lump-sum award

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The form in which damages are normally given by a court. The award covers both past losses (up to the time of judgment) and losses likely to be suffered in the future. Historically, the general rule has been that only one award of damages may be made, unless the wrong is a continuing one (such as continuing trespass or nuisance). However, the court now has the power to make orders for damages taking the form of periodical payments when awarding damages for personal injury. In actions for personal injuries in which the claimant may develop some serious disease or suffer some serious deterioration in his condition, provisional damages may also be given; this enables the claimant to come back for further damages at a future date if the disease or deterioration occurs. Rules relating to the award of provisional damages and periodicial payments under the Damages Act 1996 are set out in Part 41 of the Civil Procedure Rules. In addition, interim payments under Part 25 of the Civil Procedure Rules can be ordered pending the final estimation of damages. See also structured settlement.

Subjects: Law.

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