Lying for free

The Court of Appeal decision in Widlake [1] has courted controversy with academics and practitioners alike asking if the opportunity was missed to send a clear message that deliberate exaggeration and the pursuit of fraudulent claims will simply not be tolerated in the judicial process. Andrew Gillett of Weightmans examines the ruling.

Andrew Gillett (+44 (0) 121 700 8566, andrew.gillett@weightmans.com) is a partner specialising in counter fraud strategies, claims handling & sanctions at Weightmans LLP.

In brief

While recognising that courts deal with fraudulent and exaggerated claims on a daily basis and that misconduct so egregious should be penalised, appropriate sanction (unless the misconduct is “spectacularly dishonest” [2]) is to disallow the claimant an entitlement to his/her own costs. If a defendant seeks further redress or protection for having to incur costs in challenging, fraudulent or exaggerated claims, they should do so through the provisions of Civil Procedure Rules Part 36 by making effective offers to settle legitimate losses.