How charities can claim their costs in personal injury claims
The legal framework, the process, and best practice for claiming costs.
Many of those who suffer from personal injury or clinical negligence injuries will rely on the support that can be provided by charities across the country. Whether this be air ambulances, carers, mobility aids, hospice care, or psychiatric therapy, injured people can draw from a number of sources to aid their recovery. Although this may be free for the injured person, this comes at a cost to the charity. Although donations can help with this, is there a way that a charity can reclaim the costs of the care they have provided to an injured person as part of that person's personal injury claim?
The answer is yes, as decided in Drake v Foster Wheeler Ltd [2010] EWHC 2004 (QB). In this case a man suffered from malignant mesothelioma from exposure to asbestos whilst he worked. The man was looked after in a hospice for 23 days before sadly passing away. The family of the man were able to claim against his employer for the cost of this care. It was however noted in this case that claims for hospice care could only arise where a lingering and painful dying period had occurred as a result of illness or injury caused by the acts or omissions of the Defendant.
The Process
The injured person will be asked to provide any costs they have incurred due to the injury they have sustained. This is put into a document called a Schedule of Loss. This can include items such as travel to and from appointments, damaged items/clothing, missed events due to the injury, or prescription costs. If the injured person has been assisted by a charity, they should mention this to their solicitor, who can then contact the charity and ask them what costs can be attributed to that individual. These costs can then be included in the Schedule of Loss, for the Defendant to then consider. The Defendant can then make an offer to settle the claim, which can include the costs that the charity has incurred. If the claim is successful, the injured person will hold the compensation given for the charity's costs on trust for the charity, and must not use it for their own use.
What can you as a charity do to be able to claim these costs back?
The main thing that you can do is set out your mission costs somewhere accessible by the public, and have prepared supporting evidence to prove these costs. Examples of this include how much it costs to run a helicopter for each rescue, how much it costs a hospice per day to look after a patient, or how much does specialist machinery cost that is then loaned or gifted to injured individuals. It is important that any invoices or payment requests are kept and can be produced if required as part of a claim.
You can also advertise this process to injured people that you care for that have been in an accident. It may be that they are bringing a personal injury claim, or considering bringing one, and would not be aware they can claim your costs back too. By making them aware of this process, they are more likely to mention they have had charitable support to their solicitor, who can then contact you to obtain the costs and evidence required for the claim.
With the cost of living crisis impacting donors and charities alike, the opportunity to recoup costs that have stemmed from negligence will be a useful way for charities to ensure they are able to continue providing the support that injured people so desperately need.