Insurers love recession

“I just love a good recession,” said UpTights today.

“Careful,” said OldSmoothie, “you’re starting to sound a little like Robert Duvall in ‘Apocalypse Now’.”

“What do you mean?” said BusyBody. “People are losing their jobs and their houses and you’re celebrating?”

“Well, bankruptcy and employment cases are certainly on the rise,” said OldSmoothie.

“Oh, do shut up,” said BusyBody. “Sometimes you really do sound like a broken old record.”

“No, it’s got nothing to do with that,” said UpTights, “although it does concern the way the downturn affects my cases.”

“In what way?” asked TheCreep.

“Loss of earnings claims,” said UpTights. “I’m constantly arguing these days that even if a claimant hadn’t been injured they’d have lost their job or their business would have gone under in any event.”

“Not just that,” said TheVamp. “I’m finding that judges are also being very conservative as to how much they take as the future annual income as well.”

“And that’s before you start arguing about the effects of inflation,” said BusyBody. “Real incomes are actually falling and this needs reflecting in the sums awarded.”

“Which is why insurers are loving the recession,” said UpTights. “Since it means less money awarded in compensation.”

“And part 36 offers made in the good times suddenly looking very exposed,” said BusyBody.

“Well for my part,” said OldSmoothie, “I’d say that with real interest rates at best minimal, the courts should in fact be increasing the standard multipliers they usually apply.”

“All of which means a field day for chatered accountants,” said TheVamp.

“Which is exactly what’s happening at court,” said Teflon. “Less settlements and more fights over matters of, er, high principle.”

“Just the way I like it,” said OldSmoothie.

“It does always strike me as somewhat ironic,” said OldRuin, “that society always seems to spend most on legal fees at those times when it can least afford to do so.”

BabyBarista is a fictional account of a junior barrister written by Tim Kevan whose new novel is Law and Peace. For more information and to read past posts visit babybarista.com. Cartoons by Alex Williams, author of 101 Ways to Leave the Law.

March 1, 2013 · Tim Kevan · Comments Closed
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