Injury claims crippling businesses

A local businessman says personal injury claims are crippling small businesses.

Cavan’s Fifth Avenue bar owner and taxi operator Seamus Farrell made the statement after successfully fending off a claim before Cavan Circuit Court last week.

“It’s the courts view it doesn’t show it because it didn’t happen,” said Judge John Aylmer in relation to CCTV footage shown during Jason Jermyn v Patrick Handford and Seamus Farrell (see this week's print edition of the Celt for full court report).

The plaintiff’s own counsel argued the footage should have been considered inadmissible as they were unaware of its existence until the day of the hearing.

They also challenged that the footage did not show the taxi, driven by Mr Hanford and owned by Mr Farrell, reversing back and hitting Mr Jermyn on October 10, 2014.

“If it did happen, it would show it,” contended the judge in reply to Mr Jermyn’s counsel Robert Crowley BL who challenged the court’s decision against his client.

Reacting after the ruling, Mr Farrell said: “It’s very hard to be a business owner these days.”

He further claimed that he saw the cost of his taxi insurance rocket five-fold from €900 to €4,500 per year as a direct result of the outstanding claim on his policy.

“We’re absolutely delighted, both of us. This has been going on for six years, hanging over us, and twice a year coming to court here waiting for the case to be heard, and over something we should not have been here for” he said, commenting on the judge’s ruling.

All in, between the premium imposed on his insurance and legal costs, Mr Farrell estimates fighting the claim has cost him the guts of €20,000.

“The money paid on insurance is spent and dead now. I’m probably down around €20,000 all in, maybe more even if I sat down and did the sums. Claims like this are a terrible thing to happen to a small business. They take heart and soul from you,” adds Mr Farrell, who earlier this year saw another case taken against him dropped after CCTV footage emerged to vindicate his position.

According to figures published by the Central Bank of Ireland, for litigated settlements, the vast majority (85 per cent) of litigated settlements between 2015 and 2019, settled for less than €100,000, with compensation of €23,572 and legal costs totalling €14,949.

Earlier this year a Law Reform Commission report concluded that introducing a cap on damages awarded in personal injury claims would be permissible under Irish constitutional law.

The review of damages was prompted by rising insurance premia for businesses and motorists, which the industry claims is a result of excessive payouts being awarded for personal injury claims.

Mr Farrell praised his insurance firm’s willingness to fight the case. “I’m glad they didn’t just let this one go. I’m glad they fought this one,” he said.

For Mr Hanford, the driver caught up in the court drama, he stopped taxiing shortly after the claim was made against him.

“The fact is I’m no longer a taxi driver. I got out because this is what you’re getting all the time. It just wasn’t worth it any more.”

Mr Handford thanked the judge but expressed the view that, when cases are thrown out, there should be more consequences for the losing plaintiffs.