The publication of the long-awaited Civil Liability and Courts Bill has been widely welcomed, with rare unanimity between the legal profession and the insurance industry.
The Bill is aimed at streamlining procedures in personal injuries cases and reducing insurance fraud.
The Minister for Justice told The Irish Times he would introduce the Bill in the Seanad, to speed up the process. It could be law by the summer, depending on the opposition's attitude to it, he said.
Mr McDowell also said that, as the Bill went through, he hoped to introduce amendments which would reduce civil liability for those engaged in voluntary activities. At the moment voluntary bodies can be liable for accidents in members' homes during committee meetings, and insurance requirements make it difficult to run certain public facilities.
Mr Michael Kemp of the Irish Insurance Federation said the Bill "meets all the requirements and, in tandem with the PIAB [Personal Injuries Assessment Board\], will help to reduce insurance costs".
Asked to quantify the reduction, he said the Bill met five or six of the recommendations in the Motor Insurance Advisory Board report, and could result in a reduction in insurance premiums of an estimated 8 to 10 per cent.
Mr David Nolan SC, speaking for the Bar Council, also welcomed the Bill, saying it reflected the council's submission to the Denham Committee. "It is good for clients. It will get rid of a lot of legal hurdles, cases will come to court quicker and this will reduce costs," he said.
"This is the biggest change in court procedures since the 1870s."
However, Mr Ken Murphy, director general of the Law Society, while generally welcoming the Bill, criticised the proposal to cut the time limit for bringing claims from three years to one. "We believe it is unfair and will lead to injustice," he said. "RTÉ's Prime Time programme, Bad Medicine, suggested that 14,000 people were injured or killed in Irish hospitals by medical error, but only about 4 per cent of these incidents resulted in claims. With less time there will be even fewer."
The Bill includes a number of new procedures. Once the claim is made, there is a strict timetable that both plaintiff and defendant must adhere to, with a specific "personal injuries summons" that will outline the information that the claim must contain. This will include the alleged wrongful act of the defendant, the circumstances of the wrong, and the negligence alleged.
The plaintiff must also supply information concerning previous personal injuries actions or medical treatments having a bearing on the action concerned. Claims for lost earnings will have to be backed up with documentation from the Revenue Commissioners or the Department of Social and Family Affairs.
The defendant must reply in a specific way, including the elements of the claim where proof is not required, and the grounds on which the defendant claims he or she is not liable.
Both parties will have to swear affidavits backing up the claims and defences against it. A false statement in an affidavit will expose a person to prosecution and could lead to a fine of up to €100,000 or 10 years in prison.Making false claims will also allow the court to dismiss the action.
The Bill provides for the court to order a mediation conference, under either an agreed or court-appointed chairperson.
This chairperson will prepare a report for the court, and the conduct of the parties during this process can have a bearing on the award of costs.
Both plaintiff and defendant will have to serve a notice of an offer of settlement, which will be lodged in court. These, too, will have a bearing on costs awards.