“Fundamental Dishonesty”

A new law came into force in February 2015 namely Section 57 of the Criminal Justice and Courts Act 2015.

This states that if an otherwise successful claimant is found, on the balance of probabilities to have been “fundamentally dishonest” in relation to their claim, the claim must be dismissed unless the Judge thinks there will be substantial injustice.

If found guilty of “fundamental dishonesty” a claimant cannot recover damages, and will lose protection on costs, for example that granted by a Part 36 offer.

In one case in 2012, the claimant put in for over £800,000 and was awarded only £80,000 odd, some 10%.  He had a good case, it seemed, for that £80,000 odd but the Supreme Court stuck out his claim so he got no damages at all.  This was to punish him for his “fundamental dishonesty”.

The new law states that the Judge must strike the claim out unless there is ‘substantial injustice’ so it is even harder for dishonest claimants to profit from their actions.  Another good example would be a victim of personal injury exaggerating their symptoms.  These steps are designed to punish dishonest claimants alongside costs claims against them and the threat of committal to prison or contempt.

From their London offices Hylton-Potts advise on litigation in cases all over the country and operate highly competitive fixed fees.

Look at their website hylton-potts.com for details of their email service and confidential telephone legal hotline.

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