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1 July 2010
Liquidation of Civil Damages is regulated by Articles 1045 and 1046 of the Maltese Civil Code. These provisions have been attributed different and at times, contrasting, interpretations which lead to different methods of quantification of damages. In some cases, these provisions were also extended to award moral damages which are clearly not envisaged under our law (except in very limited cases only).
Currently, two types of damages are awarded - actual damages, costs and liabilities suffered or incurred (damnum emergens) and loss of future earnings (lucrum cessans). The quantification of loss of future earnings is based on a formula set by the Maltese Courts in the 1967 landmark case of Michael Butler v. Christopher Heard. 47 years on, this formula has also proved problematic and legislative intervention became necessary. Amendments to the Civil Code were proposed by means of Act VI of 2004 but these changes were never brought into force.
A new set of amendments have been proposed and their the aim is to:
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remove uncertainties resulting from multiplie and contrasting interpretations and enabling the Courts to decide cases quicker
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introduce the concept of moral/non-pecuniary damages
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calculate damages in the case of resulting disability by reference to pre-established percentages
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calculate damages due to heirs by reference to their degree of dependency on the deceased
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award compensation for future medical expenses
The amendments also contain proposals as to the capping of certain damages:
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€600,000 for total or partial permanent disability
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€600,000 for future medical treatment
These amendments inlcude a number of subsidiary regulations and are currently undergoing a consultation process. We will be uploading more information about this subject in due course. For more information, please contact Inger Cini or Christian Farrugia.