Inflated claims

Hall & Ors v Stone [2007] EWCA Civ 1354 18 December

The appellants (H, B and L) appealed against a costs order awarding them only 60% of their costs following a trial of their personal injury claim. The defendant’s car had collided with the rear of the claimants’ car at approximately five miles per hour. The claimants alleged that they had suffered injuries and the defendant’s insurers offered them £750, £350 and £700 respectively. However the claimants had yet to obtain any medico-legal advice and accordingly rejected the offers. No further offers were made. The defendant then alleged that the impact was so slight that it was impossible for the claimants to have sustained any physical injuries. H, B and L brought proceedings claiming £3,000, £1,250 and £2,750 respectively. Because of the allegations of dishonesty, and that the claims were purposely inflated, the case was assigned to the multi-track. The judge at trial dismissed the allegations of fraud or dishonesty and awarded the claimants £1,000, £400 and £699 respectively. He ordered the defendant to pay only 60% of the claimants’ costs to reflect the totality of the case, the offers that were made and the claimants’ conduct during the course of the case.