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PI claimant beats fixed costs by proving defendant’s dishonesty.


In what may prove to act as a deterrent to defendants who act dishonestly, it has been reported that a defendant was ordered to pay the claimant £9,000.00 and also a further £9,700.00 costs on an indemnity basis in a case where he had been dishonest about the mechanics of an accident.

Although the county court judgment is not binding it must certainly strike a chord and come as a reminder that the courts will be willing to penalise defendants as well as claimants for unreasonable conduct.

By way of background, the judge concluded that the defendant in an RTA had lied about entering a roundabout from a different junction to the claimant.  It was found that the defendant had for some distance driven quite aggressively behind the claimant and when both vehicles entered the roundabout.

The defendant had also lied about the mechanics of the accident.  The claimant had not pulled out of a different junction into the defendant’s path, both vehicles entered the roundabout at the same time and from the same junction.

It was successfully argued by the claimant that he had been unreasonably put to the cost and trouble of overcoming the defendant’s dishonest defence at trial and the judge determined that costs were to be assessed on the indemnity basis.

Some defendants may consider they have little to lose and that fundamental dishonesty only applies to the claimant.  However, this is a stark reminder that a dishonest party can be penalised in costs regardless of whether the claim is brought or defended.

Here at Box Legal we have been offering after the event legal expense insurance since 2004 and have a wealth of experience. We have competitively priced ATE insurance policies available for all types of personal injury claims and can also arrange legal expense insurance cover for non-personal injury claims such as housing disrepair and financial mis-selling.

The number and variety of cases we arrange cover for is always increasing and so please contact us to discuss any after the event insurance requirements. We are happy to discuss and develop ATE insurance for case types we do not already insure.

If you would like to speak to us or obtain further information then please call on 0870 766 9997, or email

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