and by 1983, the no-fault proposals, though not explicitly rejected, were falling into neglect.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
royal commission
Royal Commission
In Commonwealth realms and other monarchies a Royal Commission is a major ad-hoc formal public inquiry into a defined issue. They have been held in various countries such as the United Kingdom, Australia, Canada, New Zealand, and Saudi Arabia...
, established in 1973 under the chairmanship of Lord Pearson
Colin Pearson, Baron Pearson
Colin Hargreaves Pearson, Baron Pearson PC, KC, CBE was a Canadian-born English barrister and judge. Rising to sit as a judge in the House of Lords, he is best remembered for his unspectacular but efficient and courteous chairmanship of industrial inquiries and royal commissions...
. The commission reported in 1978 and made radical recommendations for tort reform
Tort reform
Tort reform refers to proposed changes in common law civil justice systems that would reduce tort litigation or damages. Tort actions are civil common law claims first created in the English commonwealth system as a non-legislative means for compensating wrongs and harm done by one party to...
, Pearson believing that tort
Tort
A tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
's traditional role of compensation had become outdated with the rise of the welfare state
Welfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
since the end of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. He saw the benefits system as having the primary role of providing compensation and security following an accident, and litigation as being secondary. As a result, the commission recommended a no-fault insurance
No-fault insurance
In its broadest sense, "no-fault insurance" is a term used to describe any type of insurance contract under which insureds are indemnified for losses by their own insurance company, regardless of fault in the incident generating losses. In this sense, it is no different from first-party coverage...
scheme for road traffic and industrial accidents, similar to the subsequent New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
Accident Compensation Corporation
Accident Compensation Corporation
The Accident Compensation Corporation is a New Zealand Crown entity responsible for administering the Accident Compensation Act 2001. The Act provides support to citizens, residents, and temporary visitors who have suffered personal injuries....
, and a scheme of strict liability
Strict liability
In law, strict liability is a standard for liability which may exist in either a criminal or civil context. A rule specifying strict liability makes a person legally responsible for the damage and loss caused by his or her acts and omissions regardless of culpability...
for consumer protection. However, the government's response was cool and the recommendations were not followed up, much to Pearson's disappointment.
Terms of reference
The commission's terms of referenceTerms of reference
Terms of reference describe the purpose and structure of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal. The terms of reference of a project are often referred to as the project charter.- Terms of...
were:
Members
The commission's members were:- Lord Pearson (chairman)
- Lord Allen of AbbeydalePhilip Allen, Baron Allen of AbbeydalePhilip Allen, Baron Allen of Abbeydale, GCB was a British civil servant.-Education and early life:...
- Lord CameronJohn Cameron, Lord CameronJohn Cameron, Lord Cameron KT DSC PRSE FBA was a Scottish judge, and President of the Royal Society of Edinburgh from 1973 to 1976.He was elected a Senator of the College of Justice on 5 July 1955....
- Walter Anderson, former general secretary, National and Local Government Officers Association
- Norman Marsh QCQueen's CounselQueen's Counsel , known as King's Counsel during the reign of a male sovereign, are lawyers appointed by letters patent to be one of Her [or His] Majesty's Counsel learned in the law...
, Law CommissionLaw CommissionA Law Commission or Law Reform Commission is an independent body set up by a government to conduct law reform; that is, to consider the state of laws in a jurisdiction and make recommendations or proposals for legal changes or restructuring... - Prof. Richard Schilling, former professor of occupational health, London School of Hygiene and Tropical Medicine
- Ronald Skerman, chief actuaryActuaryAn actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms ....
, Prudential Assurance Ccompany - Margaret Brooke, former vice-chairman (sic) National Federation of Women's Institutes
- Prof. Robert DuthieRobert DuthieRobert Buchan Duthie, CBE FRCSE FRCS was a US-born British orthopaedic surgeon who established the prestige of the Nuffield Orthopaedic Centre in Oxford and built its leading reputation for musculoskeletal medicine. He developed novel methods of injury management and contributed to teaching and...
, Nuffield ProfessorNuffield FoundationThe Nuffield Foundation is a British charitable trust, established in 1943 by William Morris , the founder of the Morris Motor Company. Lord Nuffield wanted to contribute to improvements in society, including the expansion of education and the alleviation of disadvantage...
of orthopaedic surgery, Oxford University - Robert MacCrindle QC
- Denis Marshall, solicitorSolicitorSolicitors are lawyers who traditionally deal with any legal matter including conducting proceedings in courts. In the United Kingdom, a few Australian states and the Republic of Ireland, the legal profession is split between solicitors and barristers , and a lawyer will usually only hold one title...
, member of the council of the Law Society of England and WalesLaw Society of England and WalesThe Law Society is the professional association that represents the solicitors' profession in England and Wales. It provides services and support to practising and training solicitors as well as serving as a sounding board for law reform. Members of the Society are often consulted when important... - Prof. Alan Prest, professor of economicsEconomicsEconomics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, London School of EconomicsLondon School of EconomicsThe London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London... - A. Sansom, managing director, Iron Trades Employers Federation
- Prof. Olive Stevenson, head of department of social policy and social work, Keele UniversityKeele UniversityKeele University is a campus university near Newcastle-under-Lyme in Staffordshire, England. Founded in 1949 as an experimental college dedicated to a broad curriculum and interdisciplinary study, Keele is most notable for pioneering the dual honours degree in Britain...
- James Stewart WSWriters to the SignetThe Society of Writers to Her Majesty’s Signet is a private society of Scottish solicitors, dating back to 1594 and part of the College of Justice. Writers to the Signet originally had special privileges in relation to the drawing up of documents which required to be signeted, but these have since...
- Alan Ure, director, Trollope & CollsTrollope & CollsTrollope & Colls was once one of the United Kingdom's largest construction companies.-History:The Company was formed out of the merger of George Trollope & Sons and Colls & Sons .The merged firm started to specialise in civil engineering and during World War...
Recommendations
Recovery of damages in tort - no profound changes were recommended but deduction from damagesDamages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
for social security benefits received was recommended and this was subsequently implemented. There was a further recommendation for the introduction of structured settlement
Structured settlement
A structured settlement is a financial or insurance arrangement, defined by Internal Revenue Code as periodic payments; a claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. Structured settlements were first utilized in Canada after a...
s but this was not implemented until 1 April 2005 and without the inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
-proofing that the commission had recommended.
Work injuries - a no-fault insurance scheme administered by the Department of Health and Social Security
Department of Health and Social Security
The Department of Health and Social Security was a ministry of the British government in existence for twenty years from 1968 until 1988, and was headed by the Secretary of State for Social Services.-History:...
(DHSS), financed by employers and providing benefits at the level of the State Earnings-Related Pension Scheme
State Earnings-Related Pension Scheme
The State Earnings Related Pension Scheme was a UK Government pension arrangement, to which employees and employers contributed between 6 April 1978 and 5 April 2002, when it was replaced by the State Second Pension....
. The scheme was also proposed to extend to the self-employed and injuries incurred during commuting
Commuting
Commuting is regular travel between one's place of residence and place of work or full time study. It sometimes refers to any regular or often repeated traveling between locations when not work related.- History :...
.
Road injuries - a no-fault insurance scheme administered by the DHSS, financed by a levy
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
on petrol, estimated at 1p per gallon
Gallon
The gallon is a measure of volume. Historically it has had many different definitions, but there are three definitions in current use: the imperial gallon which is used in the United Kingdom and semi-officially within Canada, the United States liquid gallon and the lesser used United States dry...
(0.8p per litre
Litre
pic|200px|right|thumb|One litre is equivalent to this cubeEach side is 10 cm1 litre water = 1 kilogram water The litre is a metric system unit of volume equal to 1 cubic decimetre , to 1,000 cubic centimetres , and to 1/1,000 cubic metre...
at 2003 prices)
Air transport, Sea and inland waterways - the commission noted that this was largely constrained by international conventions such as the Warsaw Convention
Warsaw Convention
The Warsaw Convention is an international convention which regulates liability for international carriage of persons, luggage or goods performed by aircraft for reward....
but regretted the low level of settlements allowed.
Rail transport - a no-fault scheme was rejected in favour of proposed strict liability for accidents arising from movement of rolling stock
Rolling stock
Rolling stock comprises all the vehicles that move on a railway. It usually includes both powered and unpowered vehicles, for example locomotives, railroad cars, coaches and wagons...
.
Products liability - a no-fault scheme was rejected and the strict liability scheme drafted by the Council of Europe
Council of Europe
The Council of Europe is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation...
and the Commission of the European Union favoured. These European initiatives ultimately led to European Community Directive 85/374/EEC
Directive 85/374/EEC
The Product Liability Directive, formally Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products is a directive of the Council of the European Union that created a...
and the Consumer Protection Act 1987
Consumer Protection Act 1987
The Consumer Protection Act 1987 is an Act of the Parliament of the United Kingdom that made important changes to the consumer law of the United Kingdom. Part 1 implemented European Community Directive 85/374/EEC, the product liability directive, by introducing a regime of strict liability for...
.
Services in general - retention of existing remedies for the tort of negligence
Negligence
Negligence is a failure to exercise the care that a reasonably prudent person would exercise in like circumstances. The area of tort law known as negligence involves harm caused by carelessness, not intentional harm.According to Jay M...
.
Medical injuries - a no-fault scheme was not recommended but the commission held that he New Zealand and Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
experience should be studied and reviewed. Strict liability for injury to human volunteers in clinical trial
Clinical trial
Clinical trials are a set of procedures in medical research and drug development that are conducted to allow safety and efficacy data to be collected for health interventions...
s was recommended. No such strict liability was introduced and subsequent volunteers often faced complex litigation as following the disastrous TGN1412
TGN1412
TGN1412 is the working name of an immunomodulatory drug which was withdrawn from development after inducing severe inflammatory reactions in the first human subjects to receive the drug....
trial in 2006.
Children - The commission proposed a general benefit for severely disabled children, no matter how their disability was caused, to be financed from general tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ation.
Vaccine damage - The commission proposed that this would be compensated by the general benefit for severely disabled children. Where vaccination
Vaccination
Vaccination is the administration of antigenic material to stimulate the immune system of an individual to develop adaptive immunity to a disease. Vaccines can prevent or ameliorate the effects of infection by many pathogens...
took place on the recommendation of the government, strict liability was proposed.
Ante-natal injury - The commission proposed that this would be compensated by the general benefit for severely disabled children and by strict liability such as it applied to pharmaceuticals. The provisions of the Congenital Disabilities (Civil Liability) Act 1976 should be restricted as it affected family members.
Occupiers' libaility - no change to law on occupiers' liability save the introduction of the Law Commissions recommendations on liability to trespass
Trespass
Trespass is an area of tort law broadly divided into three groups: trespass to the person, trespass to chattels and trespass to land.Trespass to the person, historically involved six separate trespasses: threats, assault, battery, wounding, mayhem, and maiming...
ers which ultimately led to the Occupiers' Liability Act 1984
Occupiers' Liability Act 1984
The Occupiers' Liability Act 1984 is an Act of the Parliament of the United Kingdom that covers occupiers' liability for trespassers. In British Railways Board v Herrington 1972 AC 877, the House of Lords had decided that occupiers owed a duty to trespassers, but the exact application of the...
.
Criminal injuries - activities of Criminal Injuries Compensation Authority
Criminal Injuries Compensation Authority
The Criminal Injuries Compensation Authority is a non-departmental public body in the United Kingdom. The Authority administers a compensation scheme for injuries caused to victims of violent crime in Great Britain and is funded by the Ministry of Justice in England and Wales and the devolved...
endorsed and to be reviewed in the light of proposals for civil liability.
Animals - no change save for aligning Scottish law with that of England and Wales
England and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
and Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
.
Exceptional risks - strict liability on "controllers of things or operations that by their unusually hazardous nature require supervision because of their potential for causing death or personal injury."
Reception
The LabourLabour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
government expressed some caution over the recommendations, especially those as to no-fault compensation. The Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
and insurance industry were hostile. The Conservative Party came to power in the United Kingdom general election, 1979
United Kingdom general election, 1979
The United Kingdom general election of 1979 was held on 3 May 1979 to elect 635 members to the British House of Commons. The Conservative Party, led by Margaret Thatcher ousted the incumbent Labour government of James Callaghan with a parliamentary majority of 43 seats...
and by 1983, the no-fault proposals, though not explicitly rejected, were falling into neglect.